CG

Assalammualaikum wbt & Salam Sejahtera,

CG or Corporate Governance. Does anyone know how important it is? I know some of my readers is a business owner to various type of business. I'm quite sure you must familiar with this term or "pernah dgrlah, tapi kat mana ek" sengihnampakgigi

Does CG relate to our life? For me YES! Why let me define it first, so then you can get some clear view of what I am talking about. CG is a set of relationship between an entity's director, shareholders and other stakeholders. It provides the structure through which the objectives of the entity are set and determine the means of achieving those objective and monitoring performance. In simple words, it is a system created to an organisation to be directed and controlled to serve the goal to it shareholder and other stakeholders.

So does its appear it is related to our life? We also have set some objective in our life right? You have dream? So in order to make your dream or objective come true, then you must has set some procedures or in simple word strategies to make it real.

But in the business there are concept to applied in order to make your CG success. What is the concepts?

1-Honesty/probity - not simply telling the truth but also being guilty of issuing misleading statement, how it relate to our life? Should we being honest?

2- Accountability - the emphasis of the directors' accountability to shareholders. Our life? Who is director? We serve who?

3- Independence - strong emphasis on the appointment of independent non-executive director who are free of conflict of interest and are thus able to monit0r effectively the entity's and executive director's activities. Who review us? Does anyone can tell u the truth about you? If someone close to you, their might tend to not disclose some of your bad habit or etc

4- Responsibility - Entity director acknowledge their responsibilities to the stakeholders and will take whatever correction action is necessary in order to keep the entity focussed. Did you being resposnsible to yourself? Family? Friends? Community? World as whole? If not, did you make any effort to make sure it won't be happen in future?

5- Judgement - the skill with which management make decisions which will improve the wealth or prosperity of the organisation. We did decision in our life right? We had given a choice either to say YES or NO. So we did some judgmental argument before any decision we made.

6- Reputation - built by director, often as a result of their ability to comply with other CG concepts. What you understand by reputation? Should we had a good and maintain our reputation especially among our family members, friends, colleagues, community and in the nation or world as whole? Ok, at least among people around you. You should have a good reputation.

7- Integrity - straightforward dealing, honesty, and balance. We should have cross, check and balance in our live. In work for an example, when you boss is not there will you do your work? Or looking at the clock and going back early or chit chatting and playing game? Is this wrong?

8- Fairness - taking into account the interest, right and view of everyone who has a legitimate interest in the entity. We should be fair to other people, eg you as employee. Has 2 bosses which one is handsome and the other one just nice, when both of them give you task. Which one would you do 1st? Say, you have intention to the handsome guy.fikir

9- Transparency / openness - involves full disclosure of material matters which could influence the decision of stakeholders. Are you transparent? Say to your mom/dad or your husband/wife? Did you tell the truth?

D_Y_H
What cross you mind now? to have good CG?

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