Analizing the Level of Good Corporate Governance(GCG) Implemantation in Small Mediaum Enterprise: Case Study Of CV. Cahaya Abadi
CATRA WIDIYA NUGRAHA (Pembimbing: Arief Surya Irawan, S.E., M.Com), Arief Surya Irawan, S.E., M.Com
Corporate governance becomes main topic in the global business in line with the increasing of complexity as well as pressure of business competition that are faced by many companies. Issue of corporate governance is commonly discussed in big or listed companies, but actually good corporate governance level can be started to apply in small medium enterprise (SME). Corporate governance is a set of rules that govern the relationships among management, company shareholders, and other stakeholders including consumers, creditors, employees, the general public, neighboring people and suppliers (Ching et al., 2006).
One of the purposes of this research is to analyze the level of good corporate governance in a SME using adoption of Corporate Governance Rating Model from CGCG UGM. Since not all parts of the original model can be applied, this research makes adoption of the model to meet the relevant condition in the company. Additionally, in making the adoption, the research does not exclude the five basic principles of corporate governance, namely transparency, accountability and responsibility, responsiveness, independency, and fairness. The functions of important parties inside the company are evaluated using those five principles.
Good corporate governance can generally be applied in any kind of organizations as long as they have corporate structure inside the body of their organizational structure. Strength that a company build from inside can give advantage to its performance in the market. Good corporate governance may become one tool for companies to improve their strength in getting competitive advantage.
Kata Kunci : Corporate Governance, Small Medium Enterprise, Corporate Governance Rating Model CGCG UGM, Basic Principles of Corporate Governance, Participants of Corporate Governance, Adoption of Corporate Governance Rating Model CGCG UGM
