Importance of Corporate Governance
People or entities who have a financial interest in a business and can be affected by it?
Stakeholders
The business treats all shareholders equitably is called
When coworkers can rely on each other and not have to depend on managers or supervisors this is called:
Team unity
When a company wants to convey what is acceptable and unacceptable regarding the quality of its product, it will develop:
Standards
Conception of right and wrong behavior
Ethics
The way key stakeholders interact to make decisions
Corporate Governance
A responsibility of the board of directors involves planning expenses vs. revenue and creating a projected financial blueprint
Budgeting
When employees are given independence and expected to be more self-sufficient, they become more efficient over time this should lead to:
Increased productivity
Procedures
Maintaining open and honest communications
transparency
the process of reducing the likelihood of a risk event occurring and minimizing its impact if it does
Risk Mitigation
Board members putting the interest of the organization before their personal and professional interests is called
Loyalty
When employees are treated as an asset and their input is valued, confidence increases among every team member, which greatly improves:
employee morale
When deciding whether to issue a policy or guideline, a business should consider the:
Level of risk
A group of individuals elected to represent shareholders and oversee the management of a corporation
Board of Directors
Forcing someone to do something against their personal beliefts
Coercion
the department located within a business that monitors the efficacy of its processes and controls
Internal Audit
Described as workers' direct contribution to an organization in achieving and fulfilling its task and attaining its purposes by applying their thoughts, skills, and efforts toward problem-solving and decision-making.
Employee Involvement
What establishes and protects the rights and specifies the duties and responsibilities or an organization's members, board of directors and executives?
Bylaws
An individual or entity that owns shares in a corporation.
Shareholder
a way to ensure that no one person or group has too much power in a company.
Check and Balances
What are the four principles of corporate governance
Accountability, fairness, transparency and independence.
A process of employee involvement in company decision-making through a small group.
Representative participation
To operate effectively, small to medium-sized businesses may only need:
Guidelines
The minimum number of members required to be present at a meeting to make the proceedings valid
Quorum