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Writer's pictureValeria Nistor

Why Corporate Governance is important?


Every listed and state-owned company is supposed to have a system of corporate governance that ensures that the company acts in the best interests of all stakeholders. What brings a proper implementation of corporate governance to companies?

  1. Ensuring integrity and ethical behaviour in the company (not only for employees, but also for Board)

  2. Ensuring that all shareholders are treated equitably

  3. Ensuring that the board has sufficient relevant skills and understanding to review and challenge management’s performance and actions and to provide oversight and advice to management when needed

  4. Ensuring full disclosure and transparency to all stakeholders of the company, including the reporting of financial and non-financial information.

Considering and balancing the interests of all stakeholders, including those to whom the company has legal, contractual, social, and market driven obligations, as well as to non-shareholder stakeholders, including employees, investors, creditors, suppliers, local communities, customers, and policy makers.

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