5 Questions
According to Sir Adrian Cadbury, what is corporate governance?
Corporate governance is the system by which companies are directed and controlled.
According to the International Finance Corporation, what does corporate governance refer to?
Corporate governance refers to structures and processes for the direction and control of companies.
Who are the stakeholders in corporate governance?
The stakeholders in corporate governance include management, board of directors, controlling shareholders, minority shareholders, and other stakeholders.
Why has corporate governance attracted public interest?
Corporate governance has attracted public interest due to its apparent importance for the economic health of corporations and society.
What is the purpose of corporate governance?
The purpose of corporate governance is to hold the balance between economic and social goals, as well as between individual and communal goals.
Study Notes
Definition of Corporate Governance
- Corporate governance is the system by which companies are directed and controlled, as defined by Sir Adrian Cadbury.
- It refers to the relationships among stakeholders involved in determining the direction and performance of a corporation, according to the International Finance Corporation.
Stakeholders in Corporate Governance
- Stakeholders include shareholders, creditors, employees, customers, suppliers, governments, and communities.
Importance of Corporate Governance
- Corporate governance has attracted public interest due to high-profile company failures and financial crises that have resulted in large-scale job losses and economic instability.
Purpose of Corporate Governance
- The primary purpose of corporate governance is to ensure that a company is run in a way that maximizes long-term value for shareholders while also satisfying the legitimate interests of other stakeholders.
Test your knowledge on corporate governance and ethical considerations with this quiz! Learn about the definition of corporate governance and discover who stated that it is the system by which companies are directed and controlled. Explore the significance of corporate governance for the economic health of corporations and society.
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