Question

Using an appropriate diagram, illustrate the relationships between key parties who contribute to good corporate governance structure in a company. Key parties must include the board of directors (Board), company secretary, management, internal and external auditors, shareholders, and stakeholders. Based on your diagram, explain the accountability of each party in the company setting.

Answer 1

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Introduction

Here we are going to discuss about a corporate governance structure.Corporate governance primarily involves balancing the interests of a company's multiple shareholders, such as shareholders, senior executives, customers, suppliers, financiers, government.

Because corporate management provides the framework for achieving an organization's objectives, it covers every aspect of management, from projects and controls to performance measurement and corporate exposure.

Explanation

Governance refers to a set of rules, regulations, policies and resolutions that govern corporate behavior.The board of directors plays an important role in management, and this can make a huge difference to stock valuation.

The corporate management of a company is important to investors because it shows the direction and business integrity of a company. Good corporate management helps companies to build trust with investors and the community.

This old but recent excerpt from a paper written by Davis in 1991 provides a complete overview of this theory. Using business terminology, pursuing this principle in the interests of shareholders (owned by a company) may not be in the best interest of the board of directors.

This happens because the success of managers is usually measured by short-term goals.Managers are well aware of the company environment because they have the ability to act on their own selfishness, they can influence strategic and investment decisions, and they have additional information.

Sometimes see companies as one of many investments, which can be vulnerable due to lack of knowledge about the situation or business environment.

Broadly speaking, agency theory is the relationship between the principal (owner) and the agent (manager). More specifically, it explores this relationship from a behavioral and structural perspective.

The theory is that if given the opportunity, agents will act selfishly, behaving contrary to the interests of the primary. Therefore, the principals will formulate structural mechanisms to monitor the agency in order to control opportunistic behavior and better align the interests.

Conclusion

We discussed about a corporate governance structure. In the world of corporate governance these changes are really needed for the long-term world, showing that consistency in the agendas of companies is really growing through the mindset.

Hey champ,Welcome to this platform. Here you will get the answerok with better quality in minimum time. This answers has been given by qualified expert. In the event that you face any uncertainty than you might post the comment for this answer.Your answer is given below:

Introduction

Here we are going to discuss about a corporate governance structure.Corporate governance primarily involves balancing the interests of a company's multiple shareholders, such as shareholders, senior executives, customers, suppliers, financiers, government.

Because corporate management provides the framework for achieving an organization's objectives, it covers every aspect of management, from projects and controls to performance measurement and corporate exposure.

Explanation

Governance refers to a set of rules, regulations, policies and resolutions that govern corporate behavior.The board of directors plays an important role in management, and this can make a huge difference to stock valuation.

The corporate management of a company is important to investors because it shows the direction and business integrity of a company. Good corporate management helps companies to build trust with investors and the community.

This old but recent excerpt from a paper written by Davis in 1991 provides a complete overview of this theory. Using business terminology, pursuing this principle in the interests of shareholders (owned by a company) may not be in the best interest of the board of directors.

This happens because the success of managers is usually measured by short-term goals.Managers are well aware of the company environment because they have the ability to act on their own selfishness, they can influence strategic and investment decisions, and they have additional information.

Sometimes see companies as one of many investments, which can be vulnerable due to lack of knowledge about the situation or business environment.

Broadly speaking, agency theory is the relationship between the principal (owner) and the agent (manager). More specifically, it explores this relationship from a behavioral and structural perspective.

The theory is that if given the opportunity, agents will act selfishly, behaving contrary to the interests of the primary. Therefore, the principals will formulate structural mechanisms to monitor the agency in order to control opportunistic behavior and better align the interests.

Conclusion

We discussed about a corporate governance structure. In the world of corporate governance these changes are really needed for the long-term world, showing that consistency in the agendas of companies is really growing through the mindset.