Accounting is the language of the business and corporate governance has become a

Question

Accounting is the language of the business and corporate governance has become a topic in the media due to the accounting scandals over the past years. Developing a strong internal control system starts with corporate governance. There are several critical elements to corporate governance. Based on your research, what are some of the necessary elements and what element is the most important? Support your answer with credible sources. Cite your sources using proper APA format (both in-text and reference entries).

Explanation / Answer

1. Effectiveness and Efficiency

Good goverence should be effective and should fulfill the requirement of stakeholders. The same should be followed

2. Accountability
Accountability is a key tenet of good governance. Who is accountable for what should be documented in policy statements. In general, an organization is accountable to those who will be affected by its decisions or actions as well as the applicable rules of law.

3. Participation
Participation by both men and women, either directly or through legitimate representatives, is a key cornerstone of good governance. Participation needs to be informed and organized, including freedom of expression and assiduous concern for the best interests of the organization and society in general.

4. Transparency
Transparency means that information should be provided in easily understandable forms and media; that it should be freely available and directly accessible to those who will be affected by governance policies and practices, as well as the outcomes resulting therefrom; and that any decisions taken and their enforcement are in compliance with established rules and regulations.

5. Responsiveness
Good governance requires that organizations and their processes are designed to serve the best interests of stakeholders within a reasonable timeframe.

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