How Is Corporate Governance Born Part One
In today's world we live in, the instinct of competition is a fundamental issue for success. Unfortunately, only those who can adapt and make a difference can achieve success.
In the corporate world, one of the winning cards is the implementation of corporate governance with the leadership of a figure such as a company secretary.
It is of great importance that companies learn to make changes in the definition of objectives, strategies, and controls to encourage internal and external competition, and at the same time gain the confidence of consumers and achieve success.
However, at present, this is difficult to achieve without the birth of corporate governance and the implementation of a position such as a company secretary.
How Does Corporate Birth Come About?
Although the corporate governance system is becoming a trend in the modern era, the reality is that its concept has existed for more than 70 years. The first signs of the emergence of a corporate structure within companies originated in the 1930s.
After the Wall Street financial crisis of 1929, the need to develop transparency in companies, and to implement guidelines where managers are accountable for their business practices became apparent.
In the 1930s, the first guidelines were developed on the roles and responsibilities to be assumed by executives and management groups within a company. And the first bases would be formed that would serve as a precedent to create the first corporate governments of the last 20 years.
Good Corporate Governance
The term corporate governance or "good corporate governance" was first used by Richard Eells to refer to the corporate structures that were being developed and implemented in companies.
Over the years, the definition of corporate governance has been evolving, but in general terms, it can be defined as a set of measures that are developed to remedy and prevent all problems related to the company and that emerged through the relationship between the board of directors and the group of shareholders, to achieve an efficient management system.
