Corporate Governance As A Strategic Tool In Poverty Reduction
Corporate Governance is an area that has been growing
steadily in importance in the last decade. The Cadbury
Report of 1992 on the Financial Aspects of Corporate
Governance in the UK laid the foundations of corporate
governance not just in the UK, but also in countries all
over the world, most of who have incorporated its main
principles into their own corporate governance codes.
The report defines Corporate Governance as the system
by which companies are directed and controlled. Boards
of Directors are responsible for the governance of their
companies. The shareholders’ role in governance is to
appoint the directors and the auditors and to satisfy
themselves that an appropriate governance structure is in
place.The Cadbury Report 1992.
On the Financial aspects of Corporate Governance
Corporate governance involves a set of relationships
between a company’s management, its board, its
shareholders and other stakeholders. Corporate
governance also provides the structure through which the
objectives of the company are set, and the means of
attaining those objectives and monitoring performance are
determined.Organisation for Economic Co-operation and
Development OECD Principles of Corporate Governance
The aim of corporate governance is to ensure that the
boards of directors do their jobs properly.
A guideline, which directs the boards and managements
through the best way of utilising the assets of their
companies in increasing returns on shareholders’ wealth.
Objectives are to help Directors and
• To take a more strategic view of Corporate
governance and project management.
• To explore how effective corporate governance and
project management are deployed to reduce poverty
in developing countries.
• To create a better understanding of the Corporate
governance regulation, and its impact on the
organisation decision-making process.
• To understand the different Corporate governance
systems around the world with particular reference to
• To understand the key features of business ethics and
how it impacts on decision making on corporate
• Understanding of who are the Stakeholder groups of
the organisation, and what are their interests.
• Understanding of the shareholder theory, which is
concerned with the maximization of shareholders’
wealth over the long-term.