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It is necessary to indentify and manage opportunities and risks associated with supply chains.
Because CG ensures that our suppliers are free from child labour, expolitation, long work hours with low wage,etc... From the customer perspective its about CSR complaince where we care customer more than the money.
Corporate governance entails the system by which corporations are directed, controlled and the governing structures should specify the distribution of rights and responsibilities. Corporate governance is centred on corporate social responsibility. It ensures shareholder's profit maximisation and stakeholder satisfaction.
Due to a great increase in cases of product failure and product harm, corporate governance ensures corporate social responsibility is considered core to any business to encourage stakeholder satisfaction (Shareholders, customers and all other business stakeholders). In Supply Chain Management, corporate governance will greatly reduce cases of fraud, product harm crisis and corruption. Corporate governance encourages supply chain professionals to maintain integrity and transparency in all transactions.
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