Corporate Governance at the Central of Seychelles - Coursework Example

In fact, Seychelles is a good performer in relation the governance. The subsequent efforts by the Central Bank of Seychelles (CBS) to carry out reform programs on the lines of economic stabilization policies and fulfilling reform objectives have produced significant results in Seychelle's economic progress (Ioannidou, 2005). Thus this research focuses on the strategic policy alternatives that the Bank has adopted and the impact on the stakeholder benefits.

Seychelles has gone through an IMF-initiated reform program and the success has been remarkable. According to the IMF economic performance has been much more positive on the aft4ermath of the reform process. This researcher has made a convincing effort to understand the role of Corporate Governance in the process.

Research questions

• How far has the IMF reform program impacted the economic performance of Seychelles?
• What is the role of corporate governance of Seychelles Central Bank during the IMF reform process?
• What are the significant benefits to stakeholders which are identified in the IMF reform program?

 Literature Review

Corporate governance refers to systemic control through policies, rules, customs, practices, procedures, and so on affecting the way an organization is administered and directed. Critics have pointed that a primary concern of corporate governance is to engender accountability on the part of members of the organization so that the principal-agent problem can be reduced to a certain extent. It places emphasis on governor control. Next to the theoretical postulate emphasizes economic efficiency through maximizing stakeholder benefits. Thomas (2004) defines corporate governance as “an internal system encompassing policies, processes, and people, which serves the needs of shareholders and other stakeholders, by directing and controlling management activities with good business savvy, objectivity, accountability, and integrity.