The Principle.of Good Corporate Governance

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Basically Good Corporate Governance is the system (input, process, output) and the set of regulation which organize the relation among stakeholders especially in narrow meaning the relation between shareholders, board of commissioner, and board of directress to achieve the goal of corporate.

The principle of Good Corporate Governance is below:

a. Transparency, is the openness within conducting the process of taking decision and the openness within proposing material and relevance information about corporate.

b. Independecy, is the condition of the professional management of corporate without any collision interest and influence or pressure from any parties which improper with the applied laws and the good corporation principles.

c. Accountability, is the clearness of the function, of the performance and of the responsibility of organization so that the management of the corporate effectively conducted.

d. Responsibility, is the compatibility within the management of the corporate towards the applied laws and the good corporation principles.

e. Fairness, is the justice and the equivalence within fulfilling the rights of stakeholders based on the treaty and the applied laws.

Good corporate governance is intended to organize these relations and to prevent the significance mistakes happened within the strategy of corporate and to ensure that the mistakes happened can be corrected soon.

Good corporate governance is needed to encourage the efficient, transparent and consistent market with the laws.The application of good corporate governance needs to support by three interrelated pillars, it isstate and the equipment as regulator, business world as businessman, and society as the user of product and service of business world.

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