Corporate Governance with relation to TESCO - Global perspective

Table of contents

Introduction3

Current Corporate Governance System4

The Importance of Corporate Governance in line with TESCO5

Regulatory Framework for Corporate Governance6

Board Composition6

Accountability and Audit6

Challenges in the Path of Improved Governance7

Corporate Governance Reforms7

Globalization8

Disclosure of Confidential Information8

Misinterpretation of Financial Objectives8

Manipulation in the Accounting Numbers9

Social Economy Organizations9

Future Direction of Corporate Governance10

International Coordination10

Tesco's Corporate Governance10

Global position of Tesco11

Tesco's Strategies in a Global Marketplace12

Tesco's Price Strategies12

Tesco's Branding and Reputation12

Differentiation Strategy13

Branding Strategy13

Conclusion14

References16

Previts, G. (2008), “Research in Accounting Regulation”, Jay Press, p. 24316

Corporate Governance with relation to TESCO - Global perspective

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 good governance or 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 (Bushee, B.J. 1998, p. 305-33).

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 (Garcia, B. 2008, p. 116-31).

Current Corporate Governance System

According to the 1992 report of the Cadbury Committee on the financial aspects of corporate governance, corporate governance is a system in which companies are directed and controlled system. Government leaders are responsible for the administration and the role of government which is appointed by the board of directors and auditors, and ensure that an appropriate governance structure is feasible. The tasks are set by the company's strategic objectives; provide leadership for implementing and administering the affairs and report to shareholders for their shares which are the laws, regulations, and the meeting of shareholders.

The global expansion of Tesco along with ...