Mubarak Habib Said Al Hadi
Importance of Corporate Governance
What is Corporate Governance?
Corporate governance funds the comments that are made in which the company’s control and way will contain devices for flexible the several relationships among the Board of Managers Executives, stakeholders and owners Interests, by creating special procedures to facilitate decision-making method and transparency and reliability to defend owner rights Stakeholders, justice and competitiveness transparency in the market and business environment.
Why Corporate Governance?
Companies that device the values of governance enhance the confidence and self-assurance of their owners in their savings. This is a suggestion of the Board of Leaders’ information and organization of the dangers close the company and its capability to achieve and decrease these risks. This supports the saver to make his deal decision, attractive into account the other elementary asset criteria. Corporate governance is an active practice that leads to fascinating investors and gaining their trust in the company’s advantages, with the provision of justice and transparency to all investors. Stockholders frequently use knowledgeable people to manage the businesses they invest in because they absence the time and experience to manage
The importance and benefits of corporate governance:
The importance of corporate governance lies in many aspects one of the significant:
Economy Corporate governance pays to rising the efficacy of the economy since it is important in serving to calm the financial markets and increase the equal of transparency and attract deal from both outside and inside, in addition to reducing the size of the dangers facing the economic system.companies implementing the values of corporate governance services companies create a sound employed environment that allows the company to do better with good governance. trust with stakeholders. Investors and shareholders Corporate governance goals to protect funds from contact to loss due to waste of power in the interest of investors and to maximize investment earnings, as well as dropping conflicts of attention. The company’s obligation to the application of governance morals does the role of shareholders in sharing in the key decisions related to the management of the company and knowing all that relates to their investments. Other stakeholders: Governance seeks to build a close and strong relationship among the management of its employees, suppliers, creditors, and others. Good governance improves the level of confidence of all customers to contribute to the company’s performance and realizing its strategic objectives.
Corporate Governance in the Sultanate of Oman
Corporate governance in the Sultanate of Oman is one of the oldest in the Gulf county. The business situation in Oman is not very diverse from those in the GCC. Governments and the family businesses are the main drivers of the productive sectors of the economy in these countries not long ago. “Every action has an equal and opposite reaction to it in the direction.” One of Newton’s laws, in many countries of the world, we can say that this is the state of regulation and its development, especially the subject of corporate governance.
We always see regulations and concern for corporate governance stemmed from apostasy we can say that, in accordance with the strength of the market shake, and the gradation of influence on market members, the legislators will be affected by the speed of growth of governance systems. The 2010 Al Quality notes that one of the reasons for the breakdown of the Muscat Securities Market in 1998 was the part of the market itself in the roles of “control, trading, advertising, deposit, transfer, record keeping, foreclosure and securities” Which led to a focus on the daily market roles at the expense of the supervisory role. This has run to the fall of the stock market unpredictably. Since that date, specifically in November 1998, the market reform has begun through the reform of related sectors and the separation of the various purposes resulting in the creation of three separate bodies.
Ethics of the profession of accounting and auditing
The ethics of the career of accounting and auditing has been clear as an education of the moral principles and guidelines of practicing the profession of accounting missing from useful ethics, which resources a study of ethical difficulties, choices, and ideals in jobs and professions. Explicit attitudes, and how to apply models and value concepts in a given context
It is also clear as a set of customs, principles, and customs based on the profession, which contains the economic security of society. Moreover, several ethical responsibilities also have an overall ethical basis. They are also definite as professional rules of conduct. High level of performance during a declaration of confident activity.
It was also defined as a professional ethical obligation to practice the profession of accounting based on accepted rules, rules and principles of the profession
Importance of Accounting and Auditing Ethics:
The importance of ethics in the rationalization of human performance is shown in the fact that this behavior is essentially related to relationships with others and that each of the parties to these relations seeks to maximize its advantage, which creates a conflict between these benefits and the lack of ethical controls that lead to harm to the parties of the dealings of others, To balance the competing interests for the good of all and their pleasure and these scales are ethical values.
The importance of ethics in society stems from the fact that the formulation of rules has been carried out within the basis of ethical values, for instance, laws on how to deal with people who drive drunk vehicles or individuals who sell drugs to threaten the safety of society and other individuals, A company has sold a imperfect product, which must remain responsible for the harm caused to individuals who decide to resort to process through the judicial system.
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Husaini, D. A. M. A., 2011. http://www.aleqt.com. Online Available at: http://www.aleqt.com/2011/05/18/article_539336.htmlAccessed 7 November 2018.
Mohammed, H. A. A., 2017. http://repository.neelain.edu.sd. Online Available at: http://repository.neelain.edu.sd:8080/jspui/bitstream/123456789/11510/1/%D8%A8%D8%AD%D8%AB%20%D9%87%D9%8A%D8%AB%D9%85%20%D8%B9%D8%A7%D8%A8%D8%AF%D9%8A%D9%86%20%D8%B9%D8%A8%D8%A7%D8%B3.pdfAccessed 6 November 2018.