Why is corporate governance an important concern for companies? For your “Complete” assignment, write a narrative essay addressing the four questions or statements listed below.
Your essay must follow APA format, include a minimum of 1,200 words, and 3 scholarly resources.
Why is corporate governance an important concern for companies that are pursuing the social responsibility approach? How does it improve or change the nature of executive and managerial decision-making? What characteristics of the board of directors usually lead to effective corporate governance?
List and explain challenges that have contributed to the cause of corporate governance failures. What is the rationale for government to regulate the activities of businesses? How is our economic and social existence shaped by government regulations? Compare the costs and benefits of regulation.
In your opinion, do the benefits outweigh the costs or vice versa? What are the advantages and disadvantages of deregulation?
Ferrell, O., Thorne, D., & Ferrell, L. (2021). Business and society: A strategic approach to social responsibility & ethics (7th). Chicago Business Press.
The four P’s of corporate governance are people, process, performance, and purpose.
Corporate governance is important because it creates a system of rules and practices that determine how a company operates and how it aligns the interest of all its stakeholders. Good corporate governance leads to ethical business practices, which leads to financial viability.
The basic principles of corporate governance are accountability, transparency, fairness, and responsibility.
Examples of corporate governance include the Anglo-US model, the German model, and the Japanese model.
Corporate governance consists of the guiding principles that a company puts in place to direct all of its operations, from compensation to risk management to employee treatment to reporting unfair practices to its impact on the climate, and more.
A strong, transparent corporate governance leads a company to make ethical decisions that benefit all of its stakeholders, allowing the company to place itself as an attractive option to investors if its financials are also healthy. Bad corporate governance leads to a breakdown of a company, often resulting in scandals and bankruptcy.