corporate governance - Coursework Example

Only on StudentShare

Extract of sample
corporate governance

It is consisted of rules, which govern the relationships between stakeholders, shareholders and management (Ching et al, 2006). In the 1980s and early 1990s, some huge corporate scandals shocked the entire commercial world. Majority of the investors had lost their confidence over management of their investments; the entire commercial world was filled with distrust. To control this damage, different approaches are used such as corporate governance. In UK, Combined Codes consisting of various reports has been developed-Cadbury, Higgs, Smith, Greenbury. These reports discuss how a Board of Directors should operate; what role non-executive directors can play; how the external auditor should be strengthened and so on. Stakeholder approach and corporate governance Stakeholder theory is defined as any group or individual who can affect or is affected by the achievement of the organization’s objectives (Abdullah and valentine, 2009).Stakeholder approach defines an organisation being a member and citizen of society, enjoys a protection, benefits and so on. On the basis of this concept, organisations being a member of the society are remain accountable to all the stakeholders such as environmental groups, customers, governments, regulatory authorities, indigenous population and so on. ...
Download paper

Summary

Question No 1: Should the CEO chair the board? Briefly discuss this from the perspectives of the stakeholder and agency approaches to corporate governance, highlighting the advantages and disadvantages of each approach as a way of analysing this issue Answer Chief Executive Officer (CEO) chairing the board means a possibility of scandals cannot be avoided…
Author : danika89

Related Essays

The development of corporate governance code in UK since 1992
The essay discusses that corporate failures such Maxwell Publishing Group, BCCI, Poly Peck and Coloroll in 1980s and early 1990s in UK brought the issue of corporate governance practices by publicly listed organizations. There is no set definition of corporate governance and mostly depends upon the specific country’s view and oversight of the issue. Generally, it is known as a system of rules and principles as to how an organization should be governed and controlled. The roots of corporate governance lie in ‘Agency Theory’, which explains the problem of principal-agent. The managers or...
16 pages (4016 words) Essay
corporate governance
Cadbury Report highlights the role of Chairman and Chief Executive Officer. The Chairman must not be allowed to become CEO and the same is applicable to the vice versa at the same. The Chairman is primarily responsible for the board’s working, and for its membership balance subject to board and approval of shareholders (ecgi, web). The Greenbury report focuses on the directors’ remuneration (icaew). The fundamental aim of this report is to identify good practice in identifying and determining directors’ remuneration; besides reporting a code of practice for UK PLCs. The Hampel report was...
4 pages (1004 words) Coursework
International corporate governance
he corporate sector of Australia has previously been regarded to hold the same core features as those of the United States and the United Kingdom.7 These issues will be discussed thoroughly in the later sections.
14 pages (3514 words) Coursework
Importance of Corporate governance
However, different types of definitions are provided in various reports. A very simple definition can be found in the reports like South African King Report and Kingdom Cadbury Report. In these reports corporate governance is defined as a “system by which companies are directed and controlled” (du Plessis, et al, 2010). Clearer definitions began to come after two big companies namely Enron and HIH Insurance Ltd collapsed. In 2007, Australian Securities Exchange (ASX) released a proper definition where corporate governance is said to be a framework of rules, systems, processes and...
8 pages (2008 words) Essay
Finance - Corporate Governance
How do the investors of a company ensure that the managers of a company are not involved in stealing their money or making bad investments in some projects? How do the investors exercise their control over the managers of the company? This study discusses all relevant issues related to answering all these three questions mentioned above. The discretionary powers and regulatory controls of primary investors of an organisation like the shareholders and creditors of the company have all been discussed in this study. 1. Corporate Governance – Definition One particular formal definition cannot be...
10 pages (2510 words) Essay
corporate governance
The Fraud was first discovered when its budget and financial Analyst Kim Emigh blew the whistle in December of 2000 when he asked engineers in Richardson, Texas unit and elsewhere to stop charging their time for long term projects to capital expenditures (Young 2002). It was also when he told his accounting manager Frank Guckes after receiving an email to charge it to another account that it is fraud and that it is a SEC violation that he should make everybody aware of it because Kim Emigh will (Young 2002). Ten weeks later, Kim Emigh was fired which prompted him to sue WorldCom leading to a...
4 pages (1004 words) Essay
Corporate Governance and Ethics
In addition to that it also explains the causes of failure of the leaders of GSK in preventing ethical issues related to integrity failures. Task 2 explains bribery as an ethical issue particularly for companies undertaking international business. It also investigates the ethical and moral issues of bribery and the difficulties that cultural relativism introduces to business ethics. And finally task 2 comments on the steps that GSK should take in order to prevent future ethical dilemmas and reputational damage from perceived failures of ethical and moral conduct. Table of Contents Table of...
14 pages (3514 words) Case Study
Got a tricky question? Receive an answer from students like you! Try us!