Question

Using a diamond company as an example, discuss what are the corporate governance tools it has. Among these, which are effective for the company? Which are not?   

Answer 1

CORPORATE GOVERNANCE:

Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals.

Good corporate governance is a well-defined and enforced structure that works for the benefit of everyone concerned by ensuring that the enterprise adheres to accepted ethical standards, best practices and formal laws.

CORPORATE GOVERNANCE TOOLS:

• Efficient use of resources.
• Value addition to product.
• Maximizing customer satisfaction.
• Creation of Wealth for the business.
• Developing a value oriented organization.
• Develop ethical working standards.
• Management of Risk.
• Cooperation with Stakeholders
• Appropriate Disclosure of Information and Transparency

By taking the example of a Diamond Company, almost all the corporate governance tools are effective for company.