The Journey and Trepidations of Corporate Governance

Corporate governance facilitates effective entrepreneur and prudent management that

delivers long term success to the company. The system by which companies are
controlled and directed. The board of directors are responsible for the Governance
of the companies, the role of the shareholder in governance is appointing directors
and auditors to satisfy there an appropriate governance structure is a place.
Essentially corporate governance involves balancing the interest of the Mini
stakeholders of a company such as the shareholders management customers supplier�s
financiers Government and the community since corporate governance also provides
the Framework for training the objectives of the company it encompasses nearly
every sphere of Management from internal controls to performance management and
corporate disclosures.
Bad corporate governance cast doubts on company�s reliability integrity and
obligation to its shareholders, it can also lead to the death of the company or
loss of credibility. As with the case of enron and Satyam we can see that not
having a proper governance structure and place led to the downfall of these
companies. Becomes code essential to have a good auditor for corporate governance
to ensure that proper procedures are followed. Essentially becomes the question of
who polices is the police. Companies do not select auditors or co-operate
sufficiently with them can publish noncompliant and spurious financial results.
Apart from an overall perspective we can also see that folder structure government
structures can make it difficult for shareholders to oust ineffective incumbents.
A good corporate governance creates a transparent set of rules and regulations, it
also provides a control which shareholders officers and directors can align
themselves with. For many stakeholders it is not only enough that a company is
profitable it also need to demonstrate a good corporate citizenship through
environmental awareness ethical behavior�s and sound corporate governance
practices.
The term corporate citizenship has become question on MS in the recent use it
basically involved social responsibilities of business and the extent to which they
meet the legal economic and ethical responsibilities are established by the
shareholders. Because this is primarily to produce higher standard of living and
quality of life for communities surrounding them while maintaining profitability
for stakeholders. Is a rise in the demand for socially responsible corporations and
is continuing to grow it encourages investors consumers and employees to use their
individual powers to negatively affect companies that do not share their values?
As an organization grows in its capacity and credibility in supporting community
activities, so does its corporate citizenship. A strong understanding of community
needs and the dedication to incorporate citizenship in the culture and structure of
the company leads to a higher sense of belonging in the society.
Determining what exactly is successful corporate governance becomes quite difficult
in the face of mixed systems of regulation, a mix of public and private policy
makers and lack of an accepted metric for determining what constitutes successful
corporate governance.
The biggest failures of corporate governance today is primarily its focus only on
the short-term performance it does not take into account do long-term ramifications
of its policies and actions. Managers are focused on meeting the quarterly earnings
under unrelenting pressure, the fear of falling stock prices and the pressure of
competition usually leads to more nefarious practices being followed in a company.
All this makes the need for corporate governance Paramount to the success of the
organisation.