What is the nature of accountability and how is it applied within a system of corporate governance?

Accountability. Corporate accountability refers to the obligation and responsibility to give an explanation or reason for the company’s actions and conduct.

What is the nature of accountability?

The general sense of accountability is required or expected to justify actions or decisions. It implies that the representatives elected by the people must give explanations of the electorate for all these policies and actions. This is a very important part of democracy-particularly representative form of government.

What is accountability corporate governance?

It’s about having ownership over one’s actions whether the consequences of those actions are good or bad. Thus, accountability covers not only failings, but also accomplishments.

What does accountability mean in governance?

Accountability, in terms of ethics and governance, is equated with answerability, blameworthiness, liability, and the expectation of account-giving. As in an aspect of governance, it has been central to discussions related to problems in the public sector, nonprofit and private (corporate) and individual contexts.

How does accountability and transparency work together?

Transparency and accountability need each other and can be mutually reinforcing. Together they enable citizens to have a say about issues that matter to them and a chance to influence decision-making and hold those making decisions to account.

What is the importance of accountability?

Accountability eliminates the time and effort you spend on distracting activities and other unproductive behavior. When you make people accountable for their actions, you’re effectively teaching them to value their work. When done right, accountability can increase your team members’ skills and confidence.

What are the forms of accountability?

Behn (2001) sorted accountability into four types – accountability for power, performance, justice, and finance. These four types of account- ability can increase trust, democratic behavior, collective responsibility, and the effectiveness of management.

How does accountability contribute to good corporate governance?

Conclusion: The Companies Act provides that the affairs of the business must be managed by or under the authority and direction of the board of directors. Transparency and accountability allow the directors of the company to perform properly, which in turn will allow the company to perform efficiently.

What is the meaning of a good governance and corporate governance?

Good corporate governance means that the processes of disclosure and transparency are followed so as to provide regulators and shareholders as well as the general public with precise and accurate information about the financial, operational and other aspects of the company.

Why is accountability important for good governance?

Accountability basically provides a very important role in creating a good governance activity as a part of improving public confidence in government performance. And then horizontal accountability is the responsibility that is conveyed to the general community.