This paper is aimed at evaluating and analysing the effectiveness of the various corporate governance policies and approaches of USA and United Kingdom. The paper encompasses the historical background and development of corporate governance in United Kingdom. …
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From the research it can be comprehended that governance refers to governing someone with the help of some specified system, policies and principles. Thus corporate governance can be described as the principles, specified processes, policies and systems which are used to govern a company. The principles of corporate governance acts as the guidelines which are used to control the activates of the company so that it can it can achieve its objectives at the same time it can also add value to the organisation in such a way so that the stakeholders can be benefited in long run. Thus corporate governance helps the management to operate in such a way so that not only the shareholders but also the other investors, employees, customer and the society as a whole can be benefited from the actions of the company. The basic premise behind the principles of corporate governance is to enable the organization to conduct its activities with fairness, maintain transparency in its operations and transactions, disclose all the relevant information, comply with all the rules, regulations and laws, being responsible accountable to all its stakeholders and to maintain the code of ethics while conducting its activities. Practice of ethical activities is an important part of the corporate governance. Good corporate governance enables the company to achieve investors’ confidence and achieve goodwill in the industry. Thus corporate governance is not only important for the stakeholders but also for the company too. (Thomson, 2009). OECD has described corporate governance as a system through which companies and other business organisations can be controlled as well as directed. Corporate governance helps to setup a structure as per which the responsibilities and the rights of the various members of the companies like the board of directors, employees, shareholders etc can be specified. Corporate governance set the rules, regulations and the processes of decision making regarding the activities of the company. The corporate governance helps the company in setting up the companies objectives and goals and also enable the company assess its performance and helps in achieving them. Corporate govern
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(“Contemporary Corporate Governance Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
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(Contemporary Corporate Governance Essay Example | Topics and Well Written Essays - 2500 Words)
“Contemporary Corporate Governance Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/business/1393873-contemporary-corporate-governance.
This project is a critical analysis of the four major models of corporate governance i.e. the principal-agent model, the myopic market model, the abuse of executive power model and the stakeholder model. The approaches in each model have been compared to infer which model has the potential of providing the blueprint for future of corporate governance.
The rise and development of corporate governance has brought into perspective the role, position, and importance of different stakeholders of a company. In most cases, the function, capability, and continuity of a company are attached to the behavior and relationships of different stakeholders
Companies in recent years started giving greater emphasis on effective governance with a view to ensure competitive position, attract sufficient capital, guarantee sustainability, and combat corruptions. Corporate governance practices are associated with the development of financial markets, because higher level of governance in most countries are related to larger securities markets and lower costs of external finance (Tang and Wang, 2011, 47).
The interests of various stakeholders and shareholders were compromised by the vested interests. Roberts, McNulty and Stiles (2005) have emphasized the importance of board members of the company who are endowed with huge powers that could be easily misused.
Bob Tricker believes that the term ‘corporate governance’ was hardly in use before 1980s (du Plessis, et al, 2010). Many think that the phrase was started to be visible in the picture of global business after 1990s. It is such a concept that is still believed to be indefinable by several experts.
Indeed, the highly competitive nature of emerging new models of global business has increased the risks and responsibilities of the organizations. Ticker (2009) asserts that in the contemporary environment,
The traditional view was more of closed system thinking (Alphen, 2010). It lacked a well defined hierarchy system. The authority and powers were vested upon the owner of the company. There was no scope of creativity for the workers. The fault in any error
Corporate governance can be understood through various frameworks of the firm. Agency theory is one of those frameworks, and entails the separation of ownership and control of an organisation. In this case,
The aim was to determine how much voltage a teacher was willing to send to the learner and also how much voltage would the teacher send to the learner with an assurance of immunity.
Milgram observed that people would go great extents to obey orders regardless of the fact that
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