Principles of Good Corporate Governance

Corporate Governance pic
Corporate Governance
Image: smallbusiness.chron.com

From 1993 to 2005, James Kasim served as the Senior Manager at Ernst & Young LLP, where he handled both the Real Estate and Hospitality Group and the Retail, Distribution and Consumer Products Group. During his tenure with the company, James “Jim” Kasim also applied his knowledge on corporate governance.

Corporate governance refers to a framework of rules and practices which balance the shared interests of the company’s stakeholders. Principles of good governance include:

Leadership – Companies should be led by an effective board, with each member purposely aiming for the fulfillment of long-term and short-term business goals. The board of directors also acts according to the interests of the company.

Fairness – Good governance strives for equality among all shareholders and stakeholders. Stakeholders include employees, public officials, and the community at large. Fair treatment and consideration should be given to all involved parties, regardless of their shareholdings.

Transparency – The board and other shareholders are also responsible for informing stakeholders of all company activities. Full disclosure on company information and performance gives stakeholders confidence in management.

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