A Summary On Corporate Governance Essay

A Summary On Corporate Governance Essay

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In A Primer on Corporate Governance, de Kluyver provides and introduction and understanding of corporate governance and looks at the relationship between governance and society. Corporate governance deals with the activities, rules and procedures by which corporate activity is directed. According to de Kluyver (2013) this book can help prepare individuals who wish to work with or serve on a board of directors and expand their perspective from a focus on management to one on governance. Giving us a better understanding on the relationship between governance and society, de Kluyver explains how corporate governance greatly impacts the responsibilities that tie a corporation’s management, shareholders and board of directors together. He argues the importance for us to see our social structure as being more than just about the interests of investors and shareholders and argues that the debate in corporate governances “is about making corporate power compatible with needs of a democratic society”. de Kluyver believes current corporations have created great wealth for individuals and allowed them the ability to express their “genius and develop their talents” but have also placed costs on individuals and society (de Kluyver, 2013). More importantly, de Kluyver believes that the connection between society and corporations has changed over the years due to the corporate governance system evolving from entrepreneurial capitalism to managerial capitalism, and to fiduciary capitalism. The book is divided into two parts; the first part, chapters one through four, looks at “corporate governance from a macro perspective” and part two, chapters five through ten, takes a micro perspective and looks closely at different major board responsi...

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...nding of what occurs in the board room and within corporations management. de Kluyver focuses on the importance in the relationship between governance and society and how this relationship can greatly impact the success of the corporation. Another important takeaway from this book is relationship between governance and accountability and how governance has evolved in the U.S. over the years from state to federal laws. Additionally, I found the discussion of whether shareholders own the company to be very insightful and adds to the debate on shareholders versus stakeholders interests (43). A Primer on Corporate Governance is a great tool for business students and both new and seasoned executives in the business world, as it can offer a better understanding of corporations, how they operate and of board of directors’ responsibilities and roles within a corporation.

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