Finance & Accounting
Pages 8 (2008 words)
Name: Tutor: Course: Date: University: Development of the U.K. code of Corporate Governance Introduction Corporate governance explores the connections and responsibilities between the board, management, shareholders, and pertinent stakeholders within a legal and regulatory framework.
The paper reviews the development of corporate governance and the outcomes of the changes since 1990 to the culmination of a combined code in 2003, and the impact of the recent bank crisis on corporate governance structures (Lee 2006, p.36). The rise of Corporate Governance Since the 1980s, corporate governance issues have continued to attract immense interests. Issues such as corporate fraud, corporate failure, and corporate collapse, excess of executive remuneration, abuse of management power, and corporate social and environmental responsibility gained prominence, and have continued to attract attention in media reports, academic debates, public forums, regulatory agendas, and governmental policy. However, despite the earlier concerns and subsequent regulatory endeavors, corporate governance issues became even more prominent and exposed with the onset of the global financial crisis 2007-10. Subsequently, some academics, policy analysts, and corporate practitioners have associated the severity and increasingly circular nature of the financial and economic crisis to corporate governance failures, whether functional or technical (Sun, Stewart and Pollard 2011, p.16). In the 1980s, broader stakeholder concerns remained eclipsed by the market-driven, growth- oriented outlooks of Reaganite and Thatcher economics. ...