Business Ethics and Corporate Governance, Second Edition

BENEFITS OF GOOD CORPORATE GOVERNANCE TO A CORPORATION

Good corporate governance secures an effective and efficient operation of a company in the interest of all stakeholders. It provides assurance that management is acting in the best interest of the corporation, thereby contributing to business prosperity through openness in disclosures and accountability. While there is only limited evidence to link business success to good corporate governance, good governance enhances the prospect for profitability. The key contributions of good corporate governance to a corporation include:

1. Creation and enhancement of a corporation’s competitive advantage: Competitive advantage grows naturally when a corporation or its services facilitate the creation ...