Corporate Governance And The Sarbanes-Oxley Act

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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 …show more content…
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

A Primer On Corporate Governance By Cornelis A. De Kluyver

Introduction The main topic of this text book is to understand the main idea behind Corporate Governance and the way that it works. In A Primer on Corporate Governance by Cornelis A. De Kluyver this is explained in great detail. The text is positioned in a way that explains the perspective of the executive in order to help the reader develop and turn into a more efficient member and asset in his company by understanding that which is Corporate Governance. As De Kluyver states in the text that “Today, the debate is about making corporate power compatible with the needs of a democratic society”.…

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Corporate Citizenship Case Study

Ethical concern in business is becoming increasingly necessary today because of the increase in social and environmental challenges within which businesses operate. Ethical responsibilities have been identified as a component parts of firm‟s CSR with its economic and legal obligations because both are considered stimulants for corporate success. This means that ethical behavior is a prerequisite for strategic CSR. Zoe, (2004) also stressed that a good ethical behavior often serves as a mirror image of core corporate culture. Corporate ethics called for the attention of firms to ensure that their governance systems and business policies are underpinned by Ethics, Transparency and Accountability conceived legitimate and beneficial by its multiple stakeholders (Oyejide & Saka, 2012).…

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Advantages Of Corporate Social Responsibility

Corporate social responsibility encompasses not only what companies do with their profit but also how their profits are made. Corporate social responsibility addresses how companies manage their economic, social and environmental impact as well as their relationship in all fundamental aspect of influence at the workplace, the marketplace, the global supply chain and the society. The international organisation for standardisation (ISO) emphasise that the relationship to the environment and society in which business take place is the predominant factor in their ability to continue to function efficiently. Social responsibility means, individualand companies have a duty and must act in the best interest of the society and the environment. The ethical approach is the idea that business should use to balance profit-making activities with other activities that will benefit society through moral standard codes in the global supply…

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Triple Bottom Line Case Study

The integration and adaptation of sustainable procedures in any business requires a Triple Bottom Line approach. This approach can also be a micro solution to the tragedy of the commons problem. The concept of the triple bottom line implies that a company’s successfulness cannot be judged solely on financial performance, but on environmental and social impacts as well. As Hardin described, a shift in human values is needed in order for this approach to work, as well as a voluntary coercion collaborative effort from all businesses. A company’s responsibility must not only be to the shareholders, but also to the stakeholders.…

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Business Management: Ethical Behavior And Social Responsibilities

The utilization of the Contingency thinking theory helps the organization establish the most appropriate approach that fits demands the staff and stakeholders (both internal and external) based on the prevailing environmental situation (Schermerhorn 41). The Behaviural approach to management has made CSR Limited capable of managing its costs and budgets making more funds available for corporate social responsibility and sustainability…

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Impact Of Corporate Governance On Business Performance

Hence, it includes the relationship among the applied control system in the company and the roles of the board of directors manager, the owners whether they are shareholders or members and stakeholders. Therefore, it is necessary to understand and realise the importance of corporate governance and the extent of its effectiveness, as well as the realisation that full compliance with the laws does not necessarily mean that the company has adopted the application of sound corporate governance. It seems clear…

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Corporate Identity And Strategic Theory Of Corporate Reputationtion Theory

Corporate identity is how the organization presents itself to its various stakeholders by the means of differentiation (Markwick & Fill, 1997). According to Fombrun (2012) corporate identity and personality are related because in order to manage firm’s identity, it is crucial to have a clear appreciation or clear comprehension of an organization's personality (p 399). While, corporate image is the immediate mental picture that stakeholders or audiences have about the organization (Gotsi, & Wilson, 2001). Therefore, corporate reputation is the crux of the organization as it is the collective of all stakeholder perceptions. 6.0 Company behaviour and activities Campbell Arnott’s is an environmental friendly company that has an environmental policy in place, which reflects its commitment to conduct business in a manner that respects, protects, and preserve the environment.…

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The Transformation Of The Neoclassical Model To Flatter Management

The change in the culture and mindset of employees, as well as the commitment of the leadership and management are some of the internal factors which drive the transformation of the neoclassical model evident within post bureaucracy (Stubbs & Cocklin, 2008). It is through this transformation which allows organizations to be sustainable, by prioritizing the management of social and environmental issues within a business. The significance of the role of managers and their prioritization of decisions are emphasized through the ideas of corporate social responsibility, as being the greater intentions of business’ in creating practices and policies that go greater beyond the idea of just generating profit (Wray-Bliss 2007). The role of managers is further supported by the evolution of management structures from a bureaucratic hierarchical structure to a flatter management alternative, more often portrayed as a clan or adhocracy culture (Schein 1990). This change of managerial characteristics include a subtle form of communication, domination and control (Simpson 2016) assisting in the transformation of the neo-classical model to the SBM, as managers act on the same level with its employees.…

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ADI Case Study

What changes? Why? The corporate scorecard control system of ADI analyzes the performance of the company on Financial, New products and QIP measures by comparing objective value with the measured result. A Balanced scorecard approach must be undertaken by ADI by developing and maintaining it, the balanced scorecard is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results.…

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Influence Of Organisational Structure

Therefore, this method of organisational change influences the environment and restrictions for companies as they can use this strategic method to change definitions for better appearance of efficiency (Oliver, 1991, p. 174). Consequently, this is where vocabulary has an influence on the perception of rationalised myths as descriptors of roles and activities that perpetuate the continuation of conformity in organisational structures (Meyer & Rowan, 1977, p.…

Words: 1273 - Pages: 6

Corporate Governance And The Sarbanes-Oxley Act

Related Documents

A Primer On Corporate Governance By Cornelis A. De Kluyver

Corporate Citizenship Case Study

Advantages Of Corporate Social Responsibility

Triple Bottom Line Case Study

Business Management: Ethical Behavior And Social Responsibilities

Impact Of Corporate Governance On Business Performance

Corporate Identity And Strategic Theory Of Corporate Reputationtion Theory

The Transformation Of The Neoclassical Model To Flatter Management

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