Question

"why company management matters". In an essay refer to lesson learned form gustav Schulenburg topic regarding the implementation of Corporate Govenance.

Answer 1

Corporate governance is about making it possible for companies to accomplish their targets, to manage risks and to ensure compliance. Good corporate governance requires a set of guidelines outlining the relationship between a company's owners, management and board of directors and affecting how the organization operates.

Of course good management is essential to a company's service. Yet administrators need guidance to make activities a priority and distribute funds. It is the board of directors that is the key agent for corporate governance: shareholders give the board a mission, translate the mission into concrete elements of policy, and then provide management guidance the makes it happen.

When the board does all that, it takes into account two factors: 1) the plan must be informed by enforcement – that is, the board depends on good corporate governance to ensure that it complies with the rules; and 2) the board assesses the risks involved in the execution of the plan, sets the risk tolerance of the business and then uses the corporate governance mechanisms, such as the audit committee and the internal audit committee.

Corporate governance is the systems and procedures for organizational management and regulation. This is also about management partnerships, board of directors, shareholder rights, minority shareholders and other stakeholders. Open to public disclosure of information, high transparency and accountability are key elements of best corporate governance which strive for corporate and social sustainability. Good corporate governance is required to prevent mismanagement to allow businesses to function more effectively, enhance access to capital, reduce risk and protect stakeholders.