Software Spying
In another telecommunications case, a company was found to have included spyware in a company-sponsored "software upgrade" to users' cell phones, that enabled the company to collect confidential information from users' phones without their consent (Khaleej Times, 2009). Not only is this practice clearly unethical, but it is also illegal despite a lack of stringency in the detection of such crimes and the prosecution of large-scale corporate offenders such as telecommunications companies. Again, greater transparency and internal control would have allowed this practice to be discovered much sooner, and the risk of discovery almost certainly would have prevented this action from ever occurring. Corporate governance works best when it is so strong it is only rarely and usually accidentally tested; when purposeful actions like this take place, a fundamental problem exists.
Embezzlement
Corporate governance does not just keep corporations as a whole on the right ethical and legal path, but also helps to ensure employees and managers are keeping company regulations and best interests in mind in all of their actions. With strict corporate governance policies in place, instances like the embezzlement of 27 million Dirham by an operations manager at a UAE telecommunications company wouldn't have happened (Kumar, 2008). Again, early detection and the threat of detection serving as prevention would have significantly mitigated if not entirely limited the risk exposure of the company in this case.
Corporate Governance in Governments
Just as corporate governance keeps individuals and corporations in check, the same principles and indeed some of the exact same mechanisms can be applied to governments in their interactions with the populous and with corporations. The UAE and other nations in the region have banned the use of voice-over-Internet-protocol (VOIP) programs and services, such as Skype, largely at the behest of the telecommunications companies that control a very restricted and expensive market and don't want to face the competition (Creffield, 2007). Rather than actually preventing the use of VOIP services, however, this ban merely led to people illegally using the cheaper (or free) competitors,...
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