Corporate governance, a concept which has succeeded in attracting a lot of public interest due to its perceived importance for the corporations' and society' economic health in general has been accorded several definitions. Shleifer and Vishny (737) defined corporate governance as a concept that deals with the manner in which suppliers of various financial services to corporations somehow assure themselves of getting some good return on their investment. OECD (1999) on the other hand defines corporate governance as a system by which various corporations are effectively directed as well as controlled. The structure of corporate governance specifies the form of distribution of rights as well as responsibilities among various different participants in a given corporation. The participants include the board of directors, managers, stakeholders as well as the shareholders. The corporate governance structure lays down the rules as well as procedures to be used for making various decisions on the relevant corporate affairs. The structures also provide a framework for setting the company's objectives and monitoring of corporate performance. Merchant & Van der Stede (577) noted that corporate governance should be spearheaded by the board of directors while being aided or monitored by controllers and auditors who are all concerned with the ethical issues related to management control (Merchant & Van der Stede 631) The...
The very first one is the need to ensure that the corporate governance framework that is put in place should help in the promotion of a transparent and yet efficient markets that are consistent with the rule of law while able to clearly articulate the various divisions of responsibilities that exists among various regulatory, supervisory and enforcement authorities (OECD 17).
Additionally, it has been observed that whenever companies implement strategies of CSR, they do this not out of individual choice and desire, but as a result of imposed legislations. "All of these decisions are made under the mandatory legal rules embodied in employment and labor law, workplace safety law, environmental law, consumer protection law, and pension law. Such rules, because they often apply to all businesses, are not susceptible to
Corporate Conduct Global corporations are often difficult to control because they operate in various countries throughout the world. As such actions that may be illegal in some countries are perfectly legal in others. Furthermore law enforcement officials and governments do not have the power to enforce laws that are outside of their jurisdictions. These issues call into question the effectiveness mechanisms that exist to control global corporate conduct. The purpose of
Global Corporate Strategy: Continental AG Compare and contrast the meaning of 'corporate entrepreneurship' and 'strategic leadership'. Corporate entrepreneurship is a term used to refer to the spirit of entrepreneurship of people within the company. In this instance, corporate entrepreneurship can be used to describe the attitude of many of the employees that worked for Continental. Corporate entrepreneurship is the "process by which individuals inside organizations pursue opportunities without regard to the resources
Extant literature has been dedicated to the concept of corporate ethics and governance. In regard to the Satyam scenario, Afsharipour (2010) discussed the expectations as well as challenges that face the Indian corporate governance landscape. The paper discussed corporate reforms that were put in place as a consequence of the Satyam fraud. The author recognizes the dire need for proper governance in the entire Indian corporate landscape as a consequence
Business-Level and Corporate-Level Strategies Every business in the modern world has to formulate and implement the best and most suitable strategy on how to conduct its operation. The choice of a business or corporate strategy significantly determines the success or failure of a business venture both in the short-run and in the long run. A suitable business or corporate strategy provides competitive advantage to a corporation, as well as the ability
Corporate Security Challenges Critically discuss the assertion by Briggs and Edwards (2006, p.21) that corporate security departments face the same challenges as any other business function: "they must keep pace with their company's changing business environment and ensure that how they work, what they do and how they behave reflect these realities The world has become a global village through globalization. Business undertakings have come to be more and more intricate. This
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