Corporate Governance

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CORPORATE GOVERNANCE –
AN ANALYSIS OF HOW PUBLISHED REPORTS HAVE IMPROVED ITS SIGNIFICANCE

CORPORATE GOVERNANCE –
AN ANALYSIS OF HOW PUBLISHED REPORTS HAVE IMPROVED ITS SIGNIFICANCE

This report is submitted as a partial compliment for the Risk and Control Strategy module of the BBA degree’s 4th Semester

Prepared by THILANKA HEWAGE

Table of Contents

1. Introduction

2. What is Corporate Governance?

3. Corporate Governance Today

4. Reports on Corporate Governance

5. Areas of governance highlighted by Corporate Governance Reports

5.1. Role of the Board of Directors

5.2. Attributes of the Board of Directors

5.3 Composition of the Board of Directors

5.4. Remuneration for the Board of Directors

5.5. Internal Control and Risk management

5.6. Relations with Shareholders and other Stakeholders

5.7. Reporting on Corporate Governance and Disclosures

6. Impact of these reports on the increasing significance of Corporate Governance

1. Introduction

The concept of corporate governance involves the development of clear systems to ensure that all business entities are managed and controlled in a way that ensures the best interests of the shareholders (the owners) are protected.

As a concept, corporate governance came into prominence during the 1970s and ‘80s particularly in the developed world due to the increased level of globalization and internationalisation that led to shareholders and investors demanding for a more transparent and regulated approach to organisational management and the reporting of entity performance. Its significance was also brought to light following the high profile corporate scandals and collapses that plagued the business world, which severely eroded investor confidence in how their companies were being directed by the board and management.

These scandals over the last 25 years highlighted the need for

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