1, which have different purposes:
The basic purpose of governance is to realize the reasonable arrangement and balance of responsibilities and rights, and the goal of management is to realize the goal of enterprise management, that is, to maximize the wealth of enterprises. From the ultimate goal, the two are consistent, and the realization of the basic goal of corporate governance is ultimately to serve the enterprise to achieve its business goals.
So as to meet the interests of stakeholders. Obviously, the establishment or formation of corporate governance mode is to create an environment suitable for corporate management, and ultimately to create wealth and maximize the interests of stakeholders.
2. The subject and object of the two are different:
The main body of corporate governance is stakeholders, mainly including shareholders, creditors, government, employees and communities. Because of the investment in special assets, everyone should participate in corporate governance and safeguard the interests of all parties. The main body of company management is operators, mainly managers and employees, who make daily decisions and deal with basic production and operation problems such as supply, production and sales.
Comparatively speaking, the subjects of corporate governance are more diversified. The object of corporate governance generally includes two levels: the governance of shareholders and other stakeholders to the board of directors, and the governance of the other level refers to the governance of the board of directors to the managers. The objects of company management include supply, production, marketing and personnel management.
3, the environmental impact is different:
From the perspective of legal binding force, corporate governance should not only conform to the advanced legal norms such as Company Law and Securities Law, but also conform to the governance standards put forward by the government or relevant self-regulatory organizations, such as the governance standards for listed companies in China. Therefore, the higher the specification, the stronger the binding force.
In addition to observing the basic laws and regulations, the management of a company generally regards the company as its own business, showing greater freedom and flexibility. In addition, from the perspective of the role of the government, the government can play a greater role in corporate governance through active intervention, because the government is also one of the governance subjects in the modern sense. Of course, the role of the government in the company is different from that in the planned economy era.
4. The information reflected by the capital structure is different:
From the perspective of corporate governance, it embodies the rights and interests of creditors and shareholders, thus embodying their different status and rights. Compared with corporate management, capital structure reflects the financial situation of enterprises, that is, the provision and composition of assets.
5. The basis of realization is different:
Corporate governance is realized through market mechanism and explicit and implicit contracts inside and outside, while corporate management is mainly realized through administrative authority.
6. Different stability:
Generally, the corporate governance structure will remain relatively stable for a long time, which is the need to ensure the healthy and steady development of the company, and the management of the company will often adjust the corresponding management methods and decisions with the constant changes of the market, especially for the specific operation and management level of the company.
Second, the relationship between corporate governance and management
Corporate governance at the level of enterprise system framework and corporate management centered on business decision are two inseparable components of the overall operation of modern enterprises. They influence and interact with each other to promote the realization of the goal of enterprises as the main body of social and economic interests.
1, the ultimate goal of both is the same:
Although their basic goals are different, in the final analysis, they are all to achieve the ultimate goal of the enterprise and maximize the value of the enterprise, thus satisfying the interests of stakeholders.
2. Broadly speaking, corporate management is an extension of corporate governance.
3. They influence and restrict each other:
Although corporate governance standardizes the institutional framework of the company's basic operation and establishes the corresponding operating mechanism, it only provides a stage for the specific operation of enterprises. How to sing opera and play a good show on this stage is a problem of company management. Of course, to sing a bigger and more special drama, it is necessary to put forward new requirements for the stage, so corporate governance also has the problem of adapting to the specific company management environment.
Extended data:
Definition of governance and management
Governance:
1. In the field of political science, the word governance usually refers to national governance, that is, how the government uses its power to manage the country and the people.
2. It is a comprehensive political action aimed at maintaining political order and public affairs. (Translated as management at this time)
Management:
1. Management is a professional function based on performance and responsibility. This is the view put forward by Professor PeterDrucker.
2. Management is decision-making. This is Herb, 1978 Nobel Prize winner in economics. It was put forward by Herb Simon.
3. Management is a process of exerting influence on the system according to its inherent objective laws, so that the system presents a new state.
4. Management is a people-centered coordination activity carried out by social organizations to achieve the expected goals. Implementation, management, operation, supervision and rules. According to the specific situation, please consult the relevant dictionaries to find possible English definitions.
Governance has four characteristics:
1. Governance is not a set of rules, nor an activity, but a process.
2. The establishment of governance is not based on rule, but on reconciliation.
3. Governance involves the public and private sectors.
4. Governance does not mean a formal system, but depends on continuous interaction.
Governance is one of the most common and important activities in human organizations. In the past century, the basic principles and methods of management formed through the study of management activities are collectively called management science.
As a knowledge system, management is the synthesis of management ideas, management principles, management skills and management methods. With the development of management practice, the content of management is constantly enriched, which has become a guide for people to carry out various management activities and effectively achieve management goals.
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