Governance

2.1.3 Shareholder protection Shareholder protection is top on the list of corporate governance. However, emphasis placed on protecting shareholders may led to unethical practices if this is a difficult thing to accomplish. Thus, it causes a problem for effective corporate governance in future. This is because protecting shareholders goes in line with making high profits. Therefore, if the company is making losses, it may misrepresent financial figures in order to deceive shareholders that the…

states; “Integrity is what we expect of individuals and deliver as a company. We have set a high standard of corporate governance, civic responsibility and ethical behavior that is reflected in our Code of Conduct, Corporate Governance Guidelines, and other governance policies and processes. Acting with integrity is the right thing to do. It is our highest ambition. Good governance works to illuminate our path and guide our actions.” Sprint’s Code of Conduct – Leading with Integrity The…

In discussing leadership, it is important to note that not all leaders or managers are alike. Moreover, the environments in which these managers or leaders function play a significant role as to the impact of legal and policy issues. For example, I work for a global organization that operates in more than 160 countries and jurisdictions. The basic policy and legal issues that governed me as a manager domestically also govern managers that work overseas. However, those managers are required to be…

Description Agency Theory Agency theory is a form of corporate governance where the role of the board of directors is to act as an independent intermediary between two entities. The board of directors is basically the governing body that facilitates the interaction between the principles and the agents. The principles or shareholders, are the entities which bring the resources to the firm from investments. The agents on the other hand are the people who utilize the resources of the principles…

In addition to these economic policies challenging the democratic governance in El Salvador, violence and crime were defining the identity of this nation, and in response the government implemented an anti-gang strategy in 2003 known as the Iron Fist or Mano Dura (Hume 2007). The strategy urged for the immediate imprisonment of gang members whether they were intentionally involved in an act of violence or simply having gang-related tattoos. This led to contend that there were more violent crimes…

Shared Governance The increasingly dire scarcity of professional nurses is a threatening theme in healthcare. In retort to it, more and more establishments are turning to shared governance, a concept introduced into healthcare organizations in the 1970s (Section 1) as an evidence-based system to control the shortage’s harmful effects for example, adverse patient outcomes, high cost of agency staff, and nurses sign-on bonuses to mention a few. What is Shared Governance? In its plainest form,…

modern corporate governance is how to design compensation packages that give appropriate incentives to CEOs to maximise firm performance. To design an appropriate compensation package, the usual approach is to test the relationship between CEO compensation and firm performance, as well as other firm factors, such as characteristics of corporate governance and operations. Most past research is based on data from developed countries, such as…

Agency vs. Stewardship Theory within Corporate Governance Brittany M. George Columbia Southern University Abstract This paper compares the dissimilarities of agency theory and stewardship theory within corporate governance. It will explore the responsibilities of those within top management and the leaders of a company and address the Sarbanes-Oxley Act of 2002. Upon the establishment of a company, many founders develop a set of guidelines for a company to adhere to as a…

aspects of culture such as European, Asia Pacific, and Anglo American cultures. The corporate governance structures, active capital markets, and shareholder friendly laws with higher levels of disclosure are being regarded as the processes that can enable the global standards of accountability and transparency as per the culture of organisations. For instance, the Anglo American model of corporate governance is based mainly on different pre-requisites for successful operation such as free…

Despite their differences in purpose and productivity, companies run with a similar basic layout called corporate governance. Even within the company, interest can be categorized into two theories: agency theory and stewardship theory. Agency theory focuses on fixing the misalignment between shareholders and the board of directors in the running of the company. It states that agents will act with a more personalized selfish interest in mind rather than focusing on the interest of the whole,…