Corporate Governance - Introduction, Meaning, Definition, And Principles and Importance of OECD

1. Alice Mary
1St M. Com
Corporate Governance - Introduction, Meaning, Definition, And Principles and Importance of OECD
Under the guidance of
Sundar B. N.
Asst. Prof. & Course Co-ordinator
GFGCW, PG Studies in Commerce
Holenarasipura

2. Contents :-
1) Introduction
2) Meaning
3) Definition
4) Principles of Corporate Governance
5) Importance of OECD
6) Conclusion
7) Reference

3. Introduction:-
In recent years the word Corporate Governance has received greater importance Corporate Governance refers to
the relationship between Owners, directors and managers it covers issues like legal rights of Investors. Corporate Governance is an
increasingly significant aspect of business and oganisational management.
Meaning :-
Concept of Corporate Governance has been used in different perspective. It started as maximising shareholders.
And Corporate Governance has been defined as many different ways to scholar and agencies. It is not just good managaement such
broader, it includes fair, efficient, transperent and instration to meet well-defined objectives of organisation.

4. Principles of Corporate governance :-
1). The Ethics
2). Accountability
3). Trusteeship
4). Empowerment
5). Fairness to all stake holders
6). External audit
7). Oversight
8). Whistle blower policy
According to the Cadbury Committee “ Corporate Governance is the system by which companies are directed and controlled”.
Definition :-

5. • The Ethics :-
A company must observe ethical standards deviation from ethical principles organized culture and
underminess stake-holder value.
• Accountability :-
It signifies that the board of directors are accountable to share-holders and management is accountable to
the board of directors.
• Trusteeship :-
There exists the principle of trusteeship on board of directors who must act to protect and enhance share-holders
and stake-holder value.

6. • Empowerment:-
It unleashes creativity and innovation throughout the organisation by truely wasting decisions.
• Fairness to all stake-holders :-
It involves a fair and equitable treatment of all stake-holders who participate in the corporation governance
structure.
• Oversite :-
It means the existence of a system of cheques and balances and facilitate timely management.

7. importance of organisationof economiccorporation and development(oecd):-
The name purpose of the OECDis to improve the Global Economy and promote World trade. The importance of OECD
are mentioned below:-
• It provides an outlet for the Governments of different countries to work together to find solution to common problems.
• It is important to have a Well-informed view on this issues and to communicate them properly to the public.
• Globalisation has also been signaled as the cause of higher income disparties.
• It is true that in more competitive markets, the less prepared individuals and regions will suffer.
• It is necessary to equip this people and regions with the instruments to make the best out of it.

8. Conclusion:-
The annual financial report commonly contain a statement on Corporate Governance. So it is useful to have an awareness of
what this involves. This has important implication for interpriting the financial statement; a company with a weak system of Corporate
Governance will provide greater opportunities for the manipulation of financial statement, with adverse consequences for users.

9. Bibliography :-
1) Importance of OECD (Retrieved from, https:||www.oecd.org>surveys>ro....)
Date :- 12|04|2021
2) Principles of Corporate Governance (Retrieved from,
https:||nscpolteksdy.ac.id>files....
https:||www.nottinghamshire.gov.uk>....)
Date :- 12|04|2021

10. Thank You