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Chapter 1
4.3 The objectives of corporate governance
Corporate governance is defined as 'the systems by which companies and
other organisations are directed and controlled'.
The main objectives are as follows:
to control the managers/directors by increasing the amount of reporting and
disclosure
to increase level of confidence and transparency in company activities for all
investors (existing and potential) and thus promote growth in the company
to increase disclosure to all stakeholders
to ensure that the company is run in a legal and ethical manner
to build in control at the top that will ‘cascade’ down the organisation.
Illustrations and further practice
Now try TYU 8 – 14 from Chapter 1
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