corporate governance

Corporate governance may be defined as the way that a company runs. It includes stake holders, shareholders, management, a dialog box of directors and people such as the customers, creditors, suppliers, regulators and the community at adult (www.indianmba.com). All companies commit a set rules and regulations that the company mustiness abide by. Corporate governance is believed to be beneficial to the employees of opposite companies as well as the company itself. An example of the benefits that in corporeald governance creates is that it ensures ethical standards of the company, security of company funds and too adheres to formal laws. (searchfinancialsecurity.com) These laws and standards sound formal and legit, but there has been a rope of debates concerning the issues that corporate governance has created. There has been a hardly a(prenominal) governance failures that have caused people to become cautious close to the security of corporate governance.

The lack of investor confidence had a lot to do with the failure of corporate governance. Investor confidence is the trust that abides between the lender, the borrower, and those of the company. In some cases Chief Executive Officers and other employees that have access to the finances of corporations could not be trusted.



Because of this, money has been embezzle from various companies forcing them to declare bankruptcy or become swamped with debt.

A company that portrayed a good example of corporate governance failure is Enron. Enron was a intrinsic gas heartiness plant that desired to create the first nationwide indispensable gas pipeline after joining two natural gas plants together. (http://encarta.msn.com/encyclopedia_701610398/enron_scandal.html) This company completely lost its investor confidence. Enron was in huge debt for many years, but they attempted to hide it in distinguish to save the company from bankruptcy. While doing this, Enron filed false financial reports feed people to believe that the companys status was better...If you involve to get a full essay, order it on our website: Ordercustompaper.com



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