By Thelma Bowers

‘forever speak the truth’

 Definition
Corporate Governance is a system, operating and
controlling a company with a view to achieve long term
strategic goals to satisfy shareholders, creditors,
employees, customers and suppliers, and complying with
the legal and regulatory requirements, apart from meeting
environmental and local community needs.
CG is about commitment to values, about ethical
business conduct and about making a distinction
between personal and corporate funds in the
management of an organisation.
The definition is drawn from the Gandhian principle
of trusteeship and the Directive principles of the
Indian Constitution.
Corporate Governance is viewed as business ethics
and a moral duty.
 PARTIES IN CG

• Parties involved in corporate governance include the

regulatory body (e.g. the Chief Executive Officer, the
board of directors, management, shareholders and
Auditors).
Key Elements Of CG
Key elements of good corporate governance principles
include:
Honesty
Trust
Integrity
Openness
Performance orientation
Responsibility
Accountability
Mutual respect
Committed to the organisation.
Benefits of CG
Good CG Practices results in:
Improved brand image and reputation
Better social acceptance
Better impact on customers
Government support
Ability to attract more investors
Better valuation.
Key Principles
Good Governance is about:
Effective Leadership
Sustainability
Corporate Citizenship.
Recommendations from The King
III
Forefront of Corporate Governance internationally
achieved by:
Reporting annually on how it positively or negatively
affected the economic life of the community
How they intend to enhance the positive and eradicate
any negative impacts.
Effective Leadership
Define strategy
Provide direction
Establish ethics and values.
Sustainability
New Requirements introduced
Annual integrated reports an impact in economic,
environmental & social spheres
Statements by Audit Committee to board on
effectiveness of internal financial controls
Strategic roles of IT
Internal Audit as strategic function
Governance of Risks through formal Risk Assessment
Process.
Issues involving Corporate
Governance Principles
 Internal controls and internal auditors
 The independence of the entity’s external auditors and the quality of
their audits.
 Oversight and management of risk
 Oversight of the preparation of the entity’s financial statements.
 Review of the compensation arrangements for the chief executive
officer and other senior executives
 The resources made available to director's in carrying out their duties
 The way in which individuals are nominated for positions on the
board
 Dividend policy.
 Winning Growing
Employees Investors

Delighted Happy
Customers Society

Satisfied
Trusted Government
Supplier. and
Regulations