By adopting and/or incorporating corporate governance, organizations aim to strike a balance between various stakeholders, such as the Board of Directors, senior management, employees, and shareholders, among others to ensure transparency, accountability, and security.
The objectives include:
- Protect the interests of stakeholder groups while striving for a fair balance of interests.
- To protect company resources from the dangers of improper management, including fraud and
misuse of funds. - Protect and enhance earnings by achieving elements of corporate governance.
- Establish strict measures, policies and legal requirements to be followed by enterprises per corporate
governance and public interest. - Ensure that business practices and frameworks are consistent with legal requirements and laws, such
as human rights, anti-corruption reform, and environmental management. - To create boundaries between ownership and power by creating various entities such as boards,
shareholders, and management.
Benefits of Good Governance include:
- Avoid litigation by complying with government policies and regulations
- Prevent and mitigate potential risks, whether internal or external
- Improve public confidence and corporate image and brand reputation
- Promote business growth and overall success
- Protect against improper management and theft
- Adhere to ethical standards while aligning strategic goals with stakeholder interests
