StudentShare solutions
Triangle menu

Assessing Corporate Governance in the Real World - Essay Example

Nobody downloaded yet

Extract of sample
Assessing Corporate Governance in the Real World

Corporate governance refers to the structure which ensures that the right questions are asked and checks and balances are in place to make sure that the answers to these questions reflect what is in the best interest of the organization for long-term sustainability of value (Minow & Monks, 2008).
According to Davis (2006) corporate governance can be viewed as a system for optimizing the contributions of a number of stakeholders to a purpose they are persuaded to share. These stakeholders involve shareholders; the board of directors, customers, employees, suppliers, community and the government.
Effective corporate governance has a profound effect on how well a business performs. Organizations which have found effective means of governing their businesses are prosperous and remain prosperous. The board's inability to establish a sound governance model gives rise to the probability of failure of the enterprise (Colley et. al, 2004). The purpose of corporate governance is to ensure the survival and success of the organization (Davis, 2006).
Good corporate governance requires a complex system of strict checks and balances. The three key actors in corporate governance are the management, directors and the shareholders. (Minow & Monks, 2008)
Appropriate implementation of the business concept with goals...
Effective board of directors that carries out responsibilities with integrity and competency
A competent CEO hired by the board to run the business
The CEO's selection of a good business in an industry in which the firm can compete effectively and profitably, with the board's consent
The creation of a valid business concept by the CEO and management with consent of the board.
Appropriate implementation of the business concept with goals and directions set by the board, resource planning and effective execution of plans carried out by CEO and the alignment of board and management objectives with those of shareholders.
A system to ensure that the obligations to stakeholders are met with integrity and under compliance with the laws and regulations.
Full and timely disclosure of the business performance to the investment community
In the book Best Practices in Corporate Governance (2006), the author highlights eight core dimensions of corporate governance. These include;
Identity of the organization which requires the organization to be clearly defined.
Purpose which clarifies what the company aims to do and gives the organization a sense of direction.
Leadership as a driving force behind corporate governance maintains focus on the purpose and enables those involved in working to achieve it.
Distributing power in corporate governance refers to the sharing of power, accounting for its use and avoiding its abuse.
Inclusiveness and communication is significant to corporate governance because it is the basis of trust building, it is the involvement of stakeholders and openness and transparency with them.
The pattern of accountability required
Maximizing effectiveness for the achievement of an agreed purpose.
Ensuring sustainability ...Show more


Davis (2006) cites the definition of corporate governance provided by the Cadbury Committee Report of December 1992 stating that corporate governance is the 'system by which companies are directed and controlled. Boards of directors are responsible for the governance of their companies…
Author : kundemurphy
Assessing Corporate Governance in the Real World essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Assessing Corporate Governance in the Real World"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Assessing the potential impact of institutional investors on corporate governance in China
p.4 Overview ..................................................................... p.5 Background ..................................................................... p.6 Research Description ......................................................... p.9 Methodology .
32 pages (8000 words) Dissertation
Law of corporate governance question ( Criminalising corporate governance failures is a step too far. Discuss )
Keep in mind that while there is a need to compel corporate officers to protect their fiduciary duties through criminal proceedings, there is yet one more aspect which looks at criminalising corporate governance failures as a step to severe. There are legitimate considerations about criminalising corporate governance failures, mainly from social pressures related to protection of public interest or the protection of minority rights, as well as considerations that adopt the rhetoric of deterrence through harsh legal sanctions, signalling deterrence to directors who may think of being in breach of fiduciary duties.
18 pages (4500 words) Essay
Governance and Risk in Finance, Term Project 1
Good corporate governance ensures proper control over the risks concerning that organization. The business of any country may be affected by micro risk and macro risk factors. Micro risk factors are the factors which are within the control of firm and macro risk factors are factors which are beyond the control of firm.
9 pages (2250 words) Essay
Internal audit and corporate governance
It's an ongoing evaluation of the financial wellbeing of a company's operations by its own employees. Employees who carry out this function are called internal auditors. (Coyle, 2005) In an internal audit, the internal auditors determine, assess and supervise an organization's risk management, reporting methodologies, and control practices; at the same time give proposals for advancement.
10 pages (2500 words) Essay
Corporate Finance and Governance
But according to the authors, DCF procedures can work if the management sets realistic hurdle rates, and carefully examines its assumptions. Decision makers need to consider three critical issues: the effects of inflation, the different levels of uncertainty in different phases of a programme, and management's own ability to mitigate risk." (Hodder and Riggs, 1985)
10 pages (2500 words) Essay
The shareholders’ role in governance is to appoint the directors and the auditors and to satisfy themselves that the appropriate governance structure is in place.’ Another definition is cited from the Higgs Report stating that ‘Corporate governance provides and
8 pages (2000 words) Essay
Law of corporate governance question; ( Criminalising corporate governance failures is a step too far. Discuss )
compel corporate officers to protect their fiduciary duties through criminal proceedings, there is yet one more aspect which looks at criminalising corporate governance failures as a step to severe. There are legitimate considerations about criminalising corporate governance
18 pages (4500 words) Essay
Corporate Governance and Accountability
erm stakeholder is used rather than shareholder as corporates have a basic responsibility towards all the different stakeholders) and that their behaviour must be worthy of emulation. The different stakeholders would be the shareholders, customers, employees and society at large
12 pages (3000 words) Essay
Corporate governance in the GCC
Generally, corporate governance can be defined as a framework of policies, rules, laws, customs and institutions that determine how a company or corporation is administered (Andrei and Robert, 1997). Basically, corporate governance is concerned with how
2 pages (500 words) Essay
Corporate governance
Corporate governance can be understood through various frameworks of the firm. Agency theory is one of those frameworks, and entails the separation of ownership and control of an organisation. In this case,
8 pages (2000 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us