Corporate Strategy and Corporate Governance

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Despite the best efforts of academics and regulators alike, issues in corporate governance continue to manifest themselves in the worst ways possible. From the destructive fraud at WorldCom to recent frauds involving hedge funds, from the UK, United States to the Satyam episodes in India, failures of corporate governance have continued to lead to periodic episodes of fraud on a staggering scale.


Corporate governance is simply a term used for the way that companies (corporate) are run and operated (governed). As stated by Colley et al. (2004) there have been a number of definitions for corporate governance, though, it implies as a misunderstanding of companies and the procedures practiced for the assurance of business proceedings preventing the benefit of involved groups such as the investors. It characteristically centers to alleviate the agency predicaments which may occur whilst possession and administration of the business is divided. Such problems can be diminished by means of numerous measures like the internal controls, oversight of administration or boardroom, regulatory oversight, compensation and incentive arrangements and external audits. (Segrestin & Hatchuel, 2008)
According to Vinten (2004) corporate governance relies upon administrative functioning and the concern of communal accountability, the socio-cultural and ecological aspect of corporation practice, and authorized and moral exercises concerning the investors, consumers and shareholders of corporations. ...
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