Research Articles Base: Corporate Governance Papers

A Sample Paper on the Characteristics of Good Corporate Governance

Characteristics of Good Corporate Governance Corporate governance is the process in which culture, customs, policies, laws are directed and administered or controlled in order to     have an orderly and effective decision making process, as well as efficient implementation of the decision into proper action or practice.  In corporate governance mainly involves the internal relationships among the stakeholders who are mainly involved in the decision makings, along with the board of directors, executives, high ranking officials of the company; and most especially the ordinary employees in the   corporation.      In the contemporary corporate governance, aside from the internal stakeholders, there are other external factors which are also given serious consideration in the decision-making and implementation of the rules and policies of the organization; and they are the trade creditors, suppliers, customers as well as the communities, and the environment at large.  In this connection, there are many challenges that different companies hurdle as their business grow and develop.  Relatively these challenges are being resolved through massive demands of product innovation,   market shares and more than anything else is through customer satisfaction.  Based on the various studies, a life cycle of any business largely depends on the compliance of the organization to the main characteristics of good corporate governance.  A well developed corporation   has a   longer span of  existing in the  industry   compared to other  competitors who do not  acquire the  same characteristics.  (http://en.wikipedia.org/wiki/Corporate_governance)   Correspondingly, there are seven characteristics which corporate governance must have in order to succeed in the corporate world.  First, the corporation   ought to have discipline among its company’s senior management in adhering to the proper behavior that is generally recognized and accepted in the business world.  Along with this trait, the company should be aware also about the   strong commitment of each individual in the organization towards achieving principles of good corporate governance at the management level in the organization.  Second is the company should have transparency, which only shows from the outside how the company performs; as well as it also conveys strong reputation and analysis about its employees’ actions towards the economic growth of the company.   To measure a well-governed corporation is through making information     available   in an honest and precise manner for auditing, as well as general reports, and press releases.   A good governed corporation reflects what the investors and the employees do for the benefit of the company and its employees in particular.  If other people see that the employees of one company live a satisfactory and stable life in and outside the company.  It only shows that the company   and the employees enable to improve the condition of the business; as well as they able to make the organization profitable for the benefits of all the people who wok for the best of the company.  Third, the   company should be independent with its operational and management mechanisms in controlling and running the organization as well as the employees.    These management mechanisms must not be influenced by both internal and external factors such as the strong dominance of chief executive who has a largest share owned.  The composition of the board, the appointments to committees of the board, as well as the auditors should not mingle with the daily decision making in the management level to avoid arising of conflict of interests among the involved parties in the business.  Unless, there is a real need for their    opinion,   suggestion or approval.  Fourth, there must be accountability in the corporation, whatever decisions or actions by the board and the committee should take place, the concern individuals or group of individuals in a company should be accountable or responsible for their decisions and implementations.     In the same manner, rules and mechanisms should be followed   to allow accountability in the process.  Fifth, there must be fairness in the corporate system,   the rights of the various groups of employees in the organization must be respected and acknowledged.  The minority’s well being should be given equal consideration like those of the dominant shareholders of the company.  Sixth, a good governance company should know or aware about its social responsibility to the society at large.  The company should recognize the moral values and ethical standards that a good corporate citizen should act or practice in the working place without discrimination among its employees; as well as no form of exploitation.  Seventh,   there must be a high sense of responsibility with regard to protecting the human rights issues as well as protecting the environment at large.   Subsequently, if all companies   are  managing their organizations  with all  these 7  characteristics,  rest assured that   all companies in the  across the countries would   gain economic benefits and profits, as well as many businesses would be more productive and even  lifts up the  existing reputation of the corporation.  (http://www.swview.org/blog/seven-characteristics-corporate-governance)   References:  (http://en.wikipedia.org/wiki/Corporate_governance) (http://www.swview.org/blog/seven-characteristics-corporate-governance)     Credit:ivythesis.typepad.com

A Sample Paper on the Characteristics of Good Corporate Governance

Characteristics of Good Corporate Governance Corporate governance is the process in which culture, customs, policies, laws are directed ...

Consider the problems of agency relationship/conflict and executive remuneration in the context of competing company objectives. Discuss how the principles of agency relationship and corporate governance were compromised during the lead-up to the recent

EMPLOYEES PROBLEM WITH EMPLOYMENT AGENCY         Employment agency is best described as an intermediate of employees to meet their prospective employers they massively allow applicant to come into their office to look for employment and they welcome companies and individual if they have a need for workers, laborers and employees. They are separate private business than the company they usually represent and it is a usual practice in most countries around the world it can also be a publicly funded organization for the purpose of mass hiring and recruitment. Employment agencies can deploy their people on local communities and they can also deploy their recruits abroad, again this process can be a common practice around the world since country’s may have a need to recruit people from another country or they may have local laborers who wants to work abroad.            Local employment agencies may give applicants an immediate employment but they are not allowed to choose a company but only to companies they represent and what available positions they are offering is the only choice or you may wait for a while to seek another job opening. If they have chosen your company it doesn’t mean that you are their employee but a representative of the agency who hired you. This means that you are in control of two companies which is the agency and the immediate employer, you will need to follow strictly both companies since they both have the rights and control of your employment. The next problem you may encounter would be the salary and benefits the immediate company will be the one to give the salary to the agency and the agency will be the one to give your salary and again this is the usual practice of most agencies.       The agency is an intermediary or like a salesman so they have a percentage on your monthly salary and it is in their control of how much they will give or it may be depending on your local minimum salary as provided by the government depending on your condition, qualification and performance. Some agencies may not be able to offer fringe benefits including health and security benefits and worst they may or may not even offer you a regular job but usually on a per contract basis. Usually this creates a problem between agencies, participating companies and employees if they stayed for a long period of time in employment without benefits. Companies who gain workers from agencies and do not recruit directly are perceived to have a low moral standard on their employees, through this process their corporate governance may be affected since they are preventing their workers the rights to receive a regular job and the benefits that they deserved, employers may be lucky if they have been absorbed directly to be hired by the company but usually this never happened. If workers are found ineffective the company can easily replace them without obligation or pay.       Employees who are accepted to work abroad may find it hard finding a placement fee for the first time, it may be higher than expected, sometimes the target company may offer a travel sponsorship or a fly now pay later plan a salary deduction process that the workers may waived or defer their placement until such time they have received their salary. Another disadvantage is that they may have to leave their loved ones for the sake of employment this is usually the cause of home sick and other psychological and emotional experiences that they may encounter. Employees are trained and prepared in such manner but the loneliest and solitude they may feel during employment maybe unbearable. There are also records of abuse especially among employees, laborers and workers from other countries like migrant women domestic helpers are being raped and abuse sexually some are bruised and badly beaten, some starved to death and unpaid while some are forced to prostitution.       There are thousands of abuses of their workers from the Philippines, Sri Lanka and Nepal who works from various countries in the Middle East neighboring workers from other countries are suffering from this kind of exploitation. Their respective government has given then some support of what they can do and the agency may not take consideration and responsibility on their sufferings. There are also workers who succeed in their agency who are deployed to worked abroad, they may found a good employer that will provide them good working conditions they have earned a bigger amount of income. Given a few more years these workers may prove to be financially successful. Credit:ivythesis.typepad.com

Consider the problems of agency relationship/conflict and executive remuneration in the context of competing company objectives. Discuss how the principles of agency relationship and corporate governance were compromised during the lead-up to the recent

EMPLOYEES PROBLEM WITH EMPLOYMENT AGENCY Employment agency is best described as an intermediate of employees to meet their pros...

THE ELEMENTS OF GOOD GOVERNANCE

THE ELEMENTS OF GOOD GOVERNANCE Generally speaking, the concept of governance has been in the    human civilization since the time that the people learned how to    live in one community or society through the process of making decisions and implementations of  certain   laws, rules and policies  in order to live orderly and harmoniously in one environment. However, at this time and age, governance can be meant several perspectives such as corporate governance, international governance, national governance and local governance.  Governance always involves the process of decision making and implementations of decisions and certain laws.  And, one of the active main players of governance is the government itself.   Next to government is the   officials in the government, in the rural areas, they are may be influential individuals in the community such as landlords, associations of peasant farmers, members of cooperatives, NGO members,  from research institutes or scholars, religious leaders,   from financial or political parties, as well as from military services.  On the other hand, at the national level, there are additional   individuals who   play vital roles in decision-making or in influencing the decision-making process; and they are   the media,   lobbyists, international donors, multi-national corporations and many others.  All these    individuals play vital roles in the civil society.  In the same manner, good governance must have eight significant characteristics in order for it to run effectively.  The government should be participatory, consensus oriented, accountable, transparent, responsive, effective and efficient; as well as equitable and inclusive; at the same time, it follows the rule of law.  More importantly, it   gives assurance to its people that its governance would be free from corruption practices.  In addition to that, the government should give priority to the views of minorities and listen to the voice of most vulnerable group of people   in the society when it comes to decision making. (http://www.adb.org/Documents/Policies/Governance/gov310.asp?p=policies) In this connection, there are specific elements of good governance.  First, the government must have participation from the citizenry; both men and women in the society should take part in various activities and organizations in the government sectors.  Relatively, it is very essential to give emphasis on the   democratic form of governance.  Equally important, good governance requires fair legal structure that must be applied objectively in order to give full protection to the human rights of the people, most especially those minorities.  And, to implement this effectively, there must be unbiased implementation of laws that require independent judiciary and an impartial, as well as corrupt-free police force.  Second, the government must have complete transparency with all its decision makings; as well as with its implementations of laws and policies that should be aligned to the    rules and regulations of good governance.  Additionally, all information must be easily accessible and understandable by the media as well as by the ordinary citizens.  By doing this, disseminating important information about the activities and real status of the government would be easily monitored and understood by the entire citizenry.  Third important element of good governance is the accountability of the government as well as its officials   for whatever public performances, behavior and any act while in their posts. The accountability of public institutions must be evaluated through their economic and financial performance.  The government officials’ accountability must be based on their effectiveness of formulating and implementing government resources efficiently.  While financial accountability  of them must be gauged by their  accounting records on their expenditure   management, as well as  through internal and external  auditing of the entire government expenditures.  (http://www.unescap.org/pdd/prs/ProjectActivities/Ongoing/gg/governance.asp) Subsequently, good governance must show predictability.  Predictability deals with the fair and consistent application of the laws and implementation of government policies in order to have a peaceful and well managed society.   The government must have the rule of law that aligns with the well defined rights and duties and the   mechanisms in order to implement government laws effectively and sufficiently.  It requires the states to set disputes among its people   through legal system for private individuals and enterprises.  Thus, a  good governance must also be consensus oriented;  such as  governance requires mediation of the various  interests of the people in the  society.  In the same fashion, government should require a broad and long-term   principles   in sustaining  and achieving human development; and in order to succeed in this area, the government  must have  complete understanding of the cultural, social,  as well as historical contexts of the entire citizenry.   Besides, a government should   ensure the entire citizenry that effectiveness and efficiency must be always present in every  decision it make, as well as in every implementation of  each law; by this way, there is an assurance that  the well being of the  people would be  in top priority as well as the protection of the environment.  (http://www.adb.org/Governance/gov_elements.asp)   References:  (http://www.adb.org/Documents/Policies/Governance/gov340.asp?p=policies) (http://www.unescap.org/pdd/prs/ProjectActivities/Ongoing/gg/governance.asp) (http://www.adb.org/Governance/gov_elements.asp)   Credit:ivythesis.typepad.com

THE ELEMENTS OF GOOD GOVERNANCE

THE ELEMENTS OF GOOD GOVERNANCE Generally speaking, the concept of governance has been in the human civilization since the time that...

1.Is Good Corporate Governance Really Important? a.Does good corporate governance help a company sell products? b. Is it true that companies prosper even without corporate governance standards?

GOOD CORPORATE GOVERNANCE             Corporate governance is mainly how an organization is managed, organized, and directed. It consists of an array of laws, policies, regulations, rules, and processes that affect governance, thus affecting the direction the corporation is aimed at. It also involves the interaction and association of its various stakeholders.             Stakeholders, in a modern business set up, are composed of two groups, the external stakeholders and the internal stakeholders. The external stakeholders are those not directly connected to an organization but has limited dealings and transactions with it. These are the tradesmen, suppliers, customers, shareholders, and the communities  in which the actions and movements of the corporation has an effect on. Internal stakeholders are those that are directly connected to an organization. These are the executives and management, the board of directors, and the employees. A particular aspect of corporate governance  is the scope and range of an individual’s accountability. Corporate governance influences the economic efficiency of the organization. An organization is said to be economically efficient if it can optimize the manufacture of its goods and/or services without the use of additional resources. Different countries have contributed to the development of the corporate governance codes and principles with the collaboration of various corporations, stock exchanges, investors, associations of managers and directors and the support of international bodies. Technically, an organization is not compelled to abide by the set codes and principles as these are not mandated but only recommended except for the listing requirements of stock exchange.  Consequently, if they are quoted in a particular Stock Exchange, they should provide documents disclosing whether they are following the recommended codes and guidelines. If not, written explanations on their deviating practices should be provided. This requirement compels most companies to comply instead to set corporate guidelines. The 2004 revised OECD Principles of Corporate Governance is the most used and referenced guideline. Its core values are fairness, responsibility, transparency, and accountability. This served as the basis of the United Nations’ “Guidance on Good Practices in Corporate Governance Disclosure” wherein five benchmarks were agreed upon. The categories are as follows: [i]auditing,  board and management structure and process, corporate responsibility and compliance, financial transparency and information disclosure, and ownership structure and exercise of control rights. A report, “Corporate Governance – the Foundation for Corporate Citizenship and Sustainable Business” was released in 2009 by the UN Global Compact and the International Finance Corporation, wherein it connected the social, environmental, and governance accountabilities of an organization to its performance and sustainability. The most vital and strategic position in corporate governance is that of the board of directors who owns the accountability of promoting strategy, developing policy directions, promoting and delegating executives, and guaranteeing responsibility of the organization to its shareholders and the authorities. Commonly adapted corporate governance principles are the rights and equal treatment of shareholders, the interests of stakeholders, functions and accountabilities of the board, veracity and ethical actions, and transparency and disclosure. Empirical evidence points out that practice of good corporate governance facilitates competitiveness and easier access to financial markets. Accordingly, they aid in the development of capital markets and pushes growth of economy. At present, more organizations worldwide put more importance on how their organizations are operated and how they react and respond to the organization’s demands. They also found out that the process of decision-making is much improved when practices for good governance are applied, consequently promoting and boosting operational efficiencies. It also minimizes the threat of fraud by employees particularly the officers because it improves the system of accountability. It also guarantees obedience to existing laws and regulations, thus acquiring and/or maintaining their reputation and standing in the market or industry. Well-governed organizations tend to stimulate and motivate employees to perform better thereby improving the company’s operational efficiency. It can also reduce cost of capital and increase the value or worth of its assets. Practicing good corporate governance is an ongoing process. It is strongly recommended to review and update processes regularly as the market has the tendency or is inclined towards giving more value to companies intent on making lasting commitments to practices of good governance.                           	   		 		 		 		[i] En.wikipedia.org Credit:ivythesis.typepad.com

1.Is Good Corporate Governance Really Important? a.Does good corporate governance help a company sell products? b. Is it true that companies prosper even without corporate governance standards?

GOOD CORPORATE GOVERNANCE Corporate governance is mainly how an organization is managed, organized, and directed. It consis...

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