Corporate Governance Codes between Indonesia and the UAE - Capstone Project Example

The paper "Corporate Governance Codes between Indonesia and the UAE" is a perfect example of a management capstone project. The research is a comparative study of the corporate governance codes of two countries similar in nature in terms of the time of implementation of the corporate governance codes and highly differentiated in terms of levels of economic activity. The study is a comparison of the corporate governance codes of Indonesia and the UAE. The code was revised and enacted in Indonesia in 2006 while the code for corporate governance became legal in 2006 for UAE.

UAE is the country that is marked by very high levels of economic activity while Indonesia is a developing nation that is yet to come fully forth to the global economic forefront. The study brings forth an analysis of the difference in the basic code of corporate governance and also the factors that influence and impact the formation of such codes. Through such an analysis of corporate governance codes, the study aims to highlight the positive aspects and also find out the scope for improvement in these codes after understanding the relevance and importance of corporate governance in nations.

Corporate governance is a blend of laws, rules and regulations as well as voluntary and appropriate practices within the private sector (Aldin et al., 2014). Research scholars like Kumar and Sharma (2006) and Ammanna, Oesch and Schmid (2011) pointed out that corporate governance can be considered as long term business sustainability mechanism for companies. Through the incorporation of corporate governance codes, firms can do business in a transparent manner and deliver long-run economic value for shareholders.

In order to implement corporate governance codes efficiently, firms need to show mutual and equal respect for society as well as shareholders on the whole (Aldin et al., 2014). Sifuna (2012) defined corporate governance as, “a system of law and sound approaches by which corporations are directed and controlled focusing on the internal and external corporate structures with the intention of monitoring the actions of management and directors and thereby mitigating agency risks”. In simple words, corporate governance can be conceptualized as a set of rules and procedures that can help companies to ensure ethical business operation and take care of the interest of stakeholders.