Challenges and Best Practices in Corporate Governance

Former Finance Secretary messiah Estanislao once compargond redeeming(prenominal) corporate regime as keeping mavins house in order. Most people want well-run households, unitary that keeps a lid on expenses while keeping things neat and cull and takes care of the various needs of family members. In the business setting, a light-headed house is more attractive to prospective investors. Good corporate organization promotes transparency, accountability and responsibility. Corporate governance is not just about honourable conduct or being transparent and fair to stakeholders, it is besides 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 get-go of the way most Asian economies do business, which is largely personal and found on connectionswhether by family, affinity or friends. In addition, the adoption of good corporate governance practices i s a function of a firms financial performance. In Singapore for example, a relatively developed economy, a recent report showed a widening gap between companies with voiceless and weak corporate governance policies.But 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 state 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 take as soon as possible so it can also blossom faster.