Worldwide Governance Indicators

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,…

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…

It is well known that corporate governance has been defined as “the system by which companies are directed and controlled. Boards of directors are responsible for the governance of their companies, including setting the company’s strategic aims, providing the leadership to put them into effect, supervising the management of the business and reporting to shareholders on their stewardship.” (Financial Reporting Council, UK Corporate Governance Code) Leadership and Board Effectiveness According…

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…

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…

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,…

Is “societas Europaea” a successful organizational model? What might be its future developments, also in the light of EU members states corporate Laws? 1. Background and Introduction of the “societas Europaea” Societas Europaea, European Company, from Latim is an organizational model, created by the European Union to harmonize corporate law within the European Market, on purpose of establishing a unique international statute, instead national laws from the states members of the EU. The…

Corporate governance is the way a corporation polices itself. It is the one of method governing the company such as a sovereign state, instating its own customs and laws to its employees from highest to lowest level. The corporate governance is to increases the accountability of the company and to avoid bad things happen. Well executed corporate governance should similar to a police departments internal. The company also hold meetings with internal members, such as shareholders and debt holders,…

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…