Good Governance

Fairness
Accountability
Transparency
 Is the set of procedures designed to ensure hat
the company is managed in the interests of the
shareholders.
 is the system by which businesses are directed
and controlled. (Cadbury Report, 1991)
 Good corporate governance is a key factor in
underpinning the integrity and efficiency of a
company.
 Poor corporate governance can weaken a
company’s potential, can lead to financial
difficulties and in some cases can cause long-
term damage to a company’s reputation.
 May be measured by the equity theory.
 The Equity Theory states that people assess
how fairly they have bee treated according to
two key factors – outcomes and inputs (their
own outcomes or inputs vs others’ outcomes
and inputs).
 refers to equal treatment, for example, all
shareholders should receive equal
consideration for whatever shareholdings
they hold.
 means that employees will perform a job,
take corrective action when necessary and
report upward on the status and quality of
their performance.
 refers to the obligation and responsibility to
give an explanation or reason for the
company’s actions and conduct.
 The board should present a balanced and
understandable assessment of the company’s
position and prospects;
 The board is responsible for determining the
nature and extent of the significant risks it is
willing to take;
 The board should maintain sound risk
management and internal control systems;
 The board should establish formal and
transparent arrangements for corporate
reporting and risk management and for
maintaining an appropriate relationship with
the company’s auditor, and
 The board should communicate with
stakeholders at regular intervals, a fair,
balanced and understandable assessment of
how the company is achieving its business
purpose.
 means openness, a willingness by the
company to provide clear information to
shareholders and other stakeholders.
 For example, transparency refers to the
openness and willingness to disclose financial
performance figures which are truthful and
accurate.
 Transparency ensures that stakeholders can
have confidence in the decision-making and
management processes of a company.
 is behaviour that people consider to be
correct, polite, and respectable in connection
with business.

“I was treated with decorum and respect

throughout the investigation.”
 Everything from behaviour and dress to task
execution is defined under a business’s
protocol.
 These guidelines are typically defined for
each employee upon being hired.
 Training
 Basics
 Benefits
The purpose of the Business Practices
Guidelines is to
 Express the intentions and guide its
departments/units in the conduct of business
with both business constituencies and the
general public;
 Provide additional clarification and guidance
within a framework in which business
practices decisions are made by the
managers/owners/shareholders at all levels.
 is the marketing of products to organizations
for the direct use of the product in the
production of another product, for use in the
general daily operations of the organization,
or for reselling the product to other
businesses or the final consumer.
 Bookkeeping in a business firm is the basis of
the firm's accounting system.
 Bookkeepers are responsible for recording
and classifying the accounting transactions of
the business firm and techniques involving
recording those transactions.
 A record of business used as the basis to
analyze and record transactions. Some
examples of this are check stubs, receipts,
and invoices.
An organization’s code of ethics is a formal
document that states an organization’s primary
values and the ethical rules it expects
employees to follow. It is good to be reminded
that an enterprise also has its responsibility to
its:
 Investors and owner, for fair returns on their
investments.
 Customers, for safe products.
 Suppliers, for fair deals; and
 Employees, for decent wages.
 Look for a sample of Code of Ethics related to
business.
 Study what you have found and be ready for a
sharing next meeting.
 Research about the classical philosophies
with implications or connection with business
practices and principles. Put it on a short
bond paper.