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duty of care,
not just to the 
owners
of the company in terms of maximising shareholder value, but also to the 
wider community
of 
interest, or stakeholders.
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CHAPTER 7
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CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY 
 
181 
1.4 Governance principles 
As mentioned above, most corporate governance codes are based on a 
set of principles
founded upon 
ideas of what corporate governance is meant to achieve. This list is based on a number of reports. 
(a) To 
minimise risk
, especially financial, legal and reputational risks, by requiring compliance with 
accepted good practice in the jurisdiction in question and ensuring appropriate systems of 
financial control are in place, in particular systems for monitoring risk, financial control and 
compliance with the law 
(b) To 
ensure
adherence
to and 
satisfaction 
of the 
strategic objectives
of the organisation, thus 
aiding effective management 
(c) To 
fulfil responsibilities to all stakeholders
and to 
minimise potential conflicts of interest
between the owners, managers and wider stakeholder community, however defined and to treat 
each category 
fairly
(d) To 
establish clear accountability
at senior levels within an organisation 
(e) To 
maintain the independence 
of those who scrutinise the behaviour of the organisation and its 
senior executive managers. Independence is particularly important for 
non-executive directors, 
and 
internal and external auditors
(f) To 
provide accurate and timely reporting of trustworthy/independent financial and operational 
data
to both the management and owners/members of the organisation to give them a true and 
balanced picture of what is happening in the organisation
(g) To