ASSIGNMENT ABOUT CORPORATE GOVERNANCE.

Running head: CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
Name of the student
Name of the university
Author note

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Introduction
The conception of corporate governance has an extensive scope, and it involves both
institutional and social character. Thus corporate governance is the structure by which the
corporation and managed and administered. It stimulates the method the objective of the
corporation is structured and attained, the method of monitoring and assessment of risk and the
method by which the performance can be enhanced. Thus it is the set of principles, policies,
procedures as well as accountabilities and responsibilities that is applied by the shareholder to
overcome the disagreement of interest that is inherent in the company. Thus it is labelled as an
interface in between several participants such as the board of directors, stakeholders and the
corporate management in formulating the performance of the company and the method it is
progressing towards. Thus the principles of corporate governances tackle in identifying the
method to adopt an efficient strategic decision in addition to that improve added significance to
the shareholder.
Code of corporate governance
The code of corporate governance set forth the standards of good practices in connection
to issues such as development and composition of the board, accountability, remuneration, audit
and association of the shareholders of the company. The listed corporation is necessitated to
made reporting and the method that have implemented the core standards of the code of
corporate governance (Cooper 2017). In addition to that, they are necessary to report on either
they approve that they have observed with the provisions of the code or where they failed to do
so, they have to provide an explanation. There should be a conversation with the shareholders of

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the company rest on the combined comprehension of the objectives. The board has the
accountability for guaranteeing that the satisfactory discussion with the shareholders occur
(Adams 2018).
Pillars of corporate governance
The pillars of effective corporate governance are fairness, accountability, assurance,
transparency, stakeholder management and leadership. In amongst these, the major three pillars
are transparency, accountability and security. Transparency in simplest term implies the
company should allow transactions and processes visible to the outsiders. It also implies making
necessary disclosures and also to notify everyone who is affected by its decisions as well as co
ply with the statutory requirements (Nakpodia 2016). Thus transparency is the crucial
components as it guarantees the action of the corporation can be monitored by at any point of
time by the outside observer. Accountability as the pillar of good corporate governance plays a
crucial role to establish integrity in the corporation. Accountability also indicates taking liability
or answerability. The shareholder of the company has intense concentration about who will take
the liability in case anything went wrong. The third pillar of effective corporate governance is
security (Serra, Font and Ivanova 2017). The company is anticipated to make procedure
transparent and also there individually answerable while maintaining there enterprise information
secure from unsanctioned access. Therefore assimilating three pillars that are security,
transparency and accountability describe the integrity of the company ( Brunton, Eweje and
Taskin 2017).

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Case study
In Theranos, Elizabeth Holmes who is chairman and founder of the company established
with the Securities and Exchange Commission when she was accused with committing $700
million of deception against the public as well as to the investors. The innovators who pursue to
disrupt and revolutionize an organization should tell the investors the reality about what
technology can do today not just it hoped what it might do someday said by the director of SEC.
Corporate governance facilitates the outline for achieving the objectives of the company.
According to John Carreyrou, who published the book named Bad Blood, Secrets and
Lies in a Silicon Valley Startup. Holmes who student of Standard University who dropped out
college to inauguration a company assuring to make blood examination which was as convenient
as that of iPhone. However, Holmes constructed structure that was very unusual in the field of
corporate governance (Luyima 2015). As the founder, she has she had efficient, comprehensive
management with the dual-class structure of shareholding that importantly implies that everyone
vote than could be made by the shareholder. As James Angel and Wayne Guay discussed in the
podcast for “ Wharton School of Business “, Theranos was an instance of the failure of corporate
governance that defrauded investors of $700 million.
It envisages practically every aspect of management as well as corporate disclosures.
Theranos evidently deficit efficient corporate governance that stabilizes aspirations of Holmes
with transparency that is required for the suppliers, customers, financiers, government as well as
to the community. It was assured by Holmes that more than two hundred examinations would be
carried out with her novel technology. However, in practice about dozens of test were conducted.
She guaranteed to the investors that planned revenue would be $100 million approximately,
whereas, in fact, the revenues were closer to $100,000 in 2014. Therefore in the company, there