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The Importance of Good Corporate Governance

- November 18, 2017
The Importance of Good Corporate Governance
Corporate Governance
Corporate Governance is one way to manage a company for the better. Good Corporate Governance or Good Corporate Governance (GCG) is the underlying principles of a process and mechanism of a company to improve the success of a business or business and accountability to realize the company in the long term and still pay attention to the interests of corporate stakeholders based on the law- laws and ethics in running a business.

In essence, Corporate Governance is a method for managing a company to regulate a sovereign state to keep its laws and policies at the company to its employees, whether from the highest or lowest level.

#Principle Good Corporate Governance


Corporate Governance Mechanism is very influential on the determination and achievement of an objective and the establishment and development of cultural systems work environment Persero (the Company). For the company, the implementation of corporate governance is the main policy to be able to realize the vision and mission of the company.

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In an effort to keep all stakeholders and can increase the value for shareholders, so far the company has applied Good Corporate Governance or good corporate governance in all its activities and business. A company is committed to always behave and show business ethics in accordance with applicable rules and policies.

Well, for clarity, please note the principle of good corporate governance below with fellow.


1. Shareholder recognition is one of the keys to maintaining stock prices in a company. Good Corporate Governance is to strive to ensure that all shareholders can vote at a rally and be allowed to participate.

2. Stakeholder interest must also be recognized by Corporate Governance which can specially take the time to be able to handle non-shareholder stakeholders to assist the company and can establish positive relationships with the community and the press.

3. The Board's responsibilities should be clearly defined to the majority shareholder in order to clarify all applicable policies. All members of the board should be on the same page and have a similar vision for the future of a company.

4. Business Transparency is key to promoting shareholder confidence. This means that financial records and future earnings reports must all be clearly stated without a "Creative" enlarger or accounting. Falsifying a company's financial records may cause the company to become a ponzi scheme, and will be dealt with accordingly.

Well that's the reason for the importance of corporate governance that must be considered. Hopefully with this article can help and add our insight everything and can be useful for your company. Please share this article as one of the support for ENQUER Business in order to present various articles or other information in the future. ☺

 

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