CAMPILLO, Lovely Mica O. January 29, 2014
BSBA-2A Professor. Magat
GOVERNANCE AND SOCIAL RESPONSIBILITY
1. Define Corporate Governance (CG). Give at least three definitions of CG.
* Corporate governance refers to the system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of the many stakeholders in a company - these include its shareholders, management, customers, suppliers, financiers, government and the community. Since corporate governance also provides the framework for attaining a company's objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure.
* Corporate governance refers to the host of legal and non-legal principles and practices affecting control of publicly held business corporations. Most broadly, corporate governance affects not only who controls publicly traded corporations and for what purpose but also the allocation of risks and returns from the firm’s activities among the various participants in the firm, including stockholders and managers as well as creditors, employees, customers, and even communities.
* A system of structuring, operating and controlling a company with a view to achieve long term strategic goals to satisfy shareholders creditors, employees, customers and supplies, and complying with the legal and regulatory requirements, apart, from meeting environmental and local community needs.
2. Name the different stakeholders in Corporate Governance and state their respective concerns.
Roles of the Stakeholders
The Company places importance on all groups of its stakeholders regardless of whether they are internal stakeholders such as employees and the management of the Company and its subsidiaries, or external stakeholders such as shareholders, customers, competitors, and creditors. The Company is...