Corporate Accountability

Corporate Accountability

Table of Contents Page

1.0 Introduction…………………………………………………………………….3

2.0 The UK and the USA approaches………………………………………………3

3.0 Critical Evaluation of the use of the different Approaches…………………....4

3.1 The UK Rule-based Approach…………………………………………...4

3.2 The U.S.A Principle-based Approach……………………………………6

4.0 Evaluation of the reflection of specific systems…………………………………..7

5.0 Conclusion……………………………………………………………………….....8

Corporate Accountability

1.0 Introduction

Although the definition of corporate governance varies from one person to another, it is indicated that the 1992 United Kingdom Cadbury Report as well as the South African King Report of 1994 defined corporate governance as a system through which companies are controlled and directed. A much broader definition is however provided by the 1999 Organization for Economic Co-operation and Development (OECD), which describes corporate governance as the existing relationships between a company’s board, shareholders and other stakeholders involved. Furthermore, the definition stipulates that, corporate governance avails a structure through which the company objectives are set and the how these objectives are to be attained and monitored is also determined by corporate governance. Corporate governance in the UK and the USA however has frameworks that are predictable under distinct approaches.

2.0 The UK and the USA approaches

Corporate Governance frameworks in the UK are predicted using the rule-based approach while in USA it is the principle-based approach that is utilized. The U.K rule –based approach is basically controlled by the existing market and the lack of enforcement. In this approach to corporate governa...

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...porate governance.

References

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