corporate governance assignment essay

Free Corporate Governance Essay Examples & Topics

Corporate governance is a set of policies and rules used to direct and control a company’s operations. It is essential for managing a firm and balancing the interests of the stakeholders, shareholders, executive directors, suppliers, and customers. Accountability, transparency, fairness, and responsibility form the corporate governance framework.

Assigned a corporate governance essay? Our IvyPanda team is ready to help you with this task. But before all else, let’s learn its essential aspects.

There are a few key principles of corporate governance. Firstly , shareholders have control over the boards. Their voting rights directly depend on their economic interests.

Secondly , boards should keep in touch with the shareholders and meet their expectations. Thus, they should have strong leadership skills. In essence, they are responsible for enhancing the effectiveness and adopting new practices.

Finally , boards should develop a working management system. Its goal is to positively affect a company’s performance in the long run.

In this article, we have collected corporate governance essay questions and examples. They will assist you in preparing and writing your paper. Additionally, you will find free samples written by fellow students.

Great Corporate Governance Essay Questions

Checking corporate governance assignment topics can be useful for many reasons:

• You can look through multiple ideas at the same time. Thus, you may understand what it would be interesting to write about.
• Different ideas can show you how to formulate your own topic.
• Lastly, you can find an idea for your work.

We have put together a small list for you to check. Find more ideas by trying our title generator . It will create new topics for your paper automatically.

Here are some corporate governance topics:

• What is corporate governance? How do you implement it correctly?
• The role of the audit committee in developing an effective financial management strategy.
• What are some examples of corporate governance approaches in American firms?
• Should employees who have children with disabilities have extra social care benefits?
• Accounting fraud and possible ways to deter it.
• The role of business ethics in striving for equality and eliminating discrimination at the workplace.
• Top 5 the most effective governance models.
• Governance research in developing an efficient long-term managing strategy.
• What are the similarities and differences in corporate governance principles in public and private firms?
• Advantages and disadvantages of cultural diversity at the workplace.
• How can corporate governance help prevent the firm’s economic crisis?
• Structure hierarchy vs. flat management model. What is more appropriate for governing large corporations?
• Agency relationship between two parties. Possible problems that may occur in this kind of cooperation.
• The effect of corporate social responsibility on a firm’s image and reputation.
• How to recover from failures in project management and take the maximum benefit from them.
• The importance of having a clear mission statement for the company’s reputation in the market.
• How can a company reach sustainability in terms of production and distribution of the products?

5 Corporate Governance Examples

In your essay, you can consider examples of corporate governance for different reasons. They can be used as a subject of discussion, evaluation, or as supporting evidence. That’s why we have provided some good examples in this section:

• Integrated business management system (IBMS)

In most organizations, each department has its own key performance indicators. Yet, it is essential to see a holistic picture of the company’s performance. One of the solutions is to imply IBMS and combine all management systems. IMBS ensures transparency, cross-departmental collaboration, traceability, and visibility.

• Regular internal audits

The role of routine internal audits cannot be underestimated. They allow identifying current problems and vulnerabilities in the company. Moreover, audits help evaluate the corporate environment and make some adjustments if needed.

• Training management system

Investments in employees’ training are always a great idea! The knowledge and skills that the workers acquire during the courses will bring valuable input to a company. Thus, simple training can boost the company’s performance to a great extent.

• Risk management

Identifying, accessing, and managing the risk are the key elements of successful corporate governance. It is essential for the company’s managers to acknowledge the possible threats. Plus, they should have a clear plan of how to overcome these obstacles.

Successful management relies on valid data. Therefore, it is essential to report true key performance indicators. It will help evaluate the firm’s achievements and adjust the strategy if needed.

Thank you for reading! Below, see corporate governance, diversity, and inclusion essay examples. They will help you better understand the subject and how to write about it. You can shorten each paper with our summarizer to read them faster.

201 Best Essay Examples on Corporate Governance

Environmental, social and corporate governance.

• Words: 1468

Etisalat Company: Organization Theory and Design

• Words: 1145

What is corporate governance?

• Words: 1152

British Petroleum Company’s Corporate Governance Failure

Bureaucracy in an organization, corporate governance and corporate social responsibility.

• Words: 2731

The Roles of an Internal Auditor in Corporate Governance

Inclusion and diversity, the anglo- american model and the european model of corporate governance.

• Words: 2203

Corporate Governance in Satyam Computer Services LTD

• Words: 3197

Organizational Structure at Starbucks

• Words: 1057

Corporate Governance at SingPost

• Words: 2601

Delta Airlines: Corporate Governance and Leadership Issues

• Words: 2618

Effective Project Governance in Organizations

• Words: 2999

US Companies’ CEOs: Severance Packages, Failures and Results

• Words: 1388

Corporate Governance and Risk Management

• Words: 3825

HP Acquisition of Autonomy in 2011

The arguments for and against mandatory system of corporate governance.

• Words: 1365

Corporate Governance in the Documentary “Inside Job”

• Words: 1570

Matrix Organizational Structure

• Words: 1403

Importance of Agency Relationships

Board of directors competence.

• Words: 1188

Starbucks: Corporate Finance Analysis

• Words: 3753

Cross-Cultural Management and HRM in Walmart

• Words: 3606

Stakeholder and Shareholder Capitalism Models

• Words: 1245

Corporate Governance: Models and Factors

Tanzanian banking sector: corporate governance, corporate governance: the main theories, sarbanes-oxley act, synergy, and mncs in developing countries, walmart inc.’s corporate governance regulation through nonprosecution.

• Words: 2571

Corporate Governance and Dispute Settlement

Et-moone and business-to-business relationships, corporate governance and voluntary risk disclosure, corporate governance failures discussion, corporate governance and its role in business, acwa power governance changes, corporate internal governance structure & innovation behavior.

• Words: 3932

Corporate Governance at Wirecard

Companies’ primary responsibilities and strategies, board of directors importance for company, diversicare healthcare services inc.’s obstacles, ukraine’s code of corporate governance, corporate governance in emerging economies, deloitte touche tohmatsu limited firm’s governance model.

• Words: 1003

Executive Compensation and Board of Directors’ Decisions

• Words: 1104

Agency Theory: The “Combined Code” and the SOX

• Words: 1426

Singapore Post Limited’s Corporate Governance

• Words: 2503

HRM Role and Fixing Corporate Governance Failures

• Words: 4445

IT Governance at Richter Company

• Words: 2334

Institutional Governance Mechanisms and Expectation Gap

• Words: 1124

Business Performance and CSR of FAI

• Words: 3000

Governance Failures in Australian Banking Sector

• Words: 1208

Activism in Visual and Media Culture: Characteristics of Corporations

• Words: 2022

The Impact of Corporate Governance and Ownership Structure

• Words: 2205

Evaluation of Corporate Performance

• Words: 2211

CQUniversity: Corporate Governance and Ethics

• Words: 1984

CFO Report: Chesapeake Energy Corporation

• Words: 4434

Directors of The Procter & Gamble Company

Cases of successful and of failing corporate governance, cross-sectional differences in corporate capital structures.

• Words: 2291

Ways of Improving Corporate Governance in the Post-Enron Era

• Words: 4233

The Kraft – Cadbury Takeover and the Glencore-Xstrata Merger

• Words: 1999

Recommendations for the Corporate Governance Best Practice

• Words: 1106

Regulations in Corporate Governance

• Words: 4142

Insurance Companies’ Profitability in Saudi Arabia

• Words: 1919

Corporate Governance: Problems of the Hewlett Packard

Deming: 14 points of transformation.

• Words: 1928

Chapters 1-2 of Corporate Governance by Kenneth

Proxy fight: genzyme, companies and corporation liquidation and bankruptcies: with a focus on saudi arabia.

• Words: 4329

Accountability and Performance Measurement of Corporate Governance in the Public Sector of Saudi Arabia

• Words: 1591

Internal Audit in Saudi Companies

• Words: 1183

Sarbanes-Oxley Act and Nonprofit Organizations

• Words: 1341

Corporate Governance and Disclosures on the Transition to International Financial Reporting Standards

Riordian manufacturing co.: corporate compliance plan.

• Words: 2818

Reputation of National Social Security Authority

• Words: 2125

Corporate Social Responsibility Activity

Corporate health policy overview, agency theory in corporate governance: criticism and real application.

• Words: 3867

On the Relevance of Bureaucracy

Director’s behaviour and company ceos trustworthiness perception, corporate governance in germany.

• Words: 1477

Corporate Governance and Its Reform in Hong Kong

• Words: 1377

How Corporate Leadership Controls Hotel Franchise

• Words: 3065

The Phenomena of Open Innovation

Changes in the company due to external and internal factors, ibm: issues in democratic principles & diversity in the workplace, merger and acquistion: terms definition, abu dhabi commercial bank: corporate governance principles.

• Words: 1255

Ganong Bros Critical Financial Time Analysis

• Words: 1409

Group Motivation Inventory

Stakeholder relationships, social responsibility, and corporate governance, corporate performance, governance, and business ethics, on the need to save general motors from bankruptcy, corporate governance: term definition, environmental, social, and governance metrics in business.

• Words: 1460

COSO and COBIT Committees in a Field for Corporate Auditions

Governance, ethics and law.

• Words: 1162

The Concept of Corporate Governance

• Words: 1197

Business Roundtable on Corporate Governance in 1997 and 2019

• Words: 1663

Corporate Governance Issues in the Company

Corporate governance framework and financial performance, sarbanes-oxley evaluation and its implications, sarbanes-oxley act and us corporate governance, sarbanes-oxley act and corporate governance, etisalat: change as an innovation, corporate governance practice: nike in vietnam.

• Words: 11113

Corporate and Information Security Governance

Corporate governance concepts.

• Words: 1342

Corporate Governance Understanding

• Words: 1401

Assessing and Managing Sustainability

• Words: 2404

Corporate Government During the World Financial Crisis

• Words: 1550

Corporate Governance During the Global Financial Crisis

• Words: 1500

Corporate Governance: Enron and Parmalat Case

Corporation directors’ and shareholders’ duties, overcoming the five dysfunctions of a team.

• Words: 1404

Corporate Governance Impact on Firm Performance

• Words: 4406

Effects of Corporate Governance on Firm Performance

• Words: 8248

Corporate Governance Practices in Saudi Arabia

Corporate governance and risk management theories.

• Words: 2581

Corporate Governance Research Paper Topics

This guide provides a comprehensive list of corporate governance research paper topics divided into 10 categories, expert advice on choosing a relevant and feasible topic, and tips on how to write a successful corporate governance research paper. Corporate governance is a critical aspect of modern business that has a significant impact on the success of organizations. As a result, students who study corporate governance are often assigned to write research papers that explore various aspects of the topic. In addition, iResearchNet offers custom writing services that provide expert degree-holding writers, customized solutions, and timely delivery. By using this guide and iResearchNet’s writing services, students can ensure that their corporate governance research papers meet the highest academic standards.

Corporate Governance Research

Corporate governance is a critical aspect of modern business that encompasses the practices, processes, and systems by which organizations are directed, controlled, and managed. As a result, students who study corporate governance are often assigned to write research papers that explore various aspects of the topic, ranging from board structures and executive compensation to shareholder activism and stakeholder engagement.

Academic Writing, Editing, Proofreading, And Problem Solving Services

Get 10% off with 24start discount code.

In this guide, we provide a comprehensive list of corporate governance research paper topics divided into 10 categories, expert advice on how to choose a relevant and feasible topic, and tips on how to write a successful corporate governance research paper. In addition, we offer custom writing services through iResearchNet that provide expert degree-holding writers, customized solutions, and timely delivery.

By using this guide and iResearchNet’s writing services, students can ensure that their corporate governance research papers are well-researched, well-written, and meet the highest academic standards.

100 Corporate Governance Research Paper Topics

Corporate governance is a broad and complex topic that encompasses a wide range of issues and challenges facing modern organizations. To help students choose a relevant and feasible corporate governance research paper topic, we have divided our comprehensive list of topics into 10 categories, each with 10 topics.

Board of Directors

• Board independence and effectiveness
• Board diversity and gender equality
• CEO duality and separation of roles
• Board composition and characteristics
• Board oversight and accountability
• Board nominations and elections
• Board leadership and culture
• Board committees and responsibilities
• Board evaluation and performance
• Board compensation and incentives

Executive Compensation

• Executive pay and performance
• Executive pay and firm performance
• Pay-for-performance and pay-for-skill
• CEO pay ratios and pay equity
• Stock options and equity-based compensation
• Executive severance and golden parachutes
• Executive perquisites and benefits
• Executive retirement and pensions
• Say-on-pay and shareholder activism
• Institutional investors and executive pay

Shareholder Activism

• Shareholder rights and activism
• Shareholder proposals and proxy access
• Shareholder engagement and communication
• Shareholder activism and corporate social responsibility
• Institutional investors and shareholder activism
• Hedge funds and shareholder activism
• Shareholder activism and executive compensation
• Shareholder activism and board independence
• Shareholder activism and corporate governance reforms
• Shareholder activism and CEO turnover

Stakeholder Engagement

• Stakeholder identification and analysis
• Stakeholder mapping and prioritization
• Stakeholder communication and dialogue
• Stakeholder participation and empowerment
• Stakeholder consultation and feedback
• Stakeholder engagement and corporate social responsibility
• Stakeholder engagement and sustainability reporting
• Stakeholder engagement and risk management
• Stakeholder engagement and corporate reputation
• Stakeholder engagement and value creation

Corporate Culture and Ethics

• Corporate values and ethics
• Ethical leadership and decision-making
• Corporate social responsibility and sustainability
• Business ethics and compliance
• Corporate citizenship and philanthropy
• Corporate culture and values alignment
• Corporate culture and employee behavior
• Corporate culture and organizational performance
• Corporate culture and innovation
• Corporate culture and risk management

Board-Shareholder Relations

• Board-shareholder communication and engagement
• Board-shareholder conflict resolution
• Board-shareholder cooperation and collaboration
• Board-shareholder activism and response
• Board-shareholder rights and responsibilities
• Board-shareholder agreements and charters
• Board-shareholder engagement and corporate social responsibility
• Board-shareholder relations and institutional investors
• Board-shareholder relations and minority shareholders
• Board-shareholder relations and corporate governance reforms

Regulatory and Legal Environment

• Corporate governance regulations and compliance
• Corporate governance laws and policies
• Corporate governance codes and standards
• Corporate governance enforcement and penalties
• Corporate governance and public policy
• Corporate governance and the role of regulators
• Corporate governance and antitrust laws
• Corporate governance and securities laws
• Corporate governance and data privacy laws
• Corporate governance and intellectual property laws

Risk Management and Disclosure

• Enterprise risk management and oversight
• Risk management and strategic planning
• Risk management and financial reporting
• Risk management and sustainability reporting
• Risk management and cybersecurity
• Risk management and climate change
• Risk management and supply chain management
• Risk management and crisis management
• Risk management and stakeholder engagement
• Risk management and disclosure requirements

International Corporate Governance

• Cross-border mergers and acquisitions and corporate governance
• Corporate governance and foreign direct investment
• Corporate governance and multinational corporations
• Corporate governance and global supply chains
• Corporate governance and global financial markets
• Corporate governance and emerging markets
• Corporate governance and corruption
• Corporate governance and cultural diversity
• Corporate governance and the United Nations Sustainable Development Goals
• Corporate governance and global challenges

Corporate Governance Reform

• Corporate governance failures and scandals
• Corporate governance reforms and their impact
• Corporate governance and shareholder activism
• Corporate governance and executive compensation reform
• Corporate governance and board independence reform
• Corporate governance and stakeholder engagement reform
• Corporate governance and diversity and inclusion reform
• Corporate governance and sustainability reform
• Corporate governance and regulatory reform
• Corporate governance and future trends

By organizing the corporate governance research paper topics into categories, students can easily identify areas of interest and develop research questions that align with their academic goals and interests. The categories cover a wide range of issues and challenges facing modern organizations, from board structures and executive compensation to stakeholder engagement and international corporate governance.

Choosing a Topic in Corporate Governance

Choosing a relevant and feasible corporate governance research paper topic is critical for success in academia. The following are expert tips on how to choose a corporate governance research paper topic:

• Consider your interests : Choose a topic that you are interested in and passionate about. Your enthusiasm for the topic will help you stay motivated throughout the research and writing process.
• Identify a research gap : Choose a topic that fills a research gap or addresses a new research question. This will help you contribute new knowledge to the field and make a meaningful contribution to academic scholarship.
• Consult with your instructor : Discuss potential topics with your instructor and seek feedback on your ideas. Your instructor can help you refine your research question and suggest relevant literature and sources.
• Conduct a literature review : Conduct a literature review to identify gaps and areas of interest within the field. This will help you develop research questions and identify key concepts and themes.
• Consider feasibility : Choose a topic that is feasible given the time and resources available to you. Be realistic about your research scope and the data sources that are available to you.
• Stay current : Choose a topic that is current and relevant to the field. This will help you stay up-to-date on the latest trends and developments in corporate governance.
• Identify a manageable scope : Choose a topic that has a manageable scope. Narrow down your research question to a specific aspect of corporate governance that can be explored in-depth within the scope of a research paper.
• Brainstorm potential topics : Brainstorm a list of potential topics based on your interests, literature review, and discussions with your instructor. Evaluate each topic based on its relevance, feasibility, and potential impact.

By following these expert tips, students can choose a relevant and feasible corporate governance research paper topic that aligns with their academic interests and goals. In the next section, we provide tips on how to write a successful corporate governance research paper.

How to Write a Corporate Governance Research Paper

Writing a successful corporate governance research paper requires careful planning and attention to detail. The following are expert tips on how to write a corporate governance research paper:

• Develop a clear research question : Develop a clear and concise research question that addresses a gap or new research question within the field of corporate governance. The research question should be specific and focused to ensure a manageable scope for the research paper.
• Conduct a literature review : Conduct a comprehensive literature review to identify key concepts and themes within the field of corporate governance. This will help you develop a theoretical framework and provide a foundation for your research paper.
• Select appropriate research methods : Select appropriate research methods that align with your research question and objectives. This may include qualitative, quantitative, or mixed-methods research approaches.
• Collect and analyze data : Collect and analyze data using appropriate research methods. This may include conducting interviews, surveys, or analyzing financial data. Ensure that your data collection and analysis is rigorous and aligns with the research question and objectives.
• Develop a clear and structured outline : Develop a clear and structured outline for your research paper. This will help you organize your thoughts and ideas and ensure a logical flow of information.
• Write a clear and concise introduction : Write a clear and concise introduction that provides background information and context for the research question. The introduction should also clearly state the research question and objectives.
• Develop a comprehensive literature review : Develop a comprehensive literature review that provides a theoretical framework for the research question. The literature review should be organized thematically and include key concepts and themes within the field of corporate governance.
• Analyze and interpret findings : Analyze and interpret the findings of the research. Ensure that your analysis and interpretation aligns with the research question and objectives.
• Develop a clear and concise conclusion : Develop a clear and concise conclusion that summarizes the key findings of the research and provides implications for practice and future research.
• Ensure proper formatting and citation : Ensure that your research paper is properly formatted and cited. Follow the guidelines of the citation style required by your instructor, such as APA, MLA, or Chicago.

By following these expert tips, students can write a successful corporate governance research paper that contributes new knowledge to the field and makes a meaningful contribution to academic scholarship. In the next section, we provide information on how students can benefit from the iResearchNet writing services for corporate governance research papers.

iResearchNet Writing Services for Corporate Governance Research Papers

At iResearchNet, we understand the importance of producing high-quality corporate governance research papers that meet the academic standards of students. Our team of expert degree-holding writers can help students produce well-written and well-researched corporate governance research papers that meet the requirements of their instructors. Our writing services include the following features:

• Expert degree-holding writers : Our writers are experts in corporate governance with advanced degrees in the field. They have the knowledge and expertise to produce high-quality research papers that meet the academic standards of students.
• Custom written works : We provide custom written works that are tailored to the specific needs and requirements of each student. Our writers work closely with students to ensure that their research papers meet their expectations and academic standards.
• In-depth research : Our writers conduct in-depth research to ensure that the research papers are well-supported with relevant and reliable sources.
• Custom formatting : Our writers are well-versed in various citation styles, including APA, MLA, Chicago/Turabian, and Harvard. We ensure that the research papers are properly formatted and cited according to the required citation style.
• Top quality, customized solutions : We are committed to providing top-quality and customized solutions that meet the unique needs and requirements of each student.
• Flexible pricing : We offer flexible pricing options to ensure that our writing services are affordable for students.
• Short deadlines : We can accommodate short deadlines of up to 3 hours for urgent assignments.
• Timely delivery : We ensure timely delivery of research papers to ensure that students have enough time to review and submit their assignments.
• 24/7 support : We provide 24/7 support to answer any questions or concerns that students may have about their research papers.
• Absolute Privacy : We prioritize the privacy and confidentiality of our clients. We ensure that all client information is kept confidential and secure.
• Easy order tracking : We provide easy order tracking to enable students to track the progress of their research papers.
• Money-back guarantee : We offer a money-back guarantee to ensure that students are satisfied with the quality of their research papers.

By using iResearchNet writing services, students can benefit from the expertise of our writers and produce high-quality corporate governance research papers that meet the academic standards of their instructors.

Order Your Custom Research Paper Today!

Writing a successful corporate governance research paper requires careful planning and attention to detail. By choosing a relevant and feasible research paper topic, conducting a comprehensive literature review, and following the tips outlined in this article, students can produce high-quality research papers that make meaningful contributions to the field of corporate governance. Additionally, iResearchNet writing services offer students a valuable resource for producing high-quality research papers that meet the academic standards of their instructors. With expert degree-holding writers, customized solutions, and a range of support features, iResearchNet can help students achieve academic success and excel in their studies. Contact us today to learn more about our writing services and how we can assist you in your corporate governance research paper writing needs.

ORDER HIGH QUALITY CUSTOM PAPER

• Help & Terms of Use

Three essays on corporate governance

• Trang L N Nguyen
• School of Accounting and Finance - Business School

Student thesis : Doctoral Thesis › Doctor of Philosophy (PhD)

File : application/pdf, 805 KB

Type : Thesis

• Persistent link

• Search Search Please fill out this field.

What Is Corporate Governance?

• How It Works
• Board of Directors
• Assessing Corporate Governance

The Bottom Line

• Corporate Finance

Corporate Governance: Definition, Principles, Models, and Examples

Good corporate governance can benefit investors and other stakeholders, while bad governance can lead to scandal and ruin

James Chen, CMT is an expert trader, investment adviser, and global market strategist.

Amanda Bellucco-Chatham is an editor, writer, and fact-checker with years of experience researching personal finance topics. Specialties include general financial planning, career development, lending, retirement, tax preparation, and credit.

Investopedia / Jessica Olah

Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of a company's many stakeholders , which can include shareholders, senior management, customers, suppliers, lenders, the government, and the community. As such, corporate governance encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure .

Key Takeaways

• Corporate governance is the structure of rules, practices, and processes used to direct and manage a company.
• A company's board of directors is the primary force influencing corporate governance.
• Bad corporate governance can destroy a company's operations and ultimate profitability.

The basic principles of corporate governance are accountability, transparency, fairness, responsibility, and risk management.

Understanding Corporate Governance

Governance refers to the set of rules, controls, policies, and resolutions put in place to direct corporate behavior. A board of directors is pivotal in governance, while proxy advisors and shareholders are important stakeholders who can affect governance.

Communicating a company's corporate governance is a key component of community and  investor relations . For instance, Apple Inc.'s investor relations site profiles its corporate leadership (the executive team and board of directors) and provides information on its committee charters and governance documents, such as bylaws, stock ownership guidelines, and articles of incorporation .

Most successful companies strive to have exemplary corporate governance. For many shareholders, it is not enough for a company to be profitable; it also must demonstrate good corporate citizenship through environmental awareness, ethical behavior, and other sound corporate governance practices.

Benefits of Corporate Governance

• Good corporate governance creates transparent rules and controls, guides leadership, and aligns the interests of shareholders, directors, management, and employees.
• It helps build trust with investors, the community, and public officials.
• Corporate governance can give investors and stakeholders a clear idea of a company's direction and business integrity.
• It promotes long-term financial viability, opportunity, and returns.
• It can facilitate the raising of capital.
• Good corporate governance can translate to rising share prices.
• It can reduce the potential for financial loss, waste, risks, and corruption.
• It is a game plan for resilience and long-term success.

Corporate Governance and the Board of Directors

The board of directors is the primary direct stakeholder influencing corporate governance. Directors are elected by shareholders or appointed by other board members and charged with representing the interests of the company's shareholders.

The board is tasked with making important decisions, such as corporate officer appointments, executive compensation, and dividend policy. In some instances, board obligations stretch beyond financial optimization, as when shareholder resolutions call for certain social or environmental concerns to be prioritized.

Boards are often made up of a mix of insiders and independent members. Insiders are generally major shareholders, founders, and executives. Independent directors do not share the ties that insiders have. They are typically chosen for their experience managing or directing other large companies. Independents are considered helpful for governance because they dilute the concentration of power and help align shareholder interests with those of the insiders.

The board of directors must ensure that the company's corporate governance policies incorporate corporate strategy, risk management, accountability, transparency, and ethical business practices.

A board of directors should consist of a diverse group of individuals, including those with matching business knowledge and skills, and others who can bring a fresh perspective from outside the company and industry.

The Principles of Corporate Governance

While there can be as many principles as a company believes make sense, some of the most common ones are:

• Fairness : The board of directors must treat shareholders, employees, vendors, and communities fairly and with equal consideration.
• Transparency : The board should provide timely, accurate, and clear information about such things as financial performance, conflicts of interest, and risks to shareholders and other stakeholders.
• Risk Management : The board and management must determine risks of all kinds and how best to control them. They must act on those recommendations to manage risks and inform all relevant parties about the existence and status of risks.
• Responsibility : The board is responsible for the oversight of corporate matters and management activities. It must be aware of and support the successful, ongoing performance of the company. Part of its responsibility is to recruit and hire a chief executive officer (CEO) . It must act in the best interests of a company and its investors.
• Accountability : The board must explain the purpose of a company's activities and the results of its conduct. It and company leadership are accountable for the assessment of a company's capacity, potential, and performance. It must communicate issues of importance to shareholders.

Corporate Governance Models

Different corporate governance models may be found throughout the world. Here are a few of them.

The Anglo-American Model

This model can take various forms, such as the Shareholder, Stewardship, and Political Models. The Shareholder Model is the principal model at present.

The Shareholder Model is designed so that the board of directors and shareholders are in control. Stakeholders such as vendors and employees, though acknowledged, lack control.

Management is tasked with running the company in a way that maximizes shareholder interest. Importantly, proper incentives should be made available to align management behavior with the goals of shareholders/owners.

The model accounts for the fact that shareholders provide the company with funds and may withdraw that support if dissatisfied. This is supposed to keep management working effectively.

The board will usually consist of both insiders and independent members. Although traditionally, the board chairperson and the CEO can be the same, this model seeks to have two different people hold those roles.

The success of this corporate governance model depends on ongoing communications among the board, company management, and the shareholders. Important issues are brought to shareholders' attention. Important decisions that need to be made are put to shareholders for a vote.

U.S. regulatory authorities tend to support shareholders over boards and executive management.

The Continental Model

Two groups represent the controlling authority under the Continental Model. They are the supervisory board and the management board.

In this two-tiered system, the management board is composed of company insiders, such as its executives. The supervisory board is made up of outsiders, such as shareholders and union representatives. Banks with stakes in a company also could have representatives on the supervisory board.

The two boards remain entirely separate. The size of the supervisory board is determined by a country's laws and can't be changed by shareholders.

National interests have a strong influence on corporations with this model of corporate governance. Companies can be expected to align with government objectives.

This model also greatly values the engagement of stakeholders, as they can support and strengthen a company's continued operations.

The Japanese Model

The key players in the Japanese Model of corporate governance are banks, affiliated entities, major shareholders called Keiretsu (who may be invested in common companies or have trading relationships), management, and the government. Smaller, independent, individual shareholders have no role or voice. Together, these key players establish and control corporate governance.

The board of directors is usually made up of insiders, including company executives. Keiretsu may remove directors from the board if profits wane.

The government affects the activities of corporate management via its regulations and policies.

In this model, corporate transparency is less likely because of the concentration of power and the focus on the interests of those with that power.

How to Assess Corporate Governance

As an investor, you want to select companies that practice good corporate governance in the hope that you can thereby avoid losses and other negative consequences such as bankruptcy.

You can research certain areas of a company to determine whether or not it's practicing good corporate governance. These areas include:

• Disclosure practices
• Executive compensation structure (whether it's tied only to performance or also to other metrics)
• Risk management (the checks and balances on decision-making)
• Policies and procedures for reconciling conflicts of interest (how the company approaches business decisions that might conflict with its mission statement)
• The members of the board of directors (their stake in profits or conflicting interests)
• Contractual and social obligations (how a company approaches issues such as climate change)
• Relationships with vendors
• Complaints received from shareholders and how they were addressed
• Audits (the frequency of internal and external audits and how any issues that those audits raised have been handled)

Types of bad governance practices include:

• Companies that do not cooperate sufficiently with auditors or do not select auditors with the appropriate scale, resulting in the publication of spurious or noncompliant financial documents
• Executive compensation packages that fail to create an optimal incentive for corporate officers
• Poorly structured boards that make it too difficult for shareholders to oust ineffective incumbents.

Examples of Corporate Governance: Bad and Good

Bad corporate governance can cast doubt on a company's reliability, integrity, or obligation to shareholders. All can have implications for the financial health of the business.

Volkswagen AG

Tolerance or support of illegal activities can create scandals like the one that rocked Volkswagen AG starting in September 2015. The details of "Dieselgate" (as the affair came to be known) revealed that for years, the automaker had deliberately and systematically rigged engine emission equipment in its cars to manipulate pollution test results in the U.S. and Europe.

Volkswagen saw its stock shed nearly half its value in the days following the start of the scandal. Its global sales in the first full month following the news fell 4.5%.

VW's board structure facilitated the emissions rigging and was a reason it wasn't caught earlier. In contrast to a one-tier board system common to most U.S. companies, VW had a two-tier board system consisting of a management board and a supervisory board, in keeping with the Continental Model of corporate governance.

The supervisory board was meant to monitor management and approve corporate decisions. However, it lacked the independence and authority to carry out these roles appropriately.

The supervisory board included a large portion of shareholders. Ninety percent of shareholder voting rights were controlled by members of the board. There was no real independent supervisor. As a result, shareholders were in control and negated the purpose of the supervisory board, which was to oversee management and employees, and how they operated. This allowed the rigged emissions to occur.

Public and government concern about corporate governance tends to wax and wane. Often, however, highly publicized revelations of corporate malfeasance revive interest in the subject.

For example, corporate governance became a pressing issue in the United States at the turn of the 21st century, after fraudulent practices bankrupted high-profile companies such as Enron and WorldCom .

The problem with Enron was that its board of directors waived many rules related to conflicts of interest by allowing the chief financial officer (CFO) , Andrew Fastow, to create independent, private partnerships to do business with Enron.

These private partnerships were used to hide Enron's debts and liabilities. If they'd been accounted for properly, they would have reduced the company's profits significantly.

Enron's lack of corporate governance allowed the creation of the entities that hid the losses. The company also employed dishonest people, from Fastow down to its traders, who made illegal moves in the markets.

The Enron scandal and others in the same period resulted in the 2002 passage of the Sarbanes-Oxley Act . It imposed more stringent recordkeeping requirements on companies and stiff criminal penalties for violating them and other securities laws. The aim was to restore confidence in public companies and how they operate.

It's common to hear examples of bad corporate governance. In fact, it's often why companies end up in the news. You rarely hear about companies with good corporate governance because their corporate guiding policies keep them out of trouble.

One company that seems to have consistently practiced good corporate governance, and adapts or updates it often, is PepsiCo. In drafting its 2020 proxy statement, PepsiCo sought input from investors in six areas:

• Board composition, diversity, and refreshment, plus leadership structure
• Long-term strategy, corporate purpose, and sustainability issues
• Good governance practices and ethical corporate culture
• Human capital management
• Compensation discussion and analysis
• Shareholder and stakeholder engagement

The company included in its proxy statement a graphic of its current leadership structure. It showed a combined chair and CEO along with an independent presiding director and a link between the company's "Winning With Purpose" vision and changes to the executive compensation program.

What Are the 4 Ps of Corporate Governance?

The four P's of corporate governance are people, process, performance, and purpose.

Why Is Corporate Governance Important?

Corporate governance is important because it creates a system of rules and practices that determines how a company operates and how it aligns with the interest of all its stakeholders. Good corporate governance fosters ethical business practices, which lead to financial viability. In turn, that can attract investors.

What Are the Basic Principles of Corporate Governance?

Corporate governance consists of the guiding principles that a company puts in place to direct all of its operations, from compensation, risk management, and employee treatment to reporting unfair practices, dealing with the impact on the climate, and more.

Corporate governance that calls for upstanding, transparent behavior can lead a company to make ethical decisions that will benefit all of its stakeholders, including investors. Bad corporate governance can lead to the breakdown of a company, often resulting in scandal and bankruptcy.

Apple. " Investor Relations. Leadership and Governance ."

BBC. " Scandal Cuts VW Sales by 4.5% This Year ."

Dibra, Rezart. " Corporate Governance Failure: The Case of Enron and Parmalat ." European Scientific Journal , vol.12, no. 16, June 2016, pp. 283-290.

Corporate Secretary. " PepsiCo Finds Governance Success Through Evolution ."

• Terms of Service
• Editorial Policy
• Privacy Policy
• Your Privacy Choices

We use cookies to enhance our website for you. Proceed if you agree to this policy or learn more about it.

• Essay Database >
• Essay Examples >
• Essays Topics >
• Essay on Government

First-Rate Essay On Corporate Governance

Type of paper: Essay

Topic: Government , Principles , Investment , Stock Market , Company , Organization , Stakeholder , Treatment

Published: 11/22/2019

ORDER PAPER LIKE THIS

Corporate governance

Summary of article

There has been a shift in corporations from the objective of maximizing profit to the need to ensure value maximization which can be achieved by proper structure in place. The aspects that encourage high value attainment include aspects such as transparency, fair treatment of stakeholders, effective policies and implementation of proper operational standards in any organization.

Failure of some big organizations in the recent past has been due to poor management and governance of corporate organizations.

The definition of corporate governance according to London’s Stock Exchange Cadburry committee of 1992, is the system by which the companies are directed and controlled (Reema, & Fulbag, 2009). Principles of corporate governance emphasize on the need of proper exposure of the corporation to the relevant stakeholders in order to improve transparency. The fundamental principle of equitable treatment must not be violated. This is to ensure that market participants and investors relationship is not damaged but made closer with the company (OECD principles of corporate governance, 2004) The perception of the community towards the company is important; therefore disclosure of the organizations policies and principle of operation to the public would boost the organizations image and improve governance. Shareholders should be made aware of any major decisions made as well as receive fair treatment at all times. Good working relationships between stakeholders is bound to improve efficiency and governance in the company (OECD principles of corporate governance, 2004).

There are a number of pillars that would likely improve governance in any organization. One is to respect the rights of the shareholders and allow them access to their functions. Each shareholder has a right to access to information regarding to the company. Therefore, this information should be made available to the shareholder at any time. They should also be given the right to vote and primarily influence directly the organization. Another pillar to effective corporate governance is fair and equity in treatment of the company stakeholders and shareholders. Insider trading and abusive or any improper conduct should be discouraged. In essence, though shareholders might come from different backgrounds, fair and equitable treatment should prevail. Minority shareholders should have their interest safeguarded by the governance to prevent majority abusive shareholder from taking advantage of them. Disclosure and transparency is another pillar of good corporate governance. Matters related to financial status and spending of the company should be properly addressed and made public to the stakeholders. Other aspect that should be disclosed includes ownership of the company, remuneration policies of directors and the selection of the same, company objectives and policies. Shareholders should be made aware of their rights which include voting and their dues. Plans made by the company whether short-term or long-term should be disclosed to the public so that faith in the organization be developed by potential investors. Board members should only make decisions based on fully acknowledge facts. Decisions made should be in good faith and reflect the objectives of the company and wishes of the stakeholders and general public. Stakeholder’s interests must be taken into account by the board while making these decisions. If conflicting interests are there, then the board should treat the stakeholders fairly.

For continued success in any corporation, corporate governance should be transparent and effective. The way a company is perceived by the public and potential investors will determine its success. Successful companies are transparently and fairly run.

OECD principles of corporate governance, (2004). OECD publication service. France Reema, S. & Fulbag, S. (2009). ‘Voluntary Corporate Governance Disclosure: A Study of Selected Companies in India.’ The IUP Journal of Corporate Governance. IUP Robert, P.G.(2004).Leadership and governance from the inside out. New York.NY:John Wiley and Sons.

Cite this page

Share with friends using:

Removal Request

Finished papers: 2725

This paper is created by writer with

If you want your paper to be:

Well-researched, fact-checked, and accurate

Original, fresh, based on current data

Eloquently written and immaculately formatted

275 words = 1 page double-spaced

Get your papers done by pros!

Other Pages

Hard rock essays, manchester united essays, roxas essays, novum organum essays, stage theory essays, polybus and merope essays, mid term essays, public phone booth essays, mutual exclusivity essays, initial plans essays, qualified person essays, royal ontario museum essays, example of essay on a beautiful mind, good movie review on social movements in 1960s from the film berkely in the sixties by director mark, pipeline regulations and standards course works examples, cluster 6 essays examples, example of economics essay 4, good behavior report example, free creative writing about unsolicited sales proposal, the purpose of solanio and jessica as two minor characters in the merchant of venice essay examples, free responsibility for exposure of children to potentially dangerous toys essay example, free course work about a healthy investment at sisters of charity providence hospital, good argumentative essay on are actors and professional athletes paid too much, good essay on defining determinate sentencising, strategies of addressing five goals case study examples, free persuasive speech outline template essay sample, example of essay on apple case analysis, sample essay on a nursing problem, example of teamwork and motivation course work, mobilizing the coalition for organizational transformation course work sample, free research paper about managing information overload, new and improved rewards at work essays example, terrorism replies course work, free american experience in vietnam war essay sample, lesson 10 sentence outline essays examples, good example of essay on hallo effect personal relations, film theory essay samples, scheduling article reviews, radar article reviews, transplantation article reviews, interconnection article reviews, suppression article reviews, waiver article reviews.

Password recovery email has been sent to [email protected]

Use your new password to log in

You are not register!

By clicking Register, you agree to our Terms of Service and that you have read our Privacy Policy .

Now you can download documents directly to your device!

Check your email! An email with your password has already been sent to you! Now you can download documents directly to your device.

or Use the QR code to Save this Paper to Your Phone

The sample is NOT original!

Short on a deadline?

Don't waste time. Get help with 11% off using code - GETWOWED

No, thanks! I'm fine with missing my deadline