Principles of Corporate Governance at Libyan International Medical University
Corporate governance refers to the guidelines controlling a business’s stakeholders. It involves balancing various interests for sustainable operations and ethical conduct. Explore the benefits, principles, and practices of corporate governance in this comprehensive study.
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Libyan international medical university Faculty of business administration The Principles of Corporate Governance Dana Elgimbri 3784 Danna_3784@limu.edu.ly
TABLE OF CONTENTS INTRODUCTION BENEFITS OF CORPORATE GOVERNANCE CORPORATE GOVERNANCE AND THE BOARD OF DIRECTORS THE PRINCIPLES OF CORPORATE GOVERNANCE CORPORATE GOVERNANCE MODELS TYPES OF BAD GOVERNANCE PRACTICES INCLUDE CONCLUSION REFLECTION REFERENCES 2 Timeline
INTRODUCTION Corporate governance refers to the set of guidelines, customs, and procedures that regulate and control a business. In essence, corporate governance is striking a balance between the interests of a company's numerous stakeholders, including shareholders, senior management, clients, and suppliers. PRESENTATION TITLE 3
BENEFITS OF CORPORATE GOVERNANCE 1. Rules and controls that are transparent are created by good company governance. 2. It promotes trust among citizens, investors, and public servants. 3. Corporate governance can give stakeholders and investors a clear picture of a company's direction and moral character. 4. Long-term financial viability, opportunity, and returns are encouraged. PRESENTATION TITLE 4
CORPORATE GOVERNANCE AND THE BOARD OF DIRECTORS The most direct stakeholder influencing corporate governance is the board of directors. Directors are chosen by the board of directors or chosen by the shareholders. They speak for the company's stockholders. Important choices including executive salary, dividend policy, and the nomination of corporate officers are up to the board. In certain circumstances, such as when shareholder votes demand certain social or environmental concerns be addressed, a board's tasks go beyond financial optimization. PRESENTATION TITLE 5
THE PRINCIPLES OF CORPORATE GOVERNANCE 1. Fairness : The board of directors must treat all stakeholders fairly and equally, including shareholders, employees, suppliers, and communities. 2. Transparency : The board should inform shareholders and other stakeholders in a timely, accurate, and understandable manner about things like financial performance, conflicts of interest, and risks. 3. Risk Management : The board and management must decide how to appropriately control risks of all kinds. 4. Responsibility : The board is in charge of regulating business affairs and managerial actions. 5. Accountability : The purpose of a company's operations and the outcomes of its behavior must be disclosed by the board. PRESENTATION TITLE 6
CORPORATE GOVERNANCE MODELS 1. The Anglo-American Model : The Shareholder Model, the Stewardship Model, and the Political Model are just a few variations on this model. The Shareholder Model, however, is the main model. 2. The Continental Model : Under the Continental Model, two groups stand in for the governing body. They are the management board and the supervisory board. 3. The Japanese Model : The big shareholders known as Keiretsu, who may have investments in similar companies or business partnerships, management, and the government are the main participants in the Japanese Model of corporate governance. PRESENTATION TITLE 7
TYPES OF BAD GOVERNANCE PRACTICES INCLUDE: 1. Companies that don't cooperate with auditors well enough or choose auditors who aren't qualified enough, which leads to the release of phony or illegal financial documents 2. Poor executive compensation plans that don't give corporate officers the best possible incentive 3. Ineffective incumbents being difficult for shareholders to remove due to poorly organized boards PRESENTATION TITLE 8
CONCLUSION Corporate governance is the term used to describe the set of rules, practices, and policies that govern and control a business. Corporate governance, which includes shareholders, senior management, customers, and suppliers, is essentially striking a balance between the interests of a company's many stakeholders. PRESENTATION TITLE 9
REFLECTION In my opinion, corporate governance is inportant PRESENTATION TITLE 10
REFRENCES Corporate Governance Definition: How It Works, Principles, and Examples. Investopedia, 18 Aug. 2022, www.investopedia.com/terms/c/corporategovernance.asp. PRESENTATION TITLE 11
