Good Corporate Governance Principles and Its Importance

Good Corporate governance meets the needs of society with the best use of resources.It facilitates economic growth by focusing on value-adding activities and aiding efficient allocation of scarce resources.Investors calculate the rate of return on invested capital and the risk associated with the investment before making any investment, Good corporate governance practices reduce this risk by ensuring fairness, openness, and transparency in its responsibilities to stakeholders.To maintain good governance within organization, a code of governance that consolidates the key governance practices is required.This paper will analyze the code of governance and its importance for the organization.