Key Principles of Governance

These principles help to ensure that companies are managed effectively and ethically, balancing the interests of different stakeholders while aiming for long-term success and sustainability.

Governance is the structure and process of authority, responsibility, and accountability in an organization. Because without effective GRC discipline, the business will face significant risk for survival, and opportunities that it creates cannot be properly transferred into multidimensional business value. The key principles of corporate governance include:

Accountability: Ensuring that the company's management is accountable to the board of directors and the board is accountable to shareholders and other stakeholders.

Transparency: Providing clear, accurate, and timely information to stakeholders about the company's activities, performance, and governance practices.

Fairness: Treating all stakeholders, including shareholders, employees, customers, and the community, equitably and with respect.

Responsibility: Ensuring that the company complies with laws and regulations and acts ethically in its business practices.

Stakeholder Engagement: Recognizing and addressing the interests of various stakeholders, not just shareholders, in the company's decision-making processes.

These principles help to ensure that companies are managed effectively and ethically, balancing the interests of different stakeholders while aiming for long-term success and sustainability.

Posted in: GRC,Principle/Practice