Contemporary Corporate Governance Essay Example | Topics and Well Written Essays - 2500 words

Contemporary Corporate Governance - Essay Example From the research it can be comprehended that governance refers to governing someone with the help of some specified system, policies and principles. Thus corporate governance can be described as the principles, specified processes, policies and systems which are used to govern a company. The principles of corporate governance acts as the guidelines which are used to control the activates of the company so that it can it can achieve its objectives at the same time it can also add value to the organisation in such a way so that the stakeholders can be benefited in long run. Thus corporate governance helps the management to operate in such a way so that not only the shareholders but also the other investors, employees, customer and the society as a whole can be benefited from the actions of the company. The basic premise behind the principles of corporate governance is to enable the organization to conduct its activities with fairness, maintain transparency in its operations and transa ctions, disclose all the relevant information, comply with all the rules, regulations and laws, being responsible accountable to all its stakeholders and to maintain the code of ethics while conducting its activities. Practice of ethical activities is an important part of the corporate governance. Good corporate governance enables the company to achieve investors’ confidence and achieve goodwill in the industry. Thus corporate governance is not only important for the stakeholders but also for the company too. (Thomson, 2009). OECD has described corporate governance as a system through which companies and other business organisations can be controlled as well as directed. Corporate governance helps to setup a structure as per which the responsibilities and the rights of the various members of the companies like the board of directors, employees, shareholders etc can be specified. Corporate governance set the rules, regulations and the processes of decision making regarding the activities of the company. The corporate governance helps the company in setting up the companies objectives and goals and also enable the company assess its performance and helps in achieving them. Corporate govern