Strategic Managment - Corporate Governance - Essay Example

Individual commitment to ethics is as much required as the a strong performance on the bourse. Corporate Governance gives companies the basic framework to establish the rules of the game within. On one hand, the companies deal with measurable and quantifiable assets like finances and accounts. On the other are its deep rooted social and environmental commitments to the buyers, suppliers, and the community it works in. Corporate Social Responsibility is that aspect of Corporate Governance that ensures that a company fulfills its social and obligations besides increasing its profits.

In fact, the financial performance of a company, to a great measure rests on the confidence it places in its employees with welfare concepts, ethical trade practices, protecting human values and respect for the environment. We will carry out a discussion into the Corporate Social Responsibility practiced by the UK retail major Marks and Spencer. We will first define corporate governance, then study the Code of Corporate Governance of UK and study its implementation as for as the clause of Corporate Social Responsibility is concerned.

Corporate Governance is the system by which companies are directed and controlled. It provides architecture of accountability (Higgs, 2003).In other words, Corporate Governance is the principles on which a company is controlled, run and operated. . Corporate Governance requires of the Board to instil and maintain confidence in its shareholders by maintaining through transparency and informed of its decisions. Corporate governance is the accountability of a company, its board for protection of the investors’ money.

Often in the past the Boards of companies did not behave responsibly resulting in loss of investor’s money and the confidence. The laws in UK were severely lacking in keeping proper checks and controls on the performance and decision making of executive and non-executive directors. This often