Definitions Of Corporate Governance

1. Introduction

To fully understand the nexus between good governance and prevention of corruption and fraud in workplaces through Corporate Governance, one should first be able to define what corporate governance is, its objectives and the history thereof.

1.1. Definition of Corporate Governance

Various scholars, in their endeavours to understand and add value to the discipline of corporate governance have defined corporate governance differently. For instance, in this essay, I have decided to use the definition by (Wiese, 2014, p. 2) who had two type of definitions which is a narrow – and a wider definition.

In his narrow definition, Tobie Wiese said that Corporate Governance is simply the practice by which companies are managed and controlled.

Risk management – board of directors is a board made up entrepreneurs and the vast of skills and knowledge, they possess the business mind sets and characteristics. Promote ethical and responsible decision-making this comes with identifying key stakeholders and manging relationships. Anticipate potential harm and threats and environmental safety.

Communicating effectively with shareholders – communication is the most effective tool in a company, as the board, the duty and responsibility is communicate key information to the employees and investors. The Board should show transparency and quality. Board themselves are the communication media or tool for communication because they are the ones that need to communicate to the investors and back to the company.

Furthermore, on top of the roles of the Board, there are also functions of the Board. Below are some few functions of the

This comes with the responsibility of running the risk, the company reports all failures and success to the board in time and transparent manner. It also take account of social responsibility of the community people and ethical conducts.

8. Performance Assessment

9. Whistle-Blowing

10. Corporate Fraud and Audit

11. Corporate Social Responsibility

Corporate Social Responsibility (CSR) is the management concept that denotes a company’s sense of making business and profit with a conscious mind of sustainable development (Wiese, 2014, p. 182). This means that a company should bare the knowledge of making its business without putting harm to the environment and its future generation, not only that but with the economic and social aspects. Furthermore, Corporate Social Responsibility (CSR) incorporates corporate citizenship and sustainability, this means that companies are not only financial and economic institutions, and rather they should focus on sustainability. Sustainability focuses on the pillars of sustainability, economic prosperity, environmental equity and Social justice.

Moreover, it has

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