Corporate Governance & Ethics in Finance
Corporate Governance & Ethics in Finance 1. Definition: Corporate Governance refers to the system by which companies are directed and controlled. It involves the relationships among a company’s management, its board, its shareholders, and other stakeholders. Corporate governance provides the structure through which the objectives of the company are set, the means of attaining those objectives, and monitoring performance. Ethics in Finance refers to the moral principles and standards that guide behavior in the financial world. This includes integrity, honesty, transparency, fairness, and accountability in financial decision-making and transactions. 2. Importance and Advantages of Corporate Governance and Ethics in Finance: Accountability: Ensures management is accountable to stakeholders. Transparency: Builds trust through accurate and open disclosure of financial information. Risk Management: Identifies, evaluates, and mitigat...