Why is it Important to have Good Corporate Governance in The Management of Foundation?

Abstract

This study talks about the social foundations that are already in place in the structure of the community's socioeconomic activities, as well as how to use Good Corporate Governance (GCC) in these institutions. A literature review is how this article is shown. It includes references to the legal foundations and the results of previous studies on social foundations. There are rules in place that make it official that the Foundation is a legal entity, Law No. 28 of 2004. People think that the Foundation will be able to become a formal legal activity so that it can act as an umbrella for other organizations that are set up under it. To achieve this goal, it is very important for the Foundation to use Good Corporate Governance (GCG) in its management. This means that it must be transparent, accountable, responsible, and fair. In the future, this will give the Foundation a lot of power when it comes to good management in line with the goals that were set.