What Is Corporate Governance?

One issue in Corporate Governance that I will be talking about will be the Corporate Governance Issues for 2015. Before we get in the paper lets first see what Corporate Governance means. What is Corporate Governance? Corporate Governance is the “ framework of rules and practices by which a board of directors ensures accountability, fairness, and transparency in a company's relationship with its all stakeholders (financiers, customers, management, employees, government, and the community).The corporate governance framework consists of (1) explicit and implicit contracts between the company and the stakeholders for distribution of responsibilities, rights, and rewards, (2) procedures for reconciling the sometimes conflicting interests

Where the harmony between these interests is characterized is important to how the organization is managed through state corporate law and government securities control, and the part and obligations of and restricts on investors and executives as for corporate choices. Within the past 15 years the balance in governance roles and responsibilities between shareholders and boards lies with two theories and they are there is too little active and objective board involvement and the second one is there is not enough accountability to shareholders. It says in the article that “The first theory is that there is too little active and objective board involvement. This theory is reflected in the Sarbanes-Oxley Act and its focus on: Improving board attention to financial reporting and compliance. Securities and Exchange Commission (SEC) rules and listing rules on independent audit committees and their function. Director and committee independence and function. And the second theory is that there is not enough accountability to shareholders. This concern is expressed by the focus of the Dodd-Frank Act, and related SEC rules and rule interpretations, on providing greater influence on shareholders through

long-term investment management are having a hard time figure and focus on the short-term results to see in the making of investment necessary position the company for long-term success. Eyewitnesses point to here and now weights of money related markets, which have expanded with the ascent of institutional financial specialists whose venture directors have motivating forces to concentrate on quarterly execution in respect to benchmarks and contending reserves. (Harvard) what I think of this is that short-term returns are more like someone tells me that they can get me more money just by doing this one thing and they will return more then I put in or betting in a fight is kind f like a short-term returns its fast money. But for long-term it is more like an investment like someone buying into subway or I give someone money that is opening up something that people will like going to like a night club that’s investing your money in the long run and hopping that it will be the best thing you ever