Internal stakeholders are the board of directorsexecutivesand other employees.
They have to guarantee that whatever is taken, is given back, in its form or another, and o ensure that at the end of the day, everyone is happy and fulfilled. Having forenamed all of these, external institutions are given the power and much greater responsibility to check and account if the corporate governance of an entity is fulfilling its responsibilities.
Top of the list are the regulators.
Specifically, government agencies regulate corporate governance through formulation and implementation of rules and regulations on the operations of corporate institutions within of course its jurisdiction. In instance, the Corporation Code of the Philippines or the Batas Pambansa Bilang 68 is where all other laws and interpretations are derived concerning a corporation and corporate governance.
It is, in my opinion, the mother of all corporation laws, bylaws, rules and regulations and policies. Discussing it immensely will require tedious hours to complete. Aside from this constitutional law, the government also provided specific special laws; most of them enable the government to create agencies, commissions, and overseeing committees to help them ensuring that all laws are practiced, are incorporated to its activities, and that the interest of the people by saying people it is because our government is by the people, of the people and for the people are taken into account.
In having this long list of government-regulating agencies, the good, and the The external institutions of corporate governance happen.
On the general concept of law, everyone is given fair and equal treatment; may you be a small-medium enterprise or a multinational corporation.
But as I said, concept. The government attitude on flip-flopping mining policies that is, politicizing has given mining companies to have a second thought of investing in the country and several of them are backing off to some of its projects that would create the much needed jobs in the country and contribute to our economic wealth and progress.
Some politically affiliated groups would argue environmental issues; well the answer still lies on the government. We have government agencies such as as the DENR to overlook and ensure environmental laws and policies are followed by these companies.
Again, it is concept versus action. Yes, the burden lies on the government, because it is for the fact that they will be heavily benefited from these activities, from their share on mine extraction down to taxes.
They just have to make sure that all laws and policies are sound and effective. On this point, I recommend that aside from corporations, the government should also take responsibilities of its actions towards the betterment of life of all.
The market has one of the most vital positions on the list of external institutions of corporate governance. It is where the core business process is centered. In a manufacturing or service companies, market serves as the meeting place where product and services are sold, consumed and rendered.
In capital markets, it is the location where demanders and makers of fund met for capital transactions where firms can generate additional funding requirements for investments, expansion and for other reasons where the company sees fit to acquire further capitalization. Take a look of what the conglomerate Ayala Corporation owned telecommunication giant Globe Telecom did to satisfy market demands.
Globe has seen the growing needs of their market-based customer services like post-paid plans for mobile users for personal and fully customizable mobile data plans.
By introducing this innovative platform to their market, Globe has ensured their leadership in telecommunication services and sustainability of their profits while satisfying what the market has demanded. The external auditors are professionals or an audit-service provider company who performs an audit in accordance with specific laws or rules on the financial statements of a company, government entity, other legal organization, and who is independent of the entity being audited.
They are the silent reminders to any company that there are eyes looking on them to ensure that interest of others are protected and enables the company to act consciously, with proper diligence and conscientious.
In effect, this feeling of being watched can lead the company to formulate strategies, policies and corporate governance practice in ensuring transparency and reliability is observed at all times.
One of the most prominent other external institutions is the media. The media can turn both ways the fate of the corporation, the good, and the bad.
The media can sensationalize, and will sensationalize everything, from simple employer-employee relation, waste management issues, down to malicious conclusion on corporate policies, leaders and their personal ventures, all in the name of public information and lurid news report.
Several corporations throughout history failed not because of inability to operate profitably, but by being put into limelight by the media, who throws issues backed-up not by hard facts but by malicious intent to get a scoop to feed the public.
Television giant ABS CBN, owned by Lopez Group of Companies, have reported and allotted a series of prime time news report concerning waste disposal of Philex Mining Corporation and the adverse effects it has on people and environment.Another often overlooked issue related to the importance of banks’ Corporate Governance regimes is the effect of the banking sector on other parts of the economy.
Government regulations are the most effective external controls on the governance of a company. Companies are required to comply with these or face penalties for violations.
Our approach to Corporate Governance is built upon a set of strong principles and values set by the Board of Directors for our management and employees.
Corporate governance is the mechanisms, processes and relations by which corporations are controlled and directed.
Governance structures and principles identify the distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, creditors, auditors, regulators, and other . Having forenamed all of these, external institutions are given the power and much greater responsibility to check and account if the corporate governance of .
Governance in higher education is the means by which institutions for higher education (tertiary or post-secondary education) are formally organized and managed (though often there is a distinction between definitions of management and governance).