Corporate governance
Introduction
The concept of corporate governance refers to the set of principles and rules that regulate the design, integration and operation of the company's governing bodies, such as the three powers within a company: Shareholders, Board of Directors and Senior Management. In Spanish, corporate governance, corporate governance and corporate governance are also used. (Salvochea, Ramiro. Markets and Governance. The revolution of "Corporate Governance", 2012).
Good Corporate Governance provides incentives to protect the interests of the company and shareholders, monitor the creation of value and efficient use of resources, providing transparency of information.
"The important thing is to emphasize that corporate governance is not an individual instrument but rather a concept that includes the debate on the appropriate management and control structures of companies. It also includes the rules that regulate power relations between owners, the board of directors, management and, last but not least, interested parties such as employees, suppliers, customers and the general public." (N.R. Narayana Murthy, Chairman, Committee on
Corporate Governance, Securities and Exchange Board of India, 2003).
The concept appeared a few decades ago in the most developed countries of Western Europe, in Canada, the United States and Australia, as a consequence of the need that minority shareholders of a company had to know the status of their investment; That is, they wanted to know what was being done with their money and what future expectations were. This made the majority shareholders of a business and its administrators begin a process of opening up information, at the same time of professionalization and transparency in its management.
In the world, pension funds, mutual societies, insurance companies, venture capital companies, etc., are an important part of the financial system and the information needs on their investment have been definitive in the incorporation of so-called best corporate practices into companies.
The Organization for Economic Cooperation and Development (OECD) issued in May 1999 and revised in 2004 its “Principles of Corporate Governance” which contain the basic ideas that shape the concept that is used by member countries and some others in the process of becoming so. In 2011, Aguilera and Jackson published a comparative study of the principles and practices of corporate governance prevalent in different countries.[1].