Melanie Johnson Unit 2 Homework - Running Header Case Study...

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Running Header: Case Study: CITIC Pacific1Melanie JohnsonUnit 2 HomeworkCase Study: Citic PacificFebruary 22, 2015Professor Tanae Williams
Case Study: CITIC Pacific2AnalysisCorporate governance is the start of the ethics code for companies. It means that companies must show equal parts involvement with the public in ways that are not just financial, but also in the community. “...These days, it is not enough for a company to merely be profitable; it also needs to demonstrate good corporate citizenship through environmental awareness, ethical behavior and sound corporate governance practices.” ()Governance is an important relationship between the company, board members and shareholders. Corporate governance can be split into four different “concentrations” to best servethe shareholders, they are:Ownership Concentration-where the stock amounts are primarily owned by individual shareholders and investors.The Board of Directors-who are the individuals responsible for monitoring upper executives.Executive Compensation-using salary, bonuses or long-term incentives to convince managers to do what shareholders want.Market for Corporate Control-purchasing an underperforming company in direct competition with rivals.(%20Management/Corporate%20Governance%20and%20Stakeholders/Corporate%20Governance%20and%20Stakeholders.html)
Case Study: CITIC Pacific3Corporate governance is important, not just as the beginning of an ethics code, but also as the separation duties in order to better serve the shareholders and employees of the company. CITIC Pacific did not use good judgment of corporate governance when they wait six weeks to release information on the loss of profits. If it had been used properly in monitoring the executives, then it would not have waited for six weeks before releasing the information.

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