Corporate governance Essay Example | Topics and Well Written Essays - 500 words

Corporate governance - Essay Example bility and performance of the product and services are sustained and improved so that firms are not only able to retain existing customers but also attract new consumers. Thus risk management through effective governance, innovation, knowledge management and value addition become critical elements for protecting and sustaining the value of the products for consumers. All people directly or indirectly associated with the company are called stakeholders. Thus, customers, employees, shareholders, creditors, debtors, suppliers, regulators action groups etc. all become stakeholders in the company as they are, one way or another, affected by the business’ activities (Solomon, 2007. The identification of various stakeholders is important they are linkages that significantly impact the performance of the firm and promote development of society in general. In the contemporary environment of competitive business, the firms are not only motivated by financial benefits but play wider roles in the development of the society as a whole. Various stakeholders ensure that the business is having positive impact on the wider imperatives of social causes like environment, better HR practices, effective CSR practices etc. The analysis of stakeholders also helps the firm to proactively support the community welfare and at the same time, meet the changing preferences of the customers, thereby significantly impacting it productive outcome and improving its image and credibility amongst the stakeholders. The corporate governance gatekeepers are people who are in position to influence the decisions and activities of the management for improved and ethically delivered objectives and goals of the company. The main gatekeepers of the firm are: independent and competent board; independent and competent auditors; objective and competent legal council; and competent financial advisors. The responsibilities of different gatekeepers is to ensure that board is given the right advice regarding