Good Corporate Governance leads to a successful company. This includes building and guiding their people the best they can. Provide equality to shareholders and stakeholders. To have confident and strong people is a high priority in GCG because a company faces problems also like fraud, etc. Through effective GCG a company can overcome such problems.
Good Corporate Governance giving a stakeholders the will to freely communicate their concerns about illegal or unethical practices of the Management Board. GCG also helps companies deliver long-term corporate sucess and economic growth. GCG is important because it leads to positive performance and a sustainable business overall.
Thank you Ms. Ronelyn, I'm interested in the term of "freely communicate their concerns about illegal or unethical practices" or in another word that GCG will accommodate the "whistle blowing system" to support corporate for always put priority in ethical behaviour.
Good corporate governance is important in ensuring that the entity is free from risks, if not, risks are mitigated, and also helps the board, stakeholders, shareholders and management to know their duties and responsibilities within the company. Through the help of GCG, management ensures that the entity's value is enhanced as it competes in an increasingly global market place.
GCG is about building our business work stronger while following by the rules. The primary function of GCG is to make sure that a business strategy is made effectual by the company’s workers and executives as well as to the external parties. Good corporate governance bring up a culture of integrity and leads to a positive execution and lasting business. GCG send message to the public that a company is well managed and that the attentiveness of management are aligned with other stakeholders. As such, it can give the businesses with a competitive advantage. Essentially, GCG is present to increase the accountability of all individuals and teams within your company, working to avoid error before they can even occur.
There isn’t a perfect and best corporate governance practices but they all have the same in common - they are built on a foundation of transparency, accountability, and trust. Being honest and open about process and operations counts a great deal. Both shareholders and consumers want to see companies operating with integrity. However, we can’t deny that corruption can still happen amongst the directors specially when the temptation presents itself. Hence, drafting a proper communication plan between shareholders and stakeholders can ensure that both parties are on the same page about the organization’s best practices and still practicing transparency within the organization. Moreover, control is the word to note here. Aside from communication, gaining and maintaining control over an organization’s security has a positive effect on many other areas of corporate governance policy, including risk management, financial reporting, board performance and how the company chooses to conduct itself.
As companies implement stronger corporate governance, people also find ways to commit fraudulent activities and devise advanced schemes. I believe that the way to implement the best corporate governance is to strengthen their controls in mitigating fraud risk factors. The company must have good risk management techniques to become one step ahead, mitigate, quickly address the problems, and even prevent these fraudulent schemes. Of course, the management's integrity also plays an important role in their cooperation to properly implement the best corporate governance. In this way, companies can meet the expectations of both their shareholders and stakeholders, and become one step closer to success.
Thank you Ms. Rotsen, risk management is also the extention of Good Corporate Governance mechanism. Integrity is also core of corporate value that need to be maintain internally.
According to Good Governance and Social Responsibility 1st Edition p. 15, 2015 by Biore, Gonzales, Caparas et al. The fundamental objectives of corporate governance are: (1) Improvement of Shareholder Value. Shareholder's value can be improved by making a pre-commitment to build better relations with primary stakeholders. Better relations will lead to an increase in shareholder's wealth since this would help the firms expand and develop intangibles which the firm could capitalize on and in turn become a source of their competitive advantage. Good reputation is one example to these intangibles which could largely predict the future of the business. Better relations with employees engender employees' commitment. Good relations with customers and suppliers complete the full circle of strong alliances. (2) Conscious Consideration of the Interests of Other Stakeholders. When a company meets the objective of increasing the shareholder value, it will have greater internally-generated resources in improving its commitment in meeting its environmental, community and social obligations. It can pay taxes well; reward, train and retain key staff; and enhance employee satisfaction. A key focus area is a company's human capital, which is a lead indicator of success (Principle 1, Corporate Governance Principle, ADB and Hermes Pension Management).
Thank you Ms. Angelie, yes I Agreed that maintaining commitment with all stakeholders especially primary stakeholders bringing beneficial in the long run, good reputation in return.
The presence of GCG is essential to an organization. Good corporate governance requires a system that could assist in building shareholder's confidence, and ensuring that all the stakeholders are treated equally. However there are issues about corporate governance which could hamper the success of an organization. Such as fraud, corruption, etc.
Thank you Mr. Immanuel, from this perspective we notice that one aspect that important for shareholder's confidence is system , an integrated system that reliable for decision making
Many abuses and injustices happened in the company before- both in the side of shareholder and stakeholder. But with the rise of Good corporate governance and together with the corporate social responsibility, slowly, we can see changes. A change that we can say that is good for a better success. Directors/owners didn't only aim for a profit maximazation, but consider the welfare of stakeholders (includes investors, community, environment, employees, and etc). Through good corporate governance many issues had been resolve and the roles of every person in the company has been clearly defined. However, we cannot change the fact, that some issues are still present that leads again to injustices. Just like fraud and corruption. This is the time to know the role of board of directors in which they shall implement an effective ethical and legal standard and limitations to keep it in the long run. This ethical and legal standard aims to ensure the protection of every individual that are part in a certain corporate business. Thus, corporate governance includes principles of transparency, accountability, and security. Failing to have a good corporate governance, can lead to the collapse of the company and significant financial losses for shareholders.
In order for a business to grow, the business needs to keep doing new things, innovating, improving or developing new projects and attracting stakeholders, including the customers. The business must determine who the projects stakeholders are, by understanding the role of different stakeholders, such as internal versus external, in the project and identifying project-related goals and expectations.
A well structured corporate governance can lead the company to a brighter future because this will be their basis to strive hard to achieve their ultimate goal. To have a good corporate governance requires confident, prepared, and brave shareholders and stake holders because having a company will also accompanied by a risk and issues like fraud and the like. So, every company must establish an established corporate governance to manage those said issues.
No matter how large and profitable a company is, fraud may still exist. A fraud can be done by a mere staff and/or by the management. As a matter of fact, the higher the position of the personnel who commits fraud, the greater is the impact to the company's financial performance. With this, I personally think the best corporate governance practice to minimize or avoid fraud is to have a good corporate structure and separation of duties. For example, the cashier should not be the same person as the company's accountant who prepares the financial report in order to avoid the manipulation of data. On the other note, an Auditor usually directly reports to the Board of Directors of the company if upon assessment of internal controls , their findings suggests that a certain division is not operating effectively or that the division's report do not reconcile with the supporting documents. Although Auditors are not expected to possess the knowledge of a forensic accountant to detect fraud, they still play a huge part in assessing the company's internal controls, so an internal and external auditing must be done at least once a year as part of the corporate governance practice to protect the investors and stakeholders' interest.
An effective and strong corporate governance do help in cultivating a company culture of integrity that leads to positive output and business sustainability. Essentially, its existence helps to increase the individuals accountability and the organization as a whole. By this means it avoids mistakes before they can even occur.
Thank you Ms.Mae for another insight empowerment of company culture, that will be the keyword, we expecting the company culture that can be measured and reflected in day to day operation
Good Corporate Governance application in an organization is one way of containing fraudulent practices in a corporation especially if companies intensify their utilization of fraud risk management in which monitor and assess the level and existence of organizations anomalies.
Thank you Ms.Edna, so the implementation of risk management or in this case fraud risk management will effectively or at least to reduce the probability of person committed fraud.
Corporate Governance mechanism as we know is to satisfy either collectively stakeholders and expectations of shareholders, but in reality there's still exist fraud and even worse corporate fraud scheme is more structured. How do you think the best Corporate Governance practice to overcome this barrier?
Management commitment plays a great role in adapting and implementing good corporate governance. I think companies can overcome barriers such as corporate fraud if the management will enshrine the best corporate governance practices in the core values of the company. The foundation of corporate governance always starts with the management, if the management displays strong commitment to corporate governance, its employees and other stakeholders will follow.
Fraudulent people exist in this world, whether we like it or not, a company's management just have to stake its roles on preventing it from happening to the corporation in the first place. A good order in corporate governance have rigid internal control of the whole company management; stakeholders and shareholders must establish strong implementations to safeguard the company's assets, ensure the confidentiality of its accounts, and detect fraud as soon as it arises. However, this just reduces the risk of fraud, the management can only monitor its shareholders, stakeholders, and employees at the highest level of tracking their performance and activities internally and/or externally. As an enabler of good corporate governance, you also got to monitor financial balances from time to time, or maybe hire trustworthy experts in the field. Moreover, a positive business culture also minimizes the risk of fraud: direct organization, fair employment practices (emphasis on employee wellness), plausible and achievable company goals, positive work environment, and great social connections-these do not only establish positive business culture but also encourage better employee performance.
The Board of Directors and the top management should set the tone at the top, meaning, they should uphold integrity and ethics themselves to create an ethical atmosphere in the workplace. This way, employees will be more inclined to uphold integrity and ethics also because of the example set by their superiors. This is an effective practice to counter fraud within the organization.
Good Corporate Governance leads to a successful company. This includes building and guiding their people the best they can. Provide equality to shareholders and stakeholders. To have confident and strong people is a high priority in GCG because a company faces problems also like fraud, etc. Through effective GCG a company can overcome such problems.
Good Corporate Governance giving a stakeholders the will to freely communicate their concerns about illegal or unethical practices of the Management Board. GCG also helps companies deliver long-term corporate sucess and economic growth. GCG is important because it leads to positive performance and a sustainable business overall.
Thank you Ms. Ronelyn, I'm interested in the term of "freely communicate their concerns about illegal or unethical practices" or in another word that GCG will accommodate the "whistle blowing system" to support corporate for always put priority in ethical behaviour.
Good corporate governance is important in ensuring that the entity is free from risks, if not, risks are mitigated, and also helps the board, stakeholders, shareholders and management to know their duties and responsibilities within the company. Through the help of GCG, management ensures that the entity's value is enhanced as it competes in an increasingly global market place.
GCG is about building our business work stronger while following by the rules. The primary function of GCG is to make sure that a business strategy is made effectual by the company’s workers and executives as well as to the external parties.
Good corporate governance bring up a culture of integrity and leads to a positive execution and lasting business. GCG send message to the public that a company is well managed and that the attentiveness of management are aligned with other stakeholders. As such, it can give the businesses with a competitive advantage.
Essentially, GCG is present to increase the accountability of all individuals and teams within your company, working to avoid error before they can even occur.
There isn’t a perfect and best corporate governance practices but they all have the same in common - they are built on a foundation of transparency, accountability, and trust. Being honest and open about process and operations counts a great deal. Both shareholders and consumers want to see companies operating with integrity. However, we can’t deny that corruption can still happen amongst the directors specially when the temptation presents itself. Hence, drafting a proper communication plan between shareholders and stakeholders can ensure that both parties are on the same page about the organization’s best practices and still practicing transparency within the organization. Moreover, control is the word to note here. Aside from communication, gaining and maintaining control over an organization’s security has a positive effect on many other areas of corporate governance policy, including risk management, financial reporting, board performance and how the company chooses to conduct itself.
As companies implement stronger corporate governance, people also find ways to commit fraudulent activities and devise advanced schemes. I believe that the way to implement the best corporate governance is to strengthen their controls in mitigating fraud risk factors. The company must have good risk management techniques to become one step ahead, mitigate, quickly address the problems, and even prevent these fraudulent schemes. Of course, the management's integrity also plays an important role in their cooperation to properly implement the best corporate governance. In this way, companies can meet the expectations of both their shareholders and stakeholders, and become one step closer to success.
Thank you Ms. Rotsen, risk management is also the extention of Good Corporate Governance mechanism. Integrity is also core of corporate value that need to be maintain internally.
According to Good Governance and Social Responsibility 1st Edition p. 15, 2015 by Biore, Gonzales, Caparas et al. The fundamental objectives of corporate governance are:
(1) Improvement of Shareholder Value. Shareholder's value can be improved by making a pre-commitment to build better relations with primary stakeholders. Better relations will lead to an increase in shareholder's wealth since this would help the firms expand and develop intangibles which the firm could capitalize on and in turn become a source of their competitive advantage. Good reputation is one example to these intangibles which could largely predict the future of the business. Better relations with employees engender employees' commitment. Good relations with customers and suppliers complete the full circle of strong alliances.
(2) Conscious Consideration of the Interests of Other Stakeholders.
When a company meets the objective of increasing the shareholder value, it will have greater internally-generated resources in improving its commitment in meeting its environmental, community and social obligations. It can pay taxes well; reward, train and retain key staff; and enhance employee satisfaction. A key focus area is a company's human capital, which is a lead indicator of success (Principle 1, Corporate Governance Principle, ADB and Hermes Pension Management).
Thank you Ms. Angelie, yes I Agreed that maintaining commitment with all stakeholders especially primary stakeholders bringing beneficial in the long run, good reputation in return.
The presence of GCG is essential to an organization. Good corporate governance requires a system that could assist in building shareholder's confidence, and ensuring that all the stakeholders are treated equally. However there are issues about corporate governance which could hamper the success of an organization. Such as fraud, corruption, etc.
Thank you Mr. Immanuel, from this perspective we notice that one aspect that important for shareholder's confidence is system , an integrated system that reliable for decision making
Many abuses and injustices happened in the company before- both in the side of shareholder and stakeholder. But with the rise of Good corporate governance and together with the corporate social responsibility, slowly, we can see changes. A change that we can say that is good for a better success. Directors/owners didn't only aim for a profit maximazation, but consider the welfare of stakeholders (includes investors, community, environment, employees, and etc).
Through good corporate governance many issues had been resolve and the roles of every person in the company has been clearly defined. However, we cannot change the fact, that some issues are still present that leads again to injustices. Just like fraud and corruption. This is the time to know the role of board of directors in which they shall implement an effective ethical and legal standard and limitations to keep it in the long run. This ethical and legal standard aims to ensure the protection of every individual that are part in a certain corporate business.
Thus, corporate governance includes principles of transparency, accountability, and security. Failing to have a good corporate governance, can lead to the collapse of the company and significant financial losses for shareholders.
In order for a business to grow, the business needs to keep doing new things, innovating, improving or developing new projects and attracting stakeholders, including the customers. The business must determine who the projects stakeholders are, by understanding the role of different stakeholders, such as internal versus external, in the project and identifying project-related goals and expectations.
A well structured corporate governance can lead the company to a brighter future because this will be their basis to strive hard to achieve their ultimate goal. To have a good corporate governance requires confident, prepared, and brave shareholders and stake holders because having a company will also accompanied by a risk and issues like fraud and the like. So, every company must establish an established corporate governance to manage those said issues.
No matter how large and profitable a company is, fraud may still exist. A fraud can be done by a mere staff and/or by the management. As a matter of fact, the higher the position of the personnel who commits fraud, the greater is the impact to the company's financial performance. With this, I personally think the best corporate governance practice to minimize or avoid fraud is to have a good corporate structure and separation of duties. For example, the cashier should not be the same person as the company's accountant who prepares the financial report in order to avoid the manipulation of data.
On the other note, an Auditor usually directly reports to the Board of Directors of the company if upon assessment of internal controls , their findings suggests that a certain division is not operating effectively or that the division's report do not reconcile with the supporting documents. Although Auditors are not expected to possess the knowledge of a forensic accountant to detect fraud, they still play a huge part in assessing the company's internal controls, so an internal and external auditing must be done at least once a year as part of the corporate governance practice to protect the investors and stakeholders' interest.
An effective and strong corporate governance do help in cultivating a company culture of integrity that leads to positive output and business sustainability. Essentially, its existence helps to increase the individuals accountability and the organization as a whole. By this means it avoids mistakes before they can even occur.
Thank you Ms.Mae for another insight empowerment of company culture, that will be the keyword, we expecting the company culture that can be measured and reflected in day to day operation
Good Corporate Governance application in an organization is one way of containing fraudulent practices in a corporation especially if companies intensify their utilization of fraud risk management in which monitor and assess the level and existence of organizations anomalies.
Thank you Ms.Edna, so the implementation of risk management or in this case fraud risk management will effectively or at least to reduce the probability of person committed fraud.
Corporate Governance mechanism as we know is to satisfy either collectively stakeholders and expectations of shareholders, but in reality there's still exist fraud and even worse corporate fraud scheme is more structured. How do you think the best Corporate Governance practice to overcome this barrier?
Management commitment plays a great role in adapting and implementing good corporate governance. I think companies can overcome barriers such as corporate fraud if the management will enshrine the best corporate governance practices in the core values of the company. The foundation of corporate governance always starts with the management, if the management displays strong commitment to corporate governance, its employees and other stakeholders will follow.
Fraudulent people exist in this world, whether we like it or not,
a company's management just have to stake its roles on preventing it from happening to the corporation in the first place. A good order in corporate governance have rigid internal control of the whole company management; stakeholders and shareholders must establish strong implementations to safeguard the company's assets, ensure the confidentiality of its accounts, and detect fraud as soon as it arises. However, this just reduces the risk of fraud, the management can only monitor its shareholders, stakeholders, and employees at the highest level of tracking their performance and activities internally and/or externally. As an enabler of good corporate governance, you also got to monitor financial balances from time to time, or maybe hire trustworthy experts in the field. Moreover, a positive business culture also minimizes the risk of fraud: direct organization, fair employment practices (emphasis on employee wellness), plausible and achievable company goals, positive work environment, and great social connections-these do not only establish positive business culture but also encourage better employee performance.
The Board of Directors and the top management should set the tone at the top, meaning, they should uphold integrity and ethics themselves to create an ethical atmosphere in the workplace. This way, employees will be more inclined to uphold integrity and ethics also because of the example set by their superiors. This is an effective practice to counter fraud within the organization.