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Adoption of best practices in the Governance of Corporate has laid-down better foundation for companies by impacting positively on various performance measures. Comment.

Topic:  corporate governance.

7. Adoption of best practices in the Governance of Corporate has laid-down better foundation for companies by impacting positively on various performance measures. Comment. (150 words)

Reference: Ethics by Lexicon publications.

Why the question:

The question is part of the static syllabus of General studies paper – 4.

Key Demand of the question:

To write about the benefits of good corporate governance.

Directive:

Comment– here we have to express our knowledge and understanding of the issue and form an overall opinion thereupon.

Structure of the answer:

Introduction:

Start by defining corporate governance.

Body:

Explain that corporate governance is about enabling organizations to achieve their goals, control risks and assuring compliance. Good corporate governance incorporates a set of rules that define the relationship between stakeholders, management and the board of directors of a company and influence how the company is operating.

Explain in detail the advantages of having high ethical standards of corporate governance. Improved Operational Performances, Competitive Advantages, Improved Profitability, Reduced Corporate Investment Risk and Scams, Amplified Faith among Corporate Investors and Higher Firm Valuation etc.

Conclusion:

Summarize the above benefits and stress on the need of corporates to aim at better standards of corporate governance.