A statutory response to Corporate Governance: A Critique - Essay Example

Taking into account the above facts, the use of research in the examination and the analysis of this issue will offer appropriate explanations regarding the various aspects of this issue and its importance for the scientific research. The justification of the value of this issue is therefore a significant part of the research analysis related with the specific issue. Current paper focuses on the examination and the comparison of the corporate governance practices followed in UK and USA. The extensive reforms that have taken place in the particular sector have led to the development of many doubts regarding the effectiveness and the credibility of the corporate governance systems applied on these two countries.

For this reason, the examination of the particular issue is considered to be really valuable offering to researchers and managers around the world the chance to understand the various aspects of corporate governance and align (where possible) the business strategies with the relevant corporate governance principles applied on each specific market (referring to the cases of UK and USA). Moreover, this study could help to the identification of any potential weaknesses of the corporate governance policies applied on UK and USA suggesting appropriate reforms on the relevant rules.

Business activities around the world have often caused the interest of governments within the particular states. The reason is that all parts of these activities need to be appropriately regulated in order to offer adequate and effective protection to the stakeholders and the public in general (referring mostly to protection from severe financial losses that can threat the viability of the company but even the level of the development of the local economy – when the firm under examination is a well established one, see the case of Enron).

However, because there are many differences in corporate structure internationally, it is necessary for legislators to