Got a tricky question? Receive an answer from students like you! Try us!

Ethics, Corporate Governance and Social Responsible Investemtn - Essay Example

Only on StudentShare
Masters
Essay
Finance & Accounting
Pages 12 (3012 words)

Summary

Ethics, Corporate Governance and Social Responsible Investment Name University Course Instructor Date Section A A mandatory system of governance has strict rules that must be observed by all market players. Any firm that fails to adhere to these rules is fined according to the legal requirements…

Extract of sample
Ethics, Corporate Governance and Social Responsible Investemtn

A number of other major economies have however embraced the adoption of the enabling mode of governance and rejected the mandatory corporate governance. A number of differences exist between these two systems as outlined by Anand, (2005). Mandatory corporate governance is practiced in major states of the United States, a mandatory system provides guarantee that firms in this system will have to implement any reforms that market regulators put in place. This is contrary to the enabling governance where nothing guarantees a fair play and the enforcement of implementation of any changes. Enabling governance has the ability to ensure that there is compliance to regulatory mechanisms especially when it is implemented together with mandatory disclosure of organizations practices. Mandatory system is also slightly more costly to implement when compared to the enabling governance style (Anand, Milne, and purda, 2006). Mandatory corporate governance is majorly practiced in the United States while the United Kingdom practices the enabling kind of governance. Canada and Australia are other major countries that also practice the enabling kind of governance apart of the United Kingdom. The United States mandatory governance is however a blend of the two systems. ...
Download paper
Not exactly what you need?

Related Essays

Corporate governance
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 agents are bestowed with the responsibility of managing the company on behalf of the company’s owners or principals. While these agents have informational advantage, the principals have to rely on the board appointed by…
16 pages (4016 words)
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…
4 pages (1004 words)
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)
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)
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)
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)
Corporate Governance & Ethics
The drugs manufactured by the company targets diseases such as asthma, viruses, infectious diseases, diabetes and digestion related complications (Mathew, 2011). The drug Industry controls a significant amount of the global revenue with drugs constituting over 10% of medical cost in the United States. It is also considered as one of the fastest growing segment in the world economy with significant research being conducted with pharmaceutical giants like GlaxoSmithKline international. A number of patents and ethical issues that guide the processes of drug discovery, clinical trials and…
14 pages (3514 words)