Corporate Governance Explanation

Topics: Corporate governance, Management, Board of directors Pages: 2 (382 words) Published: March 12, 2013
Corporate governance is the way a corporation polices itself. In short, it is a method of governing the company like a sovereign state, instating its own customs, policies and laws to its employees from the highest to the lowest levels. Corporate governance is intended to increase the accountability of your company and to avoid massive disasters before they occur. Failed energy giant Enron, and its bankrupt employees and shareholders, is a prime argument for the importance of solid corporate governance. Well-executed corporate governance should be similar to a police department’s internal affairs unit, weeding out and eliminating problems with extreme prejudice. A company can also hold meetings with internal members, such as shareholders and debtholders – as well as suppliers, customers and community leaders, to address the request and needs of the affected parties.

Financial performance is related to shareholders, stakeholders and boards. Besides, financial ratios are useful tools to evaluate the financial condition of a firm, in this essay

Generally speaking, management group of Thomas Cook Group performed not very good, with revenue increasing from £8.9bn to £9.8bn, but both underlying profit from operations, underlying operating profit margin, dividend per share and underlying EPS decreased with large degree.

The company conducted a series of act to improve the stakeholder engagement in 2011, including a series of consultations to get information on the evaluation of service provided by the firm. It launched a sustainable strategy and plan, trying to decrease the damage on environment and wild animals due to tour activity. For the employees in Thomas Cook Group, they experience a tough period, since business transformation took place in 2011 and annual performance was not good. These efforts are not enough, since it neglected the demand of customers in the background of global recession, and a customer investigation is necessary to set up the next...
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