Articles on Corporate Governance
Corporate Governance is a disclosure organizations financial situation, performance, ownership and governance, relationship with shareholders and commitment to business ethics and values.
A corporation can be defined as a structure where different parties come together and each provides capital, labor or expertise to maximize profits for all of them.
Corporate Governance has been in the news for the last decade or so following a spate of scandals that engulfed companies like Enron which led to their collapse because of mismanagement. Lets understand what is good corporate governance.
The role of the government in regulating the corporates has gained more importance in these changing economic times. Lets discuss the role of government in corporate governance in detail.
It is hard to establish the accountability and responsibility of corporate decisions. It is important that the corporate decisions should be moral with social goals along with the business goals.
The corporate behavior tends to have a direct or an indirect impact on the economic state of the country they operate in. Lets understand the significance and impact of corporate behavior in detail.
Lets look at some of the most important factors that drive corporate behavior from the perspective of good corporate governance.
The financial crisis across the globe have highlighted the behavior that can be described as mismanagement and not keeping in accordance with good corporate governance.
In this article, we look at the specifics of how the financial crisis has impacted corporate governance and discuss some emerging best practices as a result of the crisis.
Nowadays, there has been an increasing emphasis on governing corporations according to social and environmental norms and ensuring that the negative externalities associated with them are minimized.
Institutional Investors have a critical role to play in promoting good corporate governance and ensuring that organizations are run according to standard and regulatory norms and procedures.
This article discusses the need for a Uniform International Corporate Governance Code to deal with the challenges of globalization wherein transnational corporations operated in multiple continents and varied regions. The discussion in this article examines the various arguments for and against such a code from multiple perspectives.
Independent Directors are selected from a pool of professional who have had wide industry experience and are qualified to sit on the boards of the companies.
Board of Directors is a body that is above the management and is accountable to the regulators and shareholders for the decisions taken by the management.
Any public limited or a private company needs to have a board of directors. The Board of Directors are the final authority as far as the company is concerned.
When the Board of Direcors and the Management coexist together in a harmonious manner then only there be true progress of the organization. Lets understand in detail about the relationship between the board and the management.
The expectations from the management can be of many types. The article discusses in detail about relationship between the corporate governance and the expectations from the management.
Any public limited or private limited company has shareholders who contribute capital towards the setting up of the company. The article discusses some of the key responsibilities of shareholders.
The article looks at the various forms of shareholder ownership that are common in organizations in the corporate world.
Lets look at the distinction between shareholder ownership and control and see how this comparison plays out in the corporate world.
This article explains the issue of differentiated voting rights. The examples of French and Italian government are also given. This article also lists down the pros and cons of the issue.
This article explains the various steps involved in the book building process in detail. It also lists down the flexibility and advantages that book building provides over the traditional fixed price mechanism.
The article looks at the various ways in corporate governance is practiced in the developed economies of the West and in the developing economies in the rest of the world.
In this article, we discuss the need for good corporate governance as a metaphor for how well the economy is functioning.
This article is a primer on what auditing is, the purposes, the types, and the objectives of audits. In addition, the article explains what internal and external audits are and how they differ and the reasons why organizations are required by regulators to perform audits. Apart from this, this article also discusses the financial audits as well as the strategic and operational audits and goes into detail about the IT audits that are increasingly becoming popular. Finally, the article lists some issues that have arisen in recent years in the auditing profession.
This article discusses the networks of relationships between corporates and auditors, certifiers, and consultants, and how the chances for collusion mean that unethical and poor corporate governance result. The key theme in this article is that changes in company law have made it tougher for such collusion in recent times, but the best way forward would be for self-regulation and professionalism.
This article examines the arguments for and against Asian Firms adopting American Corporate Governance Frameworks. The key argument for such practices is the need to globalize, and the key argument against such blind adoption has to be viewed in the context of the serious misgivings that many around the world have about the double standards and the hypocrisy of the Western attempts to impose their dictates on the rest of the world.
This article examines how effective corporate governance has to be practiced at all levels of the organization and not simply remain empty vision and meaningless mission statements. The discussion is around some recent scandals involving a diverse set of corporates worldwide with the central theme that the vision of the leaders has to be imbued at all levels and the mission implemented and practiced accordingly.
This article examines how corporate governance has come under fire in recent months as can be seen from the examples of the TATA Group, Infosys, and Uber. The key theme of this article is that there must be a balance between risk taking and passivity, moralistic principles and realistic actions, and above all, an emphasis on continuity and longer-term sustainability.
This article examines the problems being faced by Infosys from a generational perspective. We argue that differing visions and perceptions due to generational differences can explain some of the issues related to corporate governance that are at the heart of the debate in Infosys. In addition, this article also makes a case for a debate and discussion between the Gen X who are now taking over from the Baby Boomers in many firms over these issues lest such problems lead to more crises in the future.
We often hear the terms whistleblowers and whistle blowing mentioned in the media. So, what do these terms mean and how do they matter to contemporary corporates? This article examines what whistleblowers do and how they must be handled. In addition, this article also discusses the reasons for anonymity and confidentiality that whistleblowers and their complaints must be accorded as well as makes a case for such complaints to be investigated by due diligence.
There is a need to make corporations accountable for their actions. While some corporations do follow norms and procedures voluntarily, there are others that flout the laws and cause loss of human and ecosystem life as well as money. Given the fact that governments worldwide are friendly towards corporations, there is a need to mobilize the masses for this cause. Further, conscientious, and socially conscious business leaders have an important role to play in this aspect.
The emergence and rise of activist shareholders in recent years have forced the boards of companies to address and acknowledge issues related to corporate governance instead of brushing them aside or engaging in cover-ups. This article discusses how the activist shareholders have brought a whiff of fresh air to the opaque world of corporate governance and have forced the companies and the boards to act in more democratic ways.
It would be an understatement to say that there is a crisis in corporate governance. The Board of Directors of corporates is ultimately responsible for oversight and regulatory compliance. Thus, any attempt at reform must start there. It is not always easy to actualize good corporate governance overnight. Like a sampling that needs to be nourished and looked after, good corporate governance needs time and patience. Future business leaders can draw some insights and lessons from these trends and the discussion in this article.
Corporate Philanthropy in contemporary times is an essential and effective mechanism for complementing and supplementing the governmental initiatives for helping the needy and the underprivileged. More so when the corporate visionaries who are behind such initiatives use their personal goodwill and respect to drive philanthropic initiatives. This article examines these themes with real world examples from the Bill and Melinda Gates Foundation to illustrate how corporate philanthropy works in the contemporary world and how it impacts societies worldwide.
In an age of Fake News and a Post Truth era, it does not take long for anyone to tarnish the hard earned reputations of corporates and shred their brand image and brand loyalty among consumers. This is the reason why corporates must take steps to protect their reputations from malicious forces. Even if mainstream media is friendly with corporates, the sheer number of sources and websites on the internet make it easy for anyone and everyone and from anywhere and everywhere to cause damage to them.
This article argues that there must be efforts to fix systemic issues related to corporate governance rather than token resignations and then, business as usual approaches. Using examples from the corporates worldwide, we make a case for an entirely new approach of moving beyond the periodic booms and busts of market driven firms and instead, there must be a systemic approach to ending the culture of repeating instances of corporate malfeasance. Further, we also caution against cover-ups and other forms of window dressing that would demoralize the workforce as well as examine the roles of each stakeholder in this endeavor.
This article discusses how corporates can avoid their workplaces becoming toxic and at the same time, allowing free speech in the workplaces. We argue that there are some steps that corporates can take to contain political discussions among their employees and regulate social media posts by firing those who made objectionable comments. We suggest that services sector firms learn from unionized manufacturing firms on how to manage dissent.
This article uses the examples of Wirecard and Infosys to argue for a new approach by corporates and regulators on dealing with whistleblowers. We also call for legislation that protects whistleblowers, who often take great risks to go public with their allegations. In addition, we caution that without whistleblowers, entire firms can become insolvent if frauds are not detected in time leading to systemic collapse and ruined careers.
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