Some of the fundamental principle of corporate governance is to ensure that there is a sustainable long term vision for the company. The “tone” of the management sets the ethical code of conduct for the company. The management is responsible for the development and implementation of the corporate strategy. The management needs to have the oversight and audit commit to produce the financial statements (Lynch, 2006). They need to make timely disclosure to the investors and address their financial and business soundness of the company. The audit commit is a part of the board that is used to oversee the financial statement audit and the internal control over reporting.
The nomination of the corporate governance board plays an important role in the shaping of the corporate governance policy of the company. The compensation and reward must fit into the general mandate. The packages and compensation of the CEO must ensure that the value and assets of the company are protected. The board and the management play an important role in the engagement with the stakeholders and the share-holders on issues that are of widespread interest. The decision-making process of the company must benefit the short-term and long-term values of the company. All the parties’ interest must be considered in this process. These include employees, customers, suppliers and related members of the community. They need to ensure that there is a direct and meaningful method ensuring value for the long-term.