Answer to Question #79479 in Finance for Hugh Heron

Question #79479
what are the crucial components of corporate governance principles?
1
Expert's answer
2018-08-09T01:18:09-0400
The most important components of corporate governance principles:
1) Consistency and harmony of interaction between corporate ("medium") and macrolevel management of the economy, reasonable "inscription" of the activities of large corporations in the system of basic macroeconomic strategies and regulators:
- the principle of methodological and information interaction of leading national corporations and authorities in the process of developing regional, sectoral and national socio-economic forecast and program documents;
- the principle of certainty, regulation and stability of the composition of functions and methods of state regulation of large business;
- the principle of reasonable openness of large business to the authorities and society, objectivity and completeness of informing the general public about the main results, priorities and values of leading corporate associations.
2) Responsibility and competence of actions of corporate managers (executive bodies of corporations) in relation to the implementation of the goals, interests and strategies of corporate owners (shareholders):
- the principle of recognizing the existence of zones of "mutual non-interference" of large business in matters relating to the direct prerogative of power and vice versa;
- the principle of the responsibility of the heads of large businesses to society and the state for the state of controlled spheres of the economy,
3) Achieving synergy of integration interaction of individual legal entities within the framework of economic activities of a corporate association as a whole:
- the principle of identifying, analyzing and systematically updating the synergies (indicators) of synergies;
- The principle of accounting for synergies at all stages of the formation (design), restructuring, reorganization of the corporation;
- the principle of planning indicators of synergy, setting appropriate targets, organizing and monitoring their implementation in the management system;
- the principle of building the capacity of manageability of the corporate system.

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