FINS3626 Lecture Notes - Lecture 1: Good Governance, Whistleblower, Creative Accounting
Document Summary
Regarding business/management, it is about what board do, how they are composed and their effectiveness in achieving company goals. It is a system of policies, processes and rules that direct and control a business"s behaviour. It is the framework that defines the relationship between shareholders, management, the board of directors and other key stakeholders. Deals with board of directors, different from just management. Bad corporate governance: hugely inflated share price and it seemed like the safest investment options in the us they couldn"t pay off their debt and went bankrupt. Royal banking commission selling financial products to customers who don"t actually require them (i. e. customers misled) A good governance is how you manage the company well in terms of compliance, hr, operation, society, stakeholders and environmental friendly. A bad governance is the opposite of the good governance. For example, doing business without ethics, discharge responsible from stakeholder and shareholders and creating harmful waste and hurt the society.
