Constructive Bearing of Corporate Governance Mechanisms on Organizations: A Review of Corporate Governance Manual in Ghana

Patrick Obeng Danso, Yusheng Kong, Michael Nana Owusu-Akomeah, Stephen Owusu Afriyie

Abstract


The international standard on social responsibility, ISO 26000, describes organizational governance as a system by which an organization makes and implements business decisions in quest of its objectives. The corporate governance systems encompass management procedures that are geared towards delivering objective-based organizational performance, while considering the interests of stakeholders. The systems seek to ensure compliance of standards, regulations, and business rules to which organizations must observe and adhere to achieve the goal of the institution. In view of this, corporate governance manual provides a framework for directors, executives, and shareholders of organizations for protection and accomplishment. When the structures, practices, guidelines, regulations are strong, or stuck to, good governance would be upheld. In essence, the manual allows organizations to follow procedures that serve the needs of shareholders, management team, customers and other stakeholders responsibly and effectively, while meeting the organization’s short and long-term goals. It is generally associated with overarching principles such as fairness, independence, transparency, accountability, honesty and social responsibility. Corporate governance propels these principles into practice by making enhancements to internal controls and operational procedures to achieve organizational objectives.


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