Business Ethics and Corporate Governance, Second Edition

GOVERNANCE IS MORE THAN JUST BOARD PROCESSES AND PROCEDURES

To most of us, corporate governance is just a set of codes and guidelines to be practised diligently by companies. We have the Cadbury Code and the CII Code of Desirable Corporate Governance. These codes generally enjoin corporations to ensure changes in their Board structures and procedures with a view to making the company more accountable to shareholders. To achieve such an objective, they would recommend increasing the number of independent directors on boards and not to have one person acting both as the chairman and CEO, and to introduce committees for specific purposes such as the audit committee and remuneration committee.

However, ‘governance is more than just Board processes ...