CORPORATE GOVERNANCE

Corporate Governance at Microsoft

Corporate Governance at Microsoft

Introduction

The global financial crisis has shaken the economies of all parts of the world. The international financial collapse started in the mid of 2007 and proceeded until 2008. The stock markets have fallen immediately in different parts of the world. Not only this, the survival of financial institutions was in danger. The uncertainty and risks in the business transactions exceeded beyond imagination, and one after another, many businesses failed. Therefore, the governments of all nations had huge pressures to come up with a strategy to reduce the hazardous impact of the financial crises. One of the initiatives in this regard is an improved system and policies of corporate governance.

The code of corporate governance should not be seen simply as a regulatory process that is intended to interfere with or regulate processes, but rather as the firm intention to demonstrate to stakeholders and investors that companies are transparent, effective, efficient and above all with a high sense of commitment to be better every day. Good corporate governance should not be considered as an issue than is fashionable, but as the real solution to the crisis of confidence and lack of credibility is perceived around the public sector undertakings and private, which reflect the results of their management operations and financial statements and questionable.

The Code of good corporate governance is based on logical principles and widely known in the financial field, such as equity, justice, honesty, and solidarity, both with interest groups to the same society in general that cannot be affected by the unscrupulous actions of white collar criminals settled in the power of corporations and public sector enterprises and private. However, this system has numerous flaws and challenges that need to be resolved in order to make it more effective and useful (Colley 2003, pp.5).

Microsoft Corporation

Microsoft is an American multinational firm that develops, supports, licenses and manufactures a wide range of services and products. The head Quarter of the company is located in Redmond, Washington. The major product line of the company is computing technologies. The company was initiated in 1975. The mission of Microsoft is to enable people to fulfil their potential. The company plans to achieve its mission by inventing technologies which transform the way people communicate, play and work. The scope of the company is global. The major products of Microsoft include operating systems for intelligent devices, phones, servers and personal computers. Other products include server applications, productivity applications, online advertising, video games and software development tools. The company also manufactures and sells hardware such as Xbox 360 entertainment console and its accessories.

The company also provides product and solution support along with consulting. Other areas include cloud-based solutions, which provide revenue through online advertising model. There are five business segments including Entertainment and Devices Division, Microsoft Business Division, Online Services Division, Server and Tools, Online Services Division and the main segment Windows & Windows Live Division. The company believes in transparent and effective governance as a ...