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FAQs on Mind Map: Corporate Governance - Indian Polity for UPSC CSE
| 1. What is the importance of corporate governance in modern businesses? |  |
Ans. Corporate governance is essential for ensuring accountability, fairness, and transparency in a company's relationship with its stakeholders. It helps to build trust with investors, maintain a positive reputation, and minimize risks related to mismanagement or fraud.
| 2. What are the key principles of corporate governance? | |
Ans. The key principles of corporate governance include accountability, transparency, fairness, and responsibility. These principles guide companies in establishing policies and practices that promote ethical decision-making and stakeholder engagement.
| 3. How does corporate governance impact investor confidence? | |
Ans. Strong corporate governance practices enhance investor confidence by demonstrating that a company is well-managed and committed to ethical behavior. This can lead to increased investment, better stock performance, and lower costs of capital for the company.
| 4. What role do regulatory bodies play in corporate governance? | |
Ans. Regulatory bodies establish frameworks and guidelines that companies must follow to ensure compliance with legal and ethical standards. They monitor corporate behavior, enforce regulations, and promote best practices in governance to protect the interests of shareholders and the public.
| 5. How can companies improve their corporate governance practices? | |
Ans. Companies can improve their corporate governance by implementing strong internal controls, fostering a culture of transparency, providing regular training for board members and employees, and engaging with stakeholders to understand their concerns and expectations.
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