Corporate Governance Assignment

Topics: Corporate governance, Management, Board of directors Pages: 4 (1031 words) Published: March 5, 2014
Define Corporate Governance
The extent to which businesses are socially responsible for meeting legal, ethical and economic responsibilities placed on them by shareholders. The aim is for businesses to create higher standards of living and quality of life in the communities in which they operate, while still preserving profitability for stakeholders. Corporate Governance Principles

Contemporary discussions of corporate governance tend to refer to principles raised in three documents released since 1990: The Cadbury Report (UK, 1992), the Principles of Corporate Governance (OECD, 1998 and 2004), the Sarbanes-Oxley Act of 2002 (US, 2002). The Cadbury and OECD reports present general principles around which businesses are expected to operate to assure proper governance. The Sarbanes-Oxley Act, informally referred to as Sarbox or Sox, is an attempt by the federal government in the United States to legislate several of the principles recommended in the Cadbury and OECD reports. Rights and equitable treatment of shareholders:[15][16][17] Organizations should respect the rights of shareholders and help shareholders to exercise those rights. They can help shareholders exercise their rights by openly and effectively communicating information and by encouraging shareholders to participate in general meetings. Interests of other stakeholders:[18] Organizations should recognize that they have legal, contractual, social, and market driven obligations to non-shareholder stakeholders, including employees, investors, creditors, suppliers, local communities, customers, and policy makers. Role and responsibilities of the board:[19][20] The board needs sufficient relevant skills and understanding to review and challenge management performance. It also needs adequate size and appropriate levels of independence and commitment. Integrity and ethical behavior:[21][22] Integrity should be a fundamental requirement in choosing corporate officers and board members. Organizations should...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Corporate Governance in the Hershey Company Essay
  • Hilton hotels Corporate Governance Essay
  • corporate governance Essay
  • corporate governance Research Paper
  • Corporate Governance Essay
  • Corporate Governance Essay
  • The Corporate Governance Essay
  • Corporate Governance Essay

Become a StudyMode Member

Sign Up - It's Free
Fate/kaleid liner Prisma☆Illya | ComingSoon | Family Guy S14E20 720p HDTV x264-AVS[rartv]