- Enhances the reputation of the organisation - Enhances empowerment of all stakeholders - Improves efficiency - Encourages innovation - Enhances competitive advantages - Meets financial, legal and statutory obligations
In its narrowest sense, corporate governance refers to the formal system of accountability of the Board of Directors of an organisation to its shareholders. In its broadest sense, corporate governance refers to the formal and informal relationships between the corporate sector and its stakeholders, and the impact of the corporate sector on society in general.
With reference to this:
3.1 Explain how corporate governance is related to the strategy of an organisation.
3.2 Evaluate the benefits of effective corporate governance.
The points below must be developed for question 3.2
The benefits of business governance can be tabulated as follows:
- Increases the value of the organisation
- Nurtures a spirit of enterprise
- Gives confidence to the market
- Enhances the reputation of the organisation - Enhances empowerment of all stakeholders - Improves efficiency
- Encourages innovation
- Enhances competitive advantages
- Meets financial, legal and statutory obligations.
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