Question

A company’s public communication on governance frequently discusses the Board of Directors and shareholder investment. Discuss...

A company’s public communication on governance frequently discusses the Board of Directors and shareholder investment. Discuss a governance topic a company publicly discusses which is not required by a legal, financial or regulatory requirement. Why would a company’s management invest in the governance topic? Who benefits from it?

Homework Answers

Answer #1

Corporate governance includes the measures that the company has taken in order to ensure that the ethical principles are being followed. It also ensures that the company has implemented the strategies that were planned by them. The communication of these is not a legal or financial or regulatory requirement. A company invests in governance topic as it is the basic requirement of any organization to follow governance laws. The image of the company in the market will improve if it follows the governance principles and abides by it. The company will only benefit from it.

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