Relationship between CG, CSR & Financial Health
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A company, although is a legal entity, but it is an artificial person which cannot act on its own. Shareholders elect a group of individuals to act as their representatives, termed as board of directors, who govern the company on their behalf. The governance of a company devolves into a field which is filled with challenges arising primarily on account of separation of ownership and control in companies. It gained momentum in developed countries in the early nineties, and later in the developing economies. The whole gamut of governance of corporate entities by then has been framed as Corporate...
A company, although is a legal entity, but it is an artificial person which cannot act on its own. Shareholders elect a group of individuals to act as their representatives, termed as board of directors, who govern the company on their behalf. The governance of a company devolves into a field which is filled with challenges arising primarily on account of separation of ownership and control in companies. It gained momentum in developed countries in the early nineties, and later in the developing economies. The whole gamut of governance of corporate entities by then has been framed as Corporate Governance which encompasses not just the board but other mechanisms like external markets to monitor poor performing managers, regulatory agencies, institutional investors, block holders of shares and the framework under which power is exercised over corporate entities.
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