Objectives and Features of Good Corporate Governance for ACCA P1

Corporate Governance represents the set of policies and procedures that determine how an organisation is directed, administered and controlled. Here are a few bits you might find useful for your ACCA P1 exam.

Objectives of Corporate Governance

  • The codes and regulations provide a mechanism for successful business
  • Corporate Governance codes and regulations help control executive directors of public companies
  • They provide checks and alerts

Features of good Corporate Governance

  • Power and influence – Good corporate governance prevents any single individual from having too much power in an organisation.
  • Encourage investment – It attracts investment by promoting transparency and accountability
  • Management – Good corporate governance ensures a company is managed in the interests of its stakeholders, not just a few top managers
  • Protection – It protects the company through a system of controls