Corporate Governance relates to the relationships between Management, Board of Directors, Controlling & Minority Shareholders and other Stakeholders. It aims at increasing their access to outside capital.
“Corporate Governance is concerned with holding a balance between economic and social goals and between individual and communal goals. The aim is to align as nearly as possible the interests of individuals, corporations and society.”
Sir Adrian Cadbury, World Bank Report
The importance of Corporate Governance lies in its contribution to business prosperity and accountability. Investment decisions taken by the local and international investors are impacted by governance practices. In order for companies to compete globally, they have to follow enhanced Corporate Governance standards. This is a major factor towards making capital markets transparent, protecting rights of minority shareholders and attracting / retaining foreign investment.
CAGROW Corporate Governance framework shall support and promote the following four (4) pillars of governance as a good practice followed in industry:
Responsibility
Demonstrate a behaviour that sets, promotes & implements right culture, values and tone.
Accountability
Ensure that Management is accountable to the Board and the Board is accountable to the Shareholders.
Fairness and Integrity
Consistently apply moral and ethical standards to protect Stakeholders interests.
Transparency
Ensure timely and accurate disclosure on all material issues including information relating to financial, non-financial and operational matters.
CAGROW provides services to develop corporate governance guidelines, framework and system to improve management and protect stakeholder interests.
The service specially helps small and family owned businesses to improve governance to industry standards.
“Governance and leadership are the yin and the yang of successful organisations. If you have leadership without governance you risk tyranny, fraud and personal fiefdoms. If you have governance without leadership you risk atrophy, bureaucracy and indifference.”
Mark Goyder (Director of Tomorrow’s Company)
