CASES IN CORPORATE GOVERNANCE

Cases In Corporate Governance



Cases In Corporate Governance

Introduction

The marketing mechanism and the regulations in the company pertaining to the relationship between the management of a company, the stakeholders and the board of directors lead towards the formation of a corporate that is being governed in order to achieve its objectives and goals. Corporate governance is a culture within the organization backed by the laws and regulations that are maintained by the company in order to structure the system and management within the organization. The laws and system procedures and approaches in the organization are a way to organize the management functions and activities within the organization which results in the achievement of goals and objectives by the organization (Clarke T. & Marie dela Rama, 2008). The key players of corporate governance within an organization involve the stakeholders and the board of directors along with the executive level management. These players are interdependent upon each other in order to achieve a specific goal and objective of the organization.

The proper use of corporate governance provides the organization with the resilience. However, the misuse of the corporate governance and the issues pertaining to the management and corporate governance of the organization could lead to serious dilemmas for the organization. The resilient characteristics of the organizations requires the management of several factors in the environment including interdependencies of the authorities, management of security, identification of risk, situational awareness, leadership, risk assessment, information security management, crisis management, communication, crisis treatment, crisis management, risk avoidance, values, culture, risk transfer, emergency management, business continuity, risk management, disaster recovery and corporate governance (Davies, 2011). To align interests of shareholders and managers, there should be a close relation between executive remuneration and corporate performance. Although executive remuneration is a mechanism of corporate governance, it has now evolved into a corporate governance problem of its own. This paper discusses this statement supported by the case studies in the context of United States and United Kingdom regarding the issue of corporate governance and the dilemmas faced by the companies due to non resilience of management and the functions of corporate governance.

Corporate Governance

With the increase in the activities and scale of operations of the organizations, the increase in the importance of the entities associated with the organizations is determined. The business organizations tend to have a strong impact on the economies and the societies that surrounds them. This phenomenon is monitored by the concept of corporate governance which adheres the control and ownership of the organization.

The corporate governance can be considered as the important factor in the development of consistent policies within the organizations. The policies should be proactive in nature. The protection of assets by the organization leads to the investigative function of the organization. The overall responsibilities of the board of corporate governance involve the determination of the areas where there is a presence of loss and devising mechanism of control to eradicate such issues. The board of governance includes the recommendations to prevent the ...