Corporate Governance
by Crash Test Guide.
What is Corporate Governance?
Governing, regulating, controlling mechanisms, this is the way of the world People.
Everything in this world needs these mechanisms to function properly.
Today we have a look at business and how they should operate to function effectively.
Now business are entities. They have no mind or thought processes.
So ,how do they function.
How do businesses employ people, pay salaries, make money, grow in value?
Well, when a business is formed, it has it's functional description in it's Founding statement (cc) or in its name (pty). So this is the businesses function.
Now we come to today's topic.
How does the business function?
There are many aspects here, but for today we will talk about the set up or start up of the business.
Before the business starts, the owners and shareholders will have a sit down and talk.
In this meeting they will make decisions regarding the mechanisms, processes, and relations the business will incorporate into its aims,and objectives.
Here they will create a set of rules, practices, procedures and processes by which the entity will be directed and controlled.
These processes, relations, and mechanisms are referred to as corporate governance.
Just as a government has a prime minister, president, and different ministers for different portfolios, a company/entity is not much different.
Just as a country needs to be governed, so to does a company need to be governed.
This is called cooperate governance.
Good governance is done at a corporate level.
It includes the process by which the company's objectives are laid down añd aimed at with regard to the social, regularity and business environment.
Governance is concerned with the practices and procedures that is needed to make sure that the entity runs smoothly, thereby achieving its aims and objectives.
Good governance creates a foundation with good organisational structure, CEO, executives, managers, supervisors, workers, each with their duties for the entity to function properly.
A proper infrastructure for proper decision making and execution of duties, which will result in company having a sustainable and fruitful future.
This was an introduction into corporate governance, positioned easy enough for the kids to get it. If you like me then you love crash courses. If you unsure about certain topic, research what is out there because you are not alone, I am learning the basics from scratch everyday. Here are some reference links I used to learn some the basics today.
You are never to old to learn basic things, take a crash course everyday because the information age is at our fingertips.... Crash Test Guide.