In the early days of the coronavirus, during the Lunar New Year Celebration, I asked my cousin who had worked in Asia years ago if Americans would pay attention to what was happening. The coronavirus family include the common cold, but this virus had never been seen before. Despite reports that 41 people died and 1,400 were infected, my cousin was not optimistic that Americans were paying attention, at least not yet. Early information reported that only a quarter of cases were severe and the dead were mostly elderly people with pre-existing conditions.But the muted reaction in the USA is changing, as it did in China.
Despite the downplay of the severity,pharmacies in Wuhan began to run out of supplies and officials urged people to avoid crowds. Soon the city was on lockdown with no public transportation in or out of the city. McDonald’s and Starbucks closed and the US, France and Russia tried to evacuate their nationals. Disney closed its resort in Shanghai and tourism began to shut down. A friend reported that all of her consulting work in China had been cancelled through May.
At the present moment, when only a few economies of the world have recovered from the global economic crisis that befell, and only spill-over has occurred for the rest, corporate governance has become a vital solution for the economic growth and sustainable development to which every economy aspires.
What is Corporate Governance?
Corporate Governanceis the system of process and rules under which a company is directed and controlled. Corporate Governance isn’t just a set of value statements. There are a significant number of very technical legal requirements that companies must follow in order to demonstrate that they have good corporate governance.
Why good Governance is important
Fundamentally, there is a level of confidence that is associated with a company that is known to have good corporate governance.
Corporate governance is known to be one of the criteria that foreign institutional investors are increasingly depending on when deciding on which companies to invest in.