Corporate Governance

These interview questions in Corporate Governance will help you to prepare for your next job interview.

Q.1 According to you what are the most critical ethical issues in business today?
The leaders and institutions need to re-conceive of how they build for growth. This requires abandoning the kind of short-term thinking and short-sighted decision making that got into our current economic troubles and instead focus on building a sustainable enterprises. Therefore sustainability is a long-term, integrated platform for innovation, growth and significance that requires a long-term commitment to how a company relates to people, to its communities and to the larger societies that give it permission to operate, and to the environments in which it conducts business.
Q.2 What do you understand by Corporate Governance?
Corporate governance refers to the structures and processes for the direction and control of companies and concerns the relationships among the management, Board of Directors or Supervisory Board, controlling shareholders, minority shareholders and other stakeholders. Effective corporate governance majorly contributes to sustainable economic development by enhancing the performance of companies and increasing their access to outside capital
Q.3 Corporate Governance mean the same tithing to everyone, everywhere?
Definitely not , There are mainly two fundamental approaches to governance. 1. The stakeholder model - In this model it assigns rights and responsibilities to a broad group of constituencies, “stakeholders,” including: banks, bondholders, employees, the government and local communities or society at large. 2. The shareholder model - It maintains that ownership is key and therefore the shareholder is the primary focus of governance.
Q.4 What is the primary objective of Corporate Governance?
Effective corporate governance, helps the corporation function more effectively over the long term, to the benefit of all stakeholders – This is done by identifying, analysing and managing risks; pursuing opportunities; mitigating negative impacts; and therefore by improving triple bottom line performance (planet, people and profit).
Q.5 Which rewards does good Corporate Governance reap?
Clearly, good corporate governance requires policies, practices, procedures and systems that helps to strengthen the corporation, thereby reaping internal benefits such as clear governance policies, practices and procedures, improved oversight and supervision; sound organizational management; heightened risk awareness; management and mitigation; compliance with regulatory and self-regulatory requirements; appreciation and recognition of corporate citizenship; strong corporate reputation; and good triple-bottom line performance. Such that these internal benefits in turn create and reap external benefits, like better marketing of the corporation’s products and services; liquidity of the corporation’s bonds and shares; maintenance of corporate reputation; and improved access to capital.
Q.6 What is the main purpose of corporate governance?
To separate ownership and management control of organisations and the requirement for increased accountability to stakeholder groups.
Q.7 Which corporate governance model emphasize the interests of shareholders?
The Anglo-American model
Q.8 Which country passed FCPA?
United States, the law passed in 1977 that prohibits U.S. firms and individuals from paying bribes to foreign officials in furtherance of a business deal.
Q.9 What is keiretsu?
A Corporate group composed of manufacturers, supply chain partners, distributors and financiers who remain financially independent. They work closely together to ensure each other's success.
Q.10 What is the typical duties of boards of directors?
Here are some duties performed by board of directors.
1. Governing the organization by establishing broad policies and objectives
2. Selecting, appointing, supporting and reviewing the performance of the chief executive
3. Ensuring the availability of adequate financial resources
Q.11 What does the ISO 14000 standard focus on?
It focusses on environmental management, ISO 14000 is a series of environmental management standards developed and published by the International Organization for Standardization (ISO) for organizations.
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