CORPORATE GOVERNANCE CASE 2

Group 3

Corporate Governance

Corporate Management

Wider Perspective

Narrow Perspective

Strategy Oriented

Goal Oriented

Focused towards formation of

Focused towards

strategies and planning

implementation of those
strategies and plans

External Focus

Role Conflict

Internal Focus

 Pros

Better reporting of affairs

Transparency between management and board
Better implementation

Conflict in Dual Role

 Cons

Manipulation of information
Focus on personal profit
Non-alignment with the companys goals

Conflict in Dual Role

 Responsible
Better

for financial transparency

explanation of the companys financials to the

board
Effective

and efficient monitoring of strategies and

policies formulated by the board

Role of Audit Committee

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