Accountability Is An Essential Ingredient Of Corporate...

Abstract Accountability is an essential ingredient of corporate governance, and indeed is the reason for any corporate governance set up. This paper discusses the ways in which accountability contributes to corporate governance and vice versa, and the mechanisms by which organizations may become more accountable and transparent. Corporate governance and accountability are often interrelated in organizations and provides a focus for business practices that promote fairness, ethical behavior, and transparency. The framework often provides information for how a company interacts with other businesses via contractual agreements, procedures for reconcile conflicts or disagreements among stakeholders, and the development of a†¦show more content†¦Ã¢â‚¬ ¢ The governance role is not concerned with the running of the business of the company per se, but with giving overall direction to the enterprise, with overseeing and controlling the executive actions of management and with satisfying legitimate expectations of accountability and regulation by interests beyond the corporate boundaries (Tricker, 1984). †¢ The governance of an enterprise is the sum of those activities that make up the internal regulation of the business in compliance with the obligations placed on the firm by legislation, ownership and control. It incorporates the trusteeship of assets, their management and their deployment (Cannon, 1994). The basic principles of effective corporate governance are threefold; these are transparency, accountability and internal control: The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company objectives are set, and the means of attaining those objectives and monitoring performance. Therefore, the overall purpose of good governance: to assist organisations to achieve their strategic objectives. Good corporate governance helps