Corporate Governance And Strategic Planning Essay
BUS 690: Business Strategy
Dr. David Kalicharan
December 15, 2014
There is a relationship between corporate governance and strategic planning, as corporate governance deals with compliance and protects the organization from unethical practices. Corporate governance manages the strategic planning of organizations by giving the structure and framework to leadership in organizations to adhere to regulatory laws. Corporate governance allows for the strategic plan of organizations to make them clandestine in their financial operations by establishing rules to disclose their financial standing. By doing so, the leaders are able to plan the future of their firm or organization.
Corporate Governance and Strategic Planning
The ultimate goal of corporate governance is to protect the funds and make the management responsible for any kind of fraud in the organization. Before the principles of corporate governance, there were no established rules for ensuring the transparencies organizations. In order to monitor and protect people from fraud, the U.S. Congress established the Sarbanes Oxley Act (SOA), which will be discussed later. It is the board of directors within an organization that formulates the corporate governance policies for securing the interests of stakeholders of a business, and the board members are always responsible for the performance of the…