by Adebisi Adeyemi for Bussinessday Online
Corporate Governance probably has a zillion definitions. According to Wikipedia an important theme of corporate governance is the nature and extent of accountability of particular individuals in the organization, and mechanisms that try to reduce or eliminate the principal-agent problem. An interesting definition is one that defines Corporate Governance as “aimed at reducing conflicts of interest, short-sightedness of writing perfect contracts and monitoring controlling interests in the firm, in the absence of which firm value is decreased’ ( Denis & McConnell.
The principles of Corporate Governance by themselves define the responsibilities of individuals who have significant roles within the Corporate Governance framework and the diligent performance of these roles ultimately impact on the entity to which they belong. These principles are Responsibility, Accountability, Transparency, Reputation, Fairness, Independence and integrity. Read more here.