CORPORATE GOVERNANCE

Corporate Governance

Corporate Governance

Corporate Governance

It is well documented and widely admitted fact that transnational corporations and big business in general have extended their authority greatly in the last decade. In absolute size of economic activity, the giant corporations now compete all but the largest countries. Comparing corporate turnover to national GNP, fifty-one of the world's top 100 economies are corporations.

Complicating any endeavor to resist corporate power is the prevalent support for the status quo among governments. There are few governments that deviate from receiving a basic dynamic of competition to pull in investment to formulate jobs and wealth. The drift toward privatization is virtually worldwide. And political control by corporations on governments is also everywhere recognized. USA has recognized corporate-led globalization and corporate power in general, as one of the main field of operations in their movement opposing extreme corporate power. It is also a movement to disclose its corrupting effect on governments and intergovernmental bodies, in other words, a movement to reinforce democracy, locally, nationally and internationally. It is however hard to impart the message those corporations in general are too strong and that the entire sector needs reformation.

In a perfect world, we would like to elude all dilemmas. The fact, nevertheless, is that every economy is exposed to material shocks of one sort or another that affect economic disruption. It is also a fact that all economies at times become sufficiently out of balance that a dilemma is not only unavoidable, it is a necessary cathartic proceeding for patching up counterbalance within the economy. It is very enticing to sight the current system as crisis prone and to look to the distinguishing features of this period, such as globalization, deregulation, technology, and so on, as roots of the crisis. While there may be something to learn from changes in the environment, there are, I will argue, much more basic issues concerned, that are by no means only associated to these evolutionary repression's. Let's begin with the reality. Crises, both international and domestic, are by no way a new appearance. While the term 'corporate governance' has no single recognized meaning it is usually understood to incorporate how an organization is administered, its corporate and other structures, its culture, its policies and strategies, and the fashion in which it deals with its many stakeholders. “There is a changing perception about the value of corporate governance, but whether this is a milestone marking the start of a new road leading to improved corporate performance remains to be seen.” (acca.co.uk)

The process of globalization has been an unfocused and agitating process and has torn down the economy miserably. What the government need is better clarity of recent and accurate information to reduce risks and maximize opportunities. The exigency in corporate governance is grounded in business risk management and not entirely on financial risk management and corporations are too self-centered and rigid. They need to change more functionally open to develop their markets and secure the trust of all ...