Analysis of Corporate Governance

Corporate governance is a set of actions used to handle the relationship between stakeholders by determining and controlling the strategic direction and performance of the organization. Corporate governance major concern is making sure that the strategic decisions are effective and that it paves the way towards strategic competitiveness. (Hitt, Ireland, Hoskisson, 2017, p. 310). In today’s corporation, the primary objective of corporate governance is to align top-level manager’s and stakeholders interest. That is why corporate governance is involved when there is a conflict of interest between with the owners, managers, and members of the board of directors (Hitt, Ireland, Hoskisson, 2017, p. 310-311).

RULE OF LAW: Corporate promoters owe a fiduciary duty to one another, the company, its

Managers and shareholders are the utmost contributors of these conflicts, hence affecting the entire structural organization of a company, its managerial system and eventually to the company's societal responsibility. A corporation is well organized with stipulated division of responsibilities among the arms of the organizational structure, shareholders, directors, managers and corporate officers. However, conflicts between managers in most firms and shareholders have brought about agency problems. Shares and their trade have seen many companies rise to big investments. Shareholders keep the companies running

The article is written to help readers gain a solid understanding the roles of corporate governance, both inside and outside the company. Its goal is simply to impart information, not make claims or arguments on its own. I will be judging it mainly on the sources gathered, numerous examples and explanations given and the overall effectiveness it possesses in effectively communicating its ideas.

The board of directors play a very integral role in fostering the long term success of the company as well as promoting the interest of the stakeholders (www.northropgrumman.com) . The board has developed principles of corporate governance which majorly reinforce the company’s values of teamwork and respect for diversity among others. The board reviews the principles annually to inform if any modification is to be made. Before the final decisions are made in the organization, negotiation process is followed where the stakeholders’ views and feedback are collected and evaluated. Such evaluation of feedback ensures development of policies which are in conformity with the needs and the interest of all the stakeholders increasing a sense of loyalty and accountability of each of the stakeholders to facilitate attainment of the objectives. Such views are evaluated and reviewed by the board annually before their

The relationship among the many stakeholders and the way an organization is directed and governed is therefore created. Stakeholders might include customers, employees, creditors, suppliers and distributors, the community and the owners at large. The principle stakeholders are the board of directors, managements and employees. The first model of government and non-profit implementation often involves three groups: - executive board, supervisory board, and advisory board whose are appointed by shareholders to run the organization except the last group are bought in as independent experts to assist the company. Hence, what are good practices of corporate governance? How to ensure the directors act in the interests of the public?

founder’s actions, the Board will be required to answer to its stakeholders. The fact that there

Usually in corporations there is a clear distinction between the people who take critical decision – Board of Directors – and the people who actually execute the decisions – management. In FBM, many managers were also part of the Board. This arises conflicts of interest. This should be avoided.

Corporate governance has to be used to reposition the operations of PBC, analysis of both the micro and macro environmental points of view of the organization - where demographic, socio-cultural, political/legal, technological and global considerations of the organization in question. It also dwells on strength,

In fact, neither Rich nor Keeling paid attention to this control and coordination process. This negligence has led to poor corporate governance structure, causing problems failed to be detected by the board of directors. And instead, made the problems became worse. Pass (2004) explained corporate governance is concerned with the duties and responsibilities of a company’s board of directors in managing the company and their relationship with the shareholders of the company and other stakeholder group. While corporate governance plays a crucial role for company sustainability, Rich and Keeling were not involving the shareholders directly to the operation of the company in a timely basis. Needless to talk about the involvement of the shareholders, even Rich and Keeling as the founder were not irresponsible enough to manage planning for new product, forecasting staffing needs and training, advertising, and the availability of products. All those important processes were ignored and caused the frustration of the customers. This was directly impact to the call center staffs who were pressurized by the complaints and anger of customers. As a result, the turnover in call center increased to over 100% per year.

Key Term Stakeholdres This essay is divided into three parts. Part one identifies the key term stakeholders and display different types of it. Following that, the reasons why stakeholders always have interest in business' financial statement will be carried out. In the second part, it will give several definitions about corporate governance, and then gives some example of the conflicts between shareholders.

• Governance and control almost solely in the hands of three top management executives which might lead to possible strategic risk taking

This essay deals with the issues in corporate governance is a requirement for boards to consist of a majority of independent directors. Analysing the above mentioned statement the terms of the statements should be elaborated in detail for better understanding of the statement. This statement arise certain questions when an individual tries to understand it in depth. For example, what is corporate governance? What is the role of the board in legal context with regards to the above statement? What does the term independent director’ mean?

All that said, overall, including stakeholder governance as one of the pillars of good corporate governance framework can result in a more comprehensive understanding of corporate risk and opportunity, drive learning, innovation and performance while contributing to a strong reputation and prosperity over time. In fact, it is said that stakeholder governance has the potential to turn ‘distrustful opponents into critical friends ’.

Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals. Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the