Corporate Governance Coursework Example | Topics and Well Written Essays - 1500 words - 1

Corporate Governance - Coursework Example patch these people ar usually elected by the Board of Directors or hired based upon their quondam(prenominal) record, professional skills and business acumen- it is sad when they indulge in scandalous behavior that can lead a company to bankruptcy and closure. In recent years we have had corporate scandals involving such well know names as Enron and Worldcom in the USA and Parmalat in Italy. These widely recognized household names had a national or regional presence at least, with some even having business interests in non-homogeneous countries across the globe. This is what makes their demise all the more shocking. What is Corporate Governance? Broadly speaking, Corporate Governance whitethorn be delimitate as a set of laws, rules and principles by which a business is operated and controlled. Some of these rules be set down by law and common business practices and the culture of the land, while others are defined by the owners and those in the higher echelons of management of the enterprise. The rules of corporate governance are based on devotion and integrity and fair play. ... It provides the structure through which the objectives of the company are set, the means of attaining these and monitoring performance are determined (OECD, 1999, 1). This definition captures the entities of all who are involved as well as the working relationships among them with admire to the functions and responsibilities of corporate governance. The Need and Importance of Corporate Governance Quite simply, the stakeholders of a corporation-whether they be debtors, creditors, suppliers or distributors- as well as the general general would love to do business with a corporate entity or buy its products and services if they know that the management and the employees are a well reputed group and they can depose on the quality of the merchandise or service that is being provided to them. In other words the public perceives the corporate entity and its management and workers to be unplayful and honest hardworking citizens, working hard to contribute to the good of the economy and society at large. Of course they price their goods to include profit as well as to cover the costs and expenses of running a business. But the exposure of bad and fraudulent business practices as well as dubious business activities will certainly make people think double about the company and its bonafides- which have now fallen into disrepute It can be an audit team up or the actions of a concerned whistleblower that exposes these activities2 (Wearing, 2005, 27). Once the beans have been spilled, the company usually comes under the investigating of the Securities and Exchange Commission and other Federal agencies such as FBI and law enforcement can also swallow involved. In the UK this would involve actions and investigations by the Home Department and the Metropolitan Police. Once the