Question

Explain the significance of Corporate Governance from the point of Stakeholders.

Answer 1

Balanced economic development is made possible through transparent management under corporate governance. All stakeholders' interests are protected and promoted through corporate governance. Some of the benefits of corporate governance are as follows.

1. Good corporate governance enables corporate success and economic development.
2. Ensures stable growth of organizations.
3. Aligns the interests of various stakeholders.
4. Improves investors’ confidence and enables the raising of capital.
5. Reduces the cost of capital for companies.
6. Has a positive impact on the share price
7. Provides incentive to managers to achieve organizational objectives.
8. Eliminates wastages, corruption, risks, and mismanagement.
9. Improves the image of the company.
10. The organization is managed to benefit the stakeholders.
11. Ensures efficient allocation of resources
12. Creates a strong brand as an ethical business.