Corporate Governance
What is Corporate Governance? Corporate Governance is a generic concept, and in most cases it is defined by its objectives. Corporate Governance can be defined and analyzed by two terms.
The first was introduced by the Organization of economic Corporation and Development (OECD 1999).
OECD defined “Corporate Governance as a system in which business corporations are directed and controlled. The Corporate Governance structure specifies the distribution of rights and responsibilities among the different participation of the corporation such as the Board of Directors, Managers, Shareholders, and other Stakeholders and spells out the rules and procedures for making decisions on corporate affairs. By doing this it also, provides the structure through which the company objectives are set, and the means of attaining those objectives and monitoring the performance. According to the OECD definition Corporate Governance mainly focuses on corporate control, identification of authorities and responsibilities; identifying corporate goals and the proper procedures of attaining such goals and the share of power by all stakeholders and other means necessary”.
The second definition was introduced by the World Bank (WB 2000). World Bank defines Corporate Governance as “being concerned with holding the balance between the economic and social goals and between individual and communal goals. It further states that corporate governance is there to encourage the efficient use of the resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interest of individuals, corporations and society.” The World Bank primarily focuses on attaining the goals of the corporation. That is expected from them since it has a global development objective and the alignment of the diverse interests of the corporation, community, shareholders and management.
In 1999, the OECD published it Principles of Corporate
The first was introduced by the Organization of economic Corporation and Development (OECD 1999).
OECD defined “Corporate Governance as a system in which business corporations are directed and controlled. The Corporate Governance structure specifies the distribution of rights and responsibilities among the different participation of the corporation such as the Board of Directors, Managers, Shareholders, and other Stakeholders and spells out the rules and procedures for making decisions on corporate affairs. By doing this it also, provides the structure through which the company objectives are set, and the means of attaining those objectives and monitoring the performance. According to the OECD definition Corporate Governance mainly focuses on corporate control, identification of authorities and responsibilities; identifying corporate goals and the proper procedures of attaining such goals and the share of power by all stakeholders and other means necessary”.
The second definition was introduced by the World Bank (WB 2000). World Bank defines Corporate Governance as “being concerned with holding the balance between the economic and social goals and between individual and communal goals. It further states that corporate governance is there to encourage the efficient use of the resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interest of individuals, corporations and society.” The World Bank primarily focuses on attaining the goals of the corporation. That is expected from them since it has a global development objective and the alignment of the diverse interests of the corporation, community, shareholders and management.
In 1999, the OECD published it Principles of Corporate