CORPORATE GOVERNANCE

Corporate Governance in Community Development Setting



Corporate Governance in Community Development Setting

Introduction

The main purpose of this paper is to make an analysis on the community organisation in their use of governance. The selected organisation is Youth Work Ireland. Youth Work has established in 1962, and the main function of the company is to inspire the young people. The company performs the functions of encouraging and supporting trained volunteers and staff. The company works for improving the standard of living of people in community based youth services.

The main purpose of designing this website is to encourage the young people and volunteers to perform the youth work. Because of the changes in Ireland, the young generation is suffering from many challenges. Therefore, Youth Work has the purpose to provide support to the young people.

Critical Analysis of community organisation in their use of governance

Implementing corporate governance is a very difficult task. Many companies in the different sectors face unusual problems in the implementation of corporate governance. Just like the other industries, the community organisations also face different challenges while implementing corporate governance. Before understanding the challenges and difficulties of corporate governance, it is very necessary to have the understanding of the concept of corporate governance. When it comes to define the concept of corporate governance, there is no universally accepted definition of the said phenomenon. The definition of corporate governance varies from one country to another. This is primarily because each country is different from the other in terms of their culture, historical development as well legal system (Sanyal, 2001, p. 43). The definition of corporate governance has determined in terms of the ways in which a firm's finance suppliers make sure they would get a good Return on Investment (ROI).

This definition is deficient because it lays emphasis on financial supply but does not distinguish the relationship that exists between the firm and the legion of stakeholder, who have varying interests and they have to be taken care of. For this reason, corporate governance has also represented as a collective grouping of individuals, who have unified into a body with authority and power to control things, give directions, and rule and organization (Hoetker, 2005, p. 75).

Another definition suggests that corporate governance is a process by which direction has given to an organization, and the organization has controlled, and it is also held to account. This entails that corporate governance covers the accountability, leadership, authority, direction, stewardship and control exercised in the procedure of an organization's management (Chatterjee, 200l, p. 34). This definition seems more balanced because it distinguishes the requirement for checks and balances which have hired in the process of organizational management; therefore it can be taken as a more comprehensive definition of corporate governance. (Balabanis, 2008, p. 25)In essence, corporate governance provides an alternative approach to decision-making process, giving full scope for cooperation between stakeholder and the community organisations. Corporate governance is framed by laws and accounting rules ensuring the necessary transparency, corporate governance is theoretically a way to ensure the ...