CORPORATE
GOVERNANCE
CODE
Presented by: Gaoat- Guillen- Mercurio- Tolentino- Alcayaga
CORPORATE GOVERNANCE
CODE
refers to the set of principles and guidelines
for the directors, executives, and board
members that help promote transparent,
ethical, and effective decision-making within
companies. In other words, it ensures best
practices in the realm of an organization's
governance.
KEY TAKEAWAYS
1. 2. 3.
A corporate governance They are crucial for
code is a set of promoting transparency, Every nation, industry,
guidelines to direct and accountability, and organization has its
govern the conduct and responsibility, awareness, corporate governance
decision-making impartiality, and ethical principles and codes
processes at the top conduct to enhance
disclosed in the
level (i.e., by board investors, shareholders,
company's annual
members, directors, and government, regulatory
reports and public
executives) within a bodies, and lenders'
listings.
confidence in the
company.
organization.
4.
However, the companies are not
mandated to follow these guidelines
even though they are often preferred
by the stakeholders and government.
ACCOUNTABILITY - refers to the obligation of
the board of directions and management to be
answearble for their decisions and actions,
ensuring they serve the best interests of the
company and stakeholders.
RESPONSIBILITY - refers to the duty and
obligation of the board of directors,
managment, and employees to act in the best
interest of the company and stakeholders.
TRANSPARENCY- means that a company
openly shares accurate, timely, and relevant
information with stakeholders, enabling
them to make informed decisions and hold
management accountable
IMPORTIALITY- is a vital governance principle
that ensures fairness, objectively, and equal
treatment of all stakeholders. While corporate
governance that decisions are made free from
bias, favoritism, or personal interest,
particularly by the board and management.
AWARENESS - refers to the knowledge, consciousness, and
understanding of individuals within the organization, particularly the
board and management regarding the impacts of their decisionson
stakeholders and society.
PURPOSE OF THE CORPORATE GOVERNANCE CODE
ETHICAL AND BEST PRACTICE:
Such principles direct the actions of the board members,
directors, and executives to facilitate and develop a fair and
robust corporate governance model.
TRANSPARENCY:
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ACCOUNTABILITY:
These guidelines establish mechanisms to ensure accountability
among executives and board members, clearly defining their roles
and responsibilities pertaining to decision-making and
performance.
SHAREHOLDERS’S TRUST:
When the company has an ethical framework and discloses every
financial and non-financial matter of the business to the
shareholders, their rights and trust in the firm are justified.
Compliance with Law:
Adherence to corporate governance codes ensures legal and
regulatory compliance, helping companies avoid legal issues
and contributing to overall stability and credibility.
Long-term Value Creation:
It emphasizes sustainable and best business practices to
encourage stakeholder inclusiveness and foster a responsible
business culture.
IMPORTANCE OF CORPORATE GOVERNANCE CODE
Promotes ethical leadership and responsible corporate behavior.
Ensures transparency in decision-making and financial reporting.
Strengthens accountability of the board and management.
Protects the rights and interests of shareholders, including minority
shareholders
Enhances the efficiency and effectiveness of the board of directors
Encourages compliance with laws, regulations, and industry standards
Builds trust and confidenceamong investors, regulators, and the public.
Helps identify and manage corporate risks more effectively.
Supports long-term sustainability and corporate social responsibility (CSR).
Improves the company’s reputation and attractivenes to investors.
Contributes to national economic growth* and market stability
RIMBERIO
AGYAMAN!
