Essay about Corporate Governance Is The Way A Corporation Polices Itself

903 Words Feb 9th, 2016 4 Pages
In the light of the growing number of scams, accounting scandals, massaging of books, misuse and misappropriation of public money, the importance of Corporate Governance can’t be overstressed. Formation and proper functioning of Corporate Governance body abiding by international rules and regulations has become of quintessential importance today as survival and success in global market can be ensured only via foreign investment, foreign customers: simply in a word by going global. Image 1: Reference Bullet no. 17
Corporate Governance is the way a corporation polices itself. It intends to increase the accountability, transparency and efficiency of the management and advocates adoption of consumer and environment friendly business practices. It encompasses the board of directors and various stakeholders namely Employees, Investors, Customers, Suppliers, Creditors and its goals broadly include (1) Keeping the interest of stakeholders in mind, (2) Treating Shareholders equally (3) Ensuring Transparency & Ethical Behaviours (4) Lowering Risk & (5) Safeguarding the public image of the company. We begin by discussing a few infamous events that eventually led to Corporate Governance taking the centre stage and thereby forever altering the dynamics in which businesses work.
The Enron Corporate Fraud
Enron Corporation was an Energy, Commodity and Service Company based in Houston, Texas, USA. In the year 2000, Enron employed 61,000, operated in over 40 countries, and reported…

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