Corporate Governance
corporate governance deals with the ways in which suppliers of finance to corporations assure themselves of getting a return on their investment
Corporate governance is the system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, mangers, shareholders and other stakeholders and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company objectives are set and the means of attaining those objectives and monitoring performance”
Corporate governance is about promoting corporate fairness, transparency and accountability
Vigilance at present
“When the mystics showed the moon, the ignorant looked at the fingers”, an old saying goes like this. This is what exactly has happened in the case of ‘Vigilance”. ‘Vigilance’ is seen as propriety of vigilance departments and vigilance officers. ‘Vigilance’ is not vigilance department, nor what all that vigilance department or vigilance officers do for that matter. The fact that the concept of so called vigilance departments and vigilance officers were evolved only to check whether everyone in his job, is performing his vigilance function or not, has been lost sight of.
The Research paper on THE IMPORTANCE OF CORPORATE GOVERNANCE IN AN ORGANISATION, AND ITS IMPACT ON KEY STAKEHOLDERS
ABSTRACT This research is centered on the Importance of corporate governance in an organization and its impact on key stakeholders. Using, Ghana Water Company Limited (GWCL) as the case study. In the research, data was gathered from a cross-section of the stakeholders of the company on the presence of effectiveness, participation, transparency and equity in the corporate governance system of the ...
Vigilance is an integral part of every action that the human being does. It tooks so long a period for Vigilance to regain its recognition of being a function. In the recent times, Vigilance is being considered as a management function rather than a tool in the hands of the management.
Vigilance, in the present context can be explained as follows:
“Vigilance need not be a dirty word associated always with investigation or enquiry, charge-sheets and punishments alone. It is not something that is apart, different, or alienated from the main organization or managerial effort. It is, in fact, an inalienable and integral part of management function. As a strong and unfailing blend with any management function, it can be a positive, constructive and catalytic influence by:-
(a) Raising storm signals regarding complexities or neglect of procedures
(b) Placing signposts for the path to purposeful and effective achievement of objectives
(c) Devising correctives and generally acting as a prophylactic agent
(d) Eliminating the corrupt and the crooked.
Vigilance as it actually mean, is an inherent part of any activity that is undertaken in the universe. Every individual in his own discipline has to ensure that a reasonable care is taken of his assets and resources and that they are not squandered away for other than legitimate work and rightful purposes. An incomplete perspective on this count would lead to undesirable result in the performing one’s role. The quality circles (QCs) and the Total Quality Management (TQMs) are the recent jargons in the corporate world. The QCs and TQMs, in reality, call for eternal vigilance at all levels, in order to ensure that the systems and procedures laid down in the quality manuals are scrupulously followed. The checks and supervisions as stipulated in such quality manuals amounts to taking precaution or caution for carrying out the assigned duties and responsibilities within the frameworks of the organization, which perhaps, in a broader sense is termed as Vigilance. These concepts have been accepted and well recognized without knowing the fact that what operates such concept is nothing but eternal vigilance.
The Business plan on Information Systems And Management: Decision Making In Business Organizations
Introduction:Barletta’s Fine Foods (BFF) Ltd operates from King’s Norton in south Birmingham and supply food products to various retail outlets and restaurants. The company has performed well in the past and has ambitious growth plans for the near future, however there are problems in various functional departments of the company that have hindered its growth. Top management is ...
While policing is intended to catch those who do wrong things the vigilance function is to catch those who are doing the things wrongly, intentionally. While the job of policing is not to catch someone who does good things, it is the job of vigilance function to catch someone doing right things. Every individual can do this function and catch himself or herself for doing things rightly or wrongly and then others too.
Therefore, vigilance is a function. It is a core management function to be performed by everyone simultaneously along with every other function that one performs.
Interface between Corporate Governance and vigilance
Operating internal controls :
The interface between corporate governance and vigilance is the internal controls through the systems. Systems are nothing but the combination of rules, regulations and procedures. Having such system in a corporation is not sufficient but following such a devised system is more important to see the results. Vigilance as a function, by each individual, ensures that not only the systems are in place, but also they are followed to see the corporate growth, as may be seen below:
The failure on the part of individual to perform the function of vigilance invites intervention of the so-called vigilance officers or the vigilance department. Avoidance of such failures and effective performance of such vigilance function alone, in the corporate world is called as corporate governance. Therefore, corporate governance is operated through the operating system, which is none other than Vigilance. As in the computer every software runs only on the operating system, likewise, in performing every function in the corporate world, may it be managerial or by the board or by anybody for that matter, it has to be performed only with vigilance as the operating system. That is what all that corporate governance means.
The Term Paper on Enhancing Corporate Accountability Stakeholders Governance Stakeholder
What is meant by corporate "accountability"? it has been proposed that, to enhance corporate accountability and profitability, corporate stakeholders should play an active role is the governance of the corporations in which they have an interest. This would also safeguard the interests of the stakeholders. What are the arguments for and against this view? Discuss some possible ways whereby ...
Let there be systems and procedures. Let them be followable. If not, let them be amended from time to time on a real time basis, as required. Let there be a meticulous observance of systems and procedures at all stages. Let there be a common prudence and alertness prevail while following the systems and procedures. There lies the vigilance function.
Therefore, any corporate function is operated along with the vigilance function is destined for corporate growth and that is what is expected of from good corporate governance.
It is, therefore, in the proper admixture of every management function and vigilance function in right perspective, lies the path for good corporate governance. This admixture is nothing but the compatibility of the software (corporate governance) and the operating system (vigilance).
That is how vigilance helps in the good corporate governance as the operating system. Ultimately, the fact remains that eternal vigilance ought to be the essential ingredient for good corporate governance. After all, it is the principle of enlightened self-interest, the basic dharma of the corporate world, which paved the way for the current trend of good corporate governance.