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In what contexts can governance be used?
In what contexts can governance be used?
Governance can be used in several contexts such as corporate governance, international governance, national governance, and local governance.
What does governance refer to?
What does governance refer to?
Governance refers to a process whereby elements in society wield power, authority, and influence and enact policies and decisions concerning public life and social upliftment.
What are the characteristics of good governance?
What are the characteristics of good governance?
The characteristics of good governance include participation, rule of law, transparency, accountability, responsiveness, consensus-oriented, effectiveness & efficiency, and equity & inclusiveness.
What is the primary focus of the book mentioned in the text?
What is the primary focus of the book mentioned in the text?
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What are the key components of risk management?
What are the key components of risk management?
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Executive compensation should not be aligned with company performance.
Executive compensation should not be aligned with company performance.
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What is the role of the Board of Directors?
What is the role of the Board of Directors?
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______ are laws and regulations that companies must comply with to operate legally and ethically.
______ are laws and regulations that companies must comply with to operate legally and ethically.
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Match the following: Shareholder rights
Match the following: Shareholder rights
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Study Notes
What is Governance?
- Governance refers to a process where elements in society wield power, authority, and influence to enact policies and decisions for public life and social upliftment.
- It comprises all processes of governing, undertaken by governments, markets, or networks, over a social system, whether through laws, norms, power, or language.
- Governance means decision-making and implementing decisions through the exercise of power or authority by leaders.
Characteristics of Good Governance
- Participation: essential for good governance
- Rule of Law: a major characteristic of good governance
- Transparency: a key aspect of good governance
- Accountability: necessary for good governance
- Responsiveness: good governance requires responsiveness
- Consensus-Oriented: good governance should be consensus-oriented
- Effectiveness: good governance should be effective
- Efficiency: good governance should be efficient
- Equity & Inclusiveness: good governance should ensure equity and inclusiveness
Risk Management
- Identifies, assesses, and mitigates potential risks that could impact a company's assets, capital, and earnings.
- Effective risk management minimizes losses, maximizes opportunities, and ensures long-term sustainability.
- Components include risk assessment, risk mitigation, and risk monitoring.
- Types of risks include strategic, operational, financial, and compliance risks.
Board of Directors
- A group of individuals elected by shareholders to oversee a company's management and make strategic decisions.
- Roles and responsibilities include setting corporate strategy and goals, overseeing management's performance, making major business decisions, and ensuring compliance with laws and regulations.
- Characteristics of an effective board include independence, diversity, accountability, and transparency.
Executive Compensation
- Pay and benefits provided to a company's top executives, including the CEO, CFO, and other senior leaders.
- Importance lies in aligning with company performance and being fair and transparent.
- Components include base salary, performance-based incentives, equity-based compensation, and benefits.
- Best practices include transparency, performance-based incentives, and shareholder approval.
Compliance Regulations
- Laws and regulations that companies must comply with to operate legally and ethically.
- Importance lies in protecting stakeholders, maintaining public trust, and preventing illegal activities.
- Key regulations include Sarbanes-Oxley Act (SOX), Dodd-Frank Wall Street Reform and Consumer Protection Act, Foreign Corrupt Practices Act (FCPA), and General Data Protection Regulation (GDPR).
Shareholder Rights
- Rights and privileges granted to shareholders, including the right to vote, receive dividends, and access information.
- Importance lies in protecting shareholders' interests and ensuring they are treated fairly.
- Key rights include the right to vote, receive dividends, access information, and attend meetings.
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Description
This quiz explores the concept of governance, including its definition, processes, and characteristics. Learn about the different aspects of governance and how it affects public life and social upliftment.
