Importance of Corporate Governance|Developments in Corporate|Professional Ethics|DAT

The importance of corporate governance
1. Widespread of shareholders: Shareholders are widespread throughout the nation or even outside the nation. A strong corporate governance is important in that case and as a result provide satisfaction.
2. Corporate scams:- Many corporate scams like Harshad Mehta, Hasan All, satyam scam etc have shaken the confidence of public. Thus, it is required to have strong corporate governance to create satisfaction among stakeholders.
3. Globalization:- For the purpose of Globalization, strong corporate governance is required so that all indian companies can easy get their shares listed in International stock exchange.
(4) Customer & Shareholder satisfaction:- Corporate governance also Important in case of customer and shareholder satisfaction. As CG create a ethical environment in organization.


The importance of social responsibility in organization
1. Improved public image. This is crucial, as consumers assess your public image when deciding whether to buy from you. Something simple, like staff members volunteering an hour a week at a charity, shows that you’re a brand committed to helping others. As a result, you’ll appear much more favourable to consumers.
2. Increased brand awareness and recognition. If you’re committed to ethical practices, this news will spread. More people will therefore hear about your brand, which creates an increased brand awareness.
3. Cost savings. Many simple changes in favour of sustainability, such as using less packaging, will help to decrease your production costs.


Developments in corporate.
1. Ensure a Suitable Board.
The Board should be balanced, competent, and diverse if you are hoping to achieve success through corporate governance. Aim to have directors who are qualified, and who understand the business thoroughly but can also offer a fresh perspective.   
2. Review the Board Regularly
The composition of the Board of Directors is critical and can make or break the success of your organization’s corporate governance. Regularly reviewing your Board can help to identify any possible shortcomings quickly, which then allows you to make timely improvements and keep things on track.  
3. Build Solid Foundations for Oversight
Overseeing the work of both the Board and management is critical. Develop a systematic foundation you can use to establish, monitor, and regularly evaluate their roles and responsibilities. The Board needs to have visibility of management actions and be available during all key decision making. 
4. Aim for Long Term Value Creation
Gearing key performance indicators towards long-term value production, as opposed to short-term, will ensure sustainable success for your company.