Corporate Governance And The Sarbanes-Oxley Act

1139 Words 5 Pages
Governance designates the quality, efficiency and good guidance for companies. Governing bodies come in many varieties, both formal and informal; whose sole responsibility authority is making the critical and binding decisions. Corporate governance is not just a set ideas there is a significant amount of legal requirements that companies are supposed to follow in order to demonstrate they have good corporate governance. Governance involves balancing the interests of the many stakeholders in the corporation including its shareholders, suppliers, financiers, management, the community and government.
Corporate governance also supplies the framework for acquiring another company from action plans and internal controls to their performance measurements and disclosures. This approach became a pressing issue following the Sarbanes-Oxley Act in 2002, which restored public confidence in corporations after fraud scandals such as Enron. Most companies strive daily to have a higher level of corporate governance. However, these days it is not enough for a corporation to merely be profitable in order to be
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Governance is not only a set of rules but is a process, which refers to the decision making process. This process can be found within all groups of the social, political, private or economic types. Governance also aims to facilitate participation of public policies with their implementation of multiple players who lack the same interests or the same forms of regulation. Democratic governance is considered to be the art of government by articulating the business from local to global scales. This system not only helps to reform states but also helps companies to reevaluate their management processes, allowing companies to define themselves a model for regulating that is best suited to their own challenges. This approach is used to rebuild the state and its relations with

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