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an analysis of corporate governance
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INTRODUCTION
Corporate governance is nothing but the set of rules, ethics, values, morals, principles, regulations, and procedures. Corporate governance is a system where directors and management are entrusted with tasks, duties and responsibilities in relation to the affairs of the Company.
The term “governance” refers to controlling a company, an organization or corporate bodies. Corporate governance controls and governs the ethics, principles, values, morals. For effective corporate governance, the policies should be as such that the director’s of the company should understand their duties and responsibilities towards the company and should act in the interest of the company.
HISTORY OF CORPORATE GOVERNANCE
The concept of corporate governance
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EVOLUTION OF CORPORATE GOVERNANCE
Corporate governance has great importance on a business that has impact on the profitability, sustainability, and growth of business. It is a multi-tiered process that is filtered from an organization’s policies, ethics, values and culture, particularly of the people who is running the business and the way it deals with various stakeholders.
Creating values that not only is profitable but sustainable in the long –term interests to the business of all stakeholders necessarily means that businesses have to run with a high degree of ethical conduct and good governance
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CII is the India’s largest industry and business association which came with the first code of corporate governance in the year 1998. The CII has set up a committee to inspect corporate governance issues and recommend a voluntary code of finest practices. CII drew up a voluntary corporate governance code from the model known as Anglo-Sazon model of corporate governance. The code was first drafted and prepared in April 1997, and the resulted documented names as Desirable Corporate Governance. A code was released publicly in the month of April 1998. The code contained comprehensive provisions focused on listed companies. The CII code was welcomed with much fanfare and even adopted by few companies. It was felt that statutory code would be more purposive and significant under Indian conditions in respect of corporate
"Principles of Corporate Governance." 2012. The Harvard School of Law Forum. Ed. Noam Noked. Web. 2 April 2014. .
It is not surprising that a corporate or IT governance is largely debatable and dominant business topic nowadays (Weill & Ross, 2013). That is why there is such a significant number of the guidelines published on the issue. Anyway, it is highly important that these guidelines are being applied properly. The board of the organization is considered to be responsible for the implementation of these guidelines and principles (Weill & Ross, 2013). Nevertheless, the principles may vary considering the organization approaches. The application of the particular organization approach predetermines the principles a board is being guided by.
Corporate governance is the system of practices that provides a framework for company’s goals and objectives. Comcast should develop a corporate governance plan that outlines what needs to be done to achieve their goal- strengthening their customer service. Below I am going to explain what I believe will benefit the company and increase its servicing skills.
Previous academic studies confirmed a statistically significant positive relationship between corporate governance mechanisms, CSR and company performance (Harjoto & Jo, 2011; Neubaum & Zahra, 2006; Johnson & Greening, 1999; Stuebs & Sum, 2015). Therefore, Johnson & Greening (1999) concluded that corporate governance mechanisms affect the relationship between CSR and company performance and that these mechanisms are crucial to incorporate. Based on previous literature, board structure, managerial incentives, antitakeover measures and ownership structure can be determined as the main components of corporate governance (Gillan, 2006; Bhagat & Bolton, 2008). Nevertheless, Hess (2007) argued that the term corporate governance is expanding and that the term no longer includes only the traditional components such as managerial compensation, board structure and antitakeover devises. The author concluded that non-financial criteria, such as sustainability and CSR are also incorporated in the term corporate governance nowadays (Hess, 2007). Through CSR and sustainability, companies are more long-term focused, reduce risk and improve shareholder value creation (Hess, 2007).
Corporate governance is deliberate and sustained efforts by the firm to update, improve, systematize and adjust its internal regulations and guidelines. World over corporations have been under sustained attack for continued improvement in performance at expense of moral or social issues. Good corporate governance involves financiers and other stake holders of an entity getting value for their investment. This, therefore, can be viewed from agency perspective where the ownership and control is separate. An ideal corporate governance practice does not only involve the fight between shareholders and directors but the ethos of an entity and achieving its set goals. According to Shleifer and Vishny (1997) the core objective of corporate governance in which mostly applies to Anglo-American companies, involves design of incentives which will maximize return on equity given that the ownership and control is separate.
Bibliography: Turnbull, S. (1997). Corporate governance: its scope, concerns and theories. Corporate Governance: An International Review, 5 (4), pp. 180--205.
The corporate culture and Core Values instilled in each and every employee provide them with a moral compass which essentially drives the Group’s commitment on doing business with integrity to achieve sustainable growth.
In our study of corporate governance and its impact on the overall economic and business environment, we have considered the example of Japanese Corporate governance and have compared it with other systems. We will study the comparative performances of the companies working in the Japanese system of corporate governance and the organizations working in other systems of corporate governance, primarily that of the United States. We have discussed the concept of corporate governance as well as management practices in detail and have tried to identify the difficulties and the barriers the company’s usually face while following a specific system of corporate governance. The detailed description of the corporate governance concept is primarily derived from the works of several management experts. We have considered the most commonly used concept of corporate governance in our study and have accordingly proposed the solutions to the problems that the companies usually face while adopting a certain system of management. In the next chapter we will discuss the issue of corporate governance in relation to the example that we have considered in the beginning of our study. Instruments: The literature review will be helpful in obtaining certain useful information relating to the study. This information will include: the history of the Japanese business organizations, their management practices, their decision making procedures, their business philosophies and other issues related to their system of corporate governance. In addition to this, the organizational performance of Japanese business entities, as compared to other organizations will be studied. The information thus obtained will be used to identify the effects of Japanese system of co...
Corporate Governance is the method of practices, process and rules which an organization follows and is controlled by it. In academic literature, first used by Richard Ells in 1960 to refer to the functioning and structure of corporate polity. The term “Corporate Government” is basically connected with listed proper corporations where the control, ownership separation and growing agency conflicts are apparent.
Corporate governance is basically cares about subjects of ownership and control inside the organization (Berle and Means, 1932). It puts the expressions and situations of the legal portion of possessions rights between the diverse stakeholder. Corporate governance also affects the stakeholder incentives and therefore their enthusiasm to collaborate with each other in productive actions. To distribute the responsibility of production, process enhancement and innovation has been revealed to significantly enhance performance of the organization by collaboration of stakeholders in the production activity, practices and loyalty for meeting goals of organization. Corporate governance
Corporate governance is the policies, rules and regulations, by which a corporation shapes the way corporate officers, managers, and stakeholders perform their duties to create wealth for the entity. According to Lipman (2006), good corporate governance helps to prevent corporate scandals, fraud, and potential civil and criminal liability of the organization (p. 3). Most companies, whether formal or informal, have some type of corporate governance for the management to follow. Large companies will have a formal set of rules and regulations, while small companies frequently have spoken rules often due to lack time to form any type of formal policies. There is often no corporate governance with family owned companies.
Nottingham Trent University. (2013). Lecture 1 - An Introduction to Corporate Governance. Available: https://now.ntu.ac.uk/d2l/le/content/248250/viewContent/1053845/View. Last accessed 16th Dec 2013.
The office of the Director of Corporate Enforcement (ODCE, 2015), Ireland defines Corporate Governance as “the system, principles and process by which organisations are directed and controlled. The principles underlying corporate governance are based on conducting the business with integrity and fairness, being transparent with regard to all transactions, making all the necessary disclosures and decisions and complying with all the laws of the land”. It is the system for protecting and advancing the shareholder’s interest by setting strategic direction for the firm and achieving them by electing and monitoring the capable management (Solomon, 2010). It is the process of protecting the stakes of various parties that have their interest attached with a company (Fernando, 2009). Corporate governance is the procedure through which the management of the company is achieving the goals of various stake holders (Becht, Macro, Patrick and Alisa,
Corporate governance is the set of guidelines that determines the control and organization of a particular company. The company’s board of directors is in charge of approving and reviewing changes to this set of formally established guidelines. Companies have to keep in mind the interests of multiple stakeholders, parties who have an interest in the company. Some of these stakeholders include customers, shareholders, management, and suppliers. Corporate governance’s focus is concentrated on the rights and obligations of three stakeholder groups in particular: the board of directors, management, and shareholders. Corporate governance determines how power is split between these three stakeholders. A company’s board of directors is the main stakeholder that influences the corporate governance of a company (Corporate Governance).
Based on this article, Malaysia involved in the economic crisis in the end of 1997. The Malaysian economic downturn exposed the consequences of poor corporate governance and prompted the formation of a high level Finance Committee on Corporate Governance (FCCG). The main focus of FCCG is to review and reform corporate governance in Malaysia comprehensively. In order to make a reformation, FCCG has played their role by sets out the principles of good corporate governance for Malaysia as a guideline and also proposes the code of best practice for companies. All of the recommendations of these principles are to strengthen laws, enhance disclosure and transparency, promote effective enforcement and emphasis on training of directors. Malaysian Code emerged from an urgent demand for businesses to exhibit greater transparency and accountability as it is largely modeled after the UK Codes. In UK, listed company under London Stock Exchange must disclose in their annual report the extent of compliance. The Hampel report’s main objective is to produce a set of general principles that allow flexibility in interpretation. Then the UK Code Combined derived from the Hampel report. So, there are similarity that we can see here when all companies in Bursa Malaysia are al...