2.1.2 Accountability

Accountability

Accountability in corporate governance means that individuals and entities within the company are held responsible for their actions and decisions. It ensures that the company's management and board of directors are answerable to the shareholders and other stakeholders. Accountability is crucial for maintaining trust and confidence in the company's leadership.

One way accountability is enforced is through the establishment of a board of directors that oversees the company's management. The board is responsible for setting the company's strategic direction, monitoring its performance, and ensuring that management acts in the best interests of the shareholders. In cases where management fails to meet its obligations, the board has the authority to take corrective actions, such as replacing key executives.

Additionally, accountability extends to the company's adherence to legal and regulatory requirements. Companies must comply with applicable laws and regulations, and any deviations or misconduct must be addressed promptly. This principle also includes the company's commitment to ethical conduct and corporate social responsibility (CSR).


Last modified: Sunday, 20 October 2024, 8:51 AM