Corporate Governance

Corporate Governance

Abstract

In this paper, we are trying to explore the concept of corporate governance in a holistic context. This research analyses the UK model of corporate governance and the role of codes of practice. Afterwards, the paper is exploring the importance of leadership and motivation in enhancing the groups and team performance in an organisation.

Table of Contents

Abstract2

Introduction4

UK model of corporate governance and the role of codes of practice5

Anglo-American model is applied in the United Kingdom6

There are the following advantages of Anglo-American model:7

The main disadvantages of the Anglo-American model are:7

Role of the board of the directors and how it is structured8

Identify the role of stakeholder, shareholders and institutional investors9

Stakeholder9

Shareholder9

Institutional investors10

Introduction to Tesco PLC11

The role of groups and teams in organisations11

How the group and team supports organisational performance12

Role of motivation in organisation12

Ways Tesco uses to motivate its employees13

Function of leadership in organisation14

Role of employee engagement in organisation15

Conclusion16

References17

Corporate Governance

Introduction

Corporate governance is the set of processes, regulations, laws and institutions affecting the way business is conducted, managed and controlled. Governance also includes the relationships among the many actors involved (the stakeholders) and the objectives that govern the company. The main players are the shareholders, the management and the Board of directors. Other stakeholders include employees, the suppliers, the customers, banks or other lenders, neighbourhoods, the environment and the wider community. The word governance is a new expression, which has a complex etymology.

The concept of corporate governance is the set of principles and rules governing the design, integration and operation of bodies' corporate governance, as are the three powers within a society: the Shareholders, Directors and Senior Management. Good corporate governance provides the incentives to protect the interests of the company and shareholders, to monitor the value creation and efficient use of resources to provide transparency of information. The concept appeared decades ago in most developed countries of Europe, due to the need of the minority shareholders of a company to know the state held by his investment, i.e. wanted to know what was being done with their money and what the future expectations. This led to the majority shareholders of a business and its directors, begin a process of openness of information, while professionalisation and transparency in the handling.

Worldwide, the stock market, pension funds, corporations mutual, insurance companies, venture capital companies and the like, are an important part of the financial system and information needs on their investment have been definitive in the incorporation companies with the best corporate practices call.

The Organisation for Economic Cooperation and Development (OECD) issued in May 1999 and revised in 2004 its "Principles of Corporate Governance" in which are the basic ideas that shape the concept that is used by member countries and some others in the process of becoming. The OECD principles provide that the QA framework must:

Protect the rights of shareholders.

Ensure equitable treatment for all shareholders, including minority and foreign.

All shareholders should have the opportunity to obtain effective reparation of damages for the violation of their ...