Corporate Governance And Corporate Management Essay

1083 Words Sep 7th, 2014 5 Pages
Corporate governance has been one of the principal factors responsible for the global economic downturn in the form of corporate collapses and frauds across the world. (Arens et al., 2011) states that the rising number of corporate failure has become a debatable issue and it advocates propose that it is extremely imperative to have good corporate governance in organisations. The adoption of poor corporate governance is clearly noticeable in most famous corporate collapse like: HIH Insurance, One Tel, Washington Mutual, Lehman Brothers, etc.
These collapses have thrown a light on the importance of implementation of proper corporate governance into practice. The companies failed because of the poor structure designed by the board, which allowed board of directors to exercise immense managerial power.

According to (BHP Billiton, 2012), It has been listed on Australia
Securities Exchange and it conforms to all corporate governance principals and its recommendations. It has been delivering all the detailed evidence required in their reports annually. BHP Billiton main purpose is to build and maximise long-term value of its shareholders through new invention, attainment, improvement and advertising of natural resources. Their board team is responsible for the reliable performance of its ongoing and future business scheme and assurance to provide clear and excellent governance. The company’s main goal is to implement superior quality governance that helps them in producing long…

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