Running head: CORPORATE GOVERNANCE Corporate governance Name of student Name of instructor Course title Date of submission
2 CORPORATE GOVERNANCE Introduction Corporate governance can be described as the system of practices and processes through which a company or organization is controlled and directed. There are competing interests in a company between the different stakeholders, community, customers, the management, and government. Corporate governance aims at balancing these competing interests. Regardless of the size of a company, it needs a structure and a plan for the future. Stewardship in governance is critical, as the executives of the company can protect and take care of the interests of the shareholders. They also aid in decision making on behalf of these stakeholders. Agency theory in corporate governance is also crucial, as agents can represent the interests of the shareholders of a company or organization. Regarding strategic planning and corporate governance, the roles and responsibilities of leaders and managers have been reduced. Some of the responsibilities include appointing and reviewing or assessing the performance of a C.E.O of a company (Grove & Clouse, 2016). They are tasked with the obligation of assessing the performance and hiring the chief executive officers of a company. Secondly, they define the corporate conduct code of an organization. This includes all its relationships with the interest groups such as the shareholders of the company.
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- Spring '16
- Business, Management