Internal and External Corporate Governance

Corporate Governance > Best Practices > Internal and External Corporate Governance

Internal and External Corporate Governance
Jaap de Jonge, Editor, Netherlands
Corporate Governance (CG) can be viewed as the system by which companies are directed and controlled. Also companies can be held accountable by CG, limiting managerial discretion in order to protect the interests of outsiders in the corporation.
These 'outsiders' can be shareholders, stakeholders, other interested parties or even society as a whole.
Any CG 'system' consist of a large number of mechanisms. We can broadly categorize CG mechanisms into two groups:

1. Internal Corporate Governance
Internal corporate governance encompasses the controlling mechanisms between various actors inside the firm: the company’s management, its board and the shareholders.
In this form, the shareholders and other constituents 'delegate' the controlling function to internal entities or mechanisms, such as the Supervisory Board (in case of two-tier board) or the Board of Directors (one-tier) and/or special...Sign up

Corporate Governance - The Role of the Customer
Ashok Asthana, Consultant, India, Member
I feel customers play a very important role in influencing internal governance, since a company, without a customer is nothing. As per the old ...Sign up

Keep Corporate Governance as Simple as Possible
Hazem Yassin, Manager, Saudi Arabia, Member
Dear Jaap your article was very good, concentrated and short with clear idea. In our company we already have a CG manual in place, but unfortuntily we...Sign up

Internal and External Corporate Governance
D P BABU, Strategy Consultant, India, Member
The effectiveness in counterbalancing internal and external corporate governance mainly rests with the disclosure philosophy of the company (Sign up

Corporate Governance Mechanisms (Intern and Extern)
alim sale, Strategy Consultant, Kenya, Member
Thanks for the interesting analysis of all elements that influence good corporate practices.
Good CG practices within our organisations are cruci...Sign up

Are Sub-consulting Firms part of Internal Governance?
Greenhow, Consultant, Sweden, Member
Your examples of external governance mechanisms seem to be external actors who influence the behaviour of the firm. Am not sure where to put sub-contr...Sign up

Corporate Governance and Local Government Service
Adam Mohammed Baba, Director, Ghana, Member
As an employee of local government (LG) service, your article has made me see what I will call internal and external CG in the Ghana LGs.
- Some...Sign up

Corporate Governance
Madan Gopal Agarwal, Business Consultant, India, Member
Excellent articulation and perspective, Jaap. The key is self-realisation and willingness of the board/company/owners etc. that they are accountable t...Sign up

Corporate Governance and Joint Ventures
Douglas Ferguson, Consultant, Member
How might this structure be applied in joint ventures where there is a 50-50 ownership stake between the partners? In addition, the jv is designed to ...Sign up

Corporate Governance and Local Government Service
Adam Mohammed Baba, Director, Ghana, Member
@Adam Mohammed Baba : Thank you Jaap for the excellent comment on my submission. You have added more insight into my...Sign up

External Influences and CG Mechanisms
Greenhow, Consultant, Sweden, Member
I'd appreciate clarification of some of the external "mechanisms". Are you using mechanism as synonymous with influence? I can see how legislation wit...Sign up

Transparency in Internal and External CG
AIDA ACUBA, Professor, Philippines, Member
@D P Babu: I agree with your opinion... I believe there must be transparency in good corporate government. With that...Sign up

Corporate Governance is More of Internal Value Than for External Control
Suleiman C. Muttani, Consultant, Tanzania, Member
I would thank the Mr de Jonge for this interesting topic. I simply define governance as a striking balance between internal performance and externa...Sign up

Good Ethics in Internal and External Corporate Governance
Kumsha, Student (MBA), Sao Tome and Principe, Member
@Madan Gopal Agarwal: I agree with you Madan, I also believe that ethics and ethical leadership play a central role ...Sign up

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