Challenges and Best Practices in Corporate Governance

Former finance Secretary Jesus Estanislao at once compared good in incarnate validation as keeping ones house in order. Most people want well-run households, one that keeps a lid on expenses art object keeping things neat and clear-cut and takes care of the various needs of family members. In the business setting, a clean house is more attractive to prospective investors. Good corporate governance promotes transparency, accountability and responsibility. Corporate governance is not just about ethical conduct or being transparent and fair to stakeholders, it is alike a means to improve a companys performance, competitiveness and sustainability.In the Philippines, compliance with corporate governance codes is still relatively low. It is probably an offshoot of the way most Asian economies do business, which is more often than not personal and based on connectionswhether by family, affinity or friends. In addition, the word meaning of good corporate governance practices is a fun ction of a firms financial performance. In Singapore for example, a relatively developed economy, a recent report showed a widening gap between companies with difficult and weak corporate governance policies. notwithstanding it is when crisis occurs when the defects in corporate governance are seen. Learning curves for the adoption of scorecards and best practices for corporate governance are a tad high, and maybe difficult for several companies to implement. Dr. Estanislao once said that his advocacy for companies in the Philippines to adopt good corporate governance standards is a slow burn. But someone has to do it, and progress must start as soon as possible so it can also blossom faster.