Importance of Corporate Governance in Business Organizations

Running head: APPLIED BUSINESS RESEARCH
Applied business research
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APPLIED BUSINESS RESEARCH
Table of Contents
Introduction................................................................................................................................3
Common Themes and Findings.................................................................................................4
Conceptual understanding of auditors and corporate governance.........................................4
Different Themes and Findings..................................................................................................5
Managerial Implication of the articles.......................................................................................6
Auditor’s responsibilities and contributions toward corporate governance...........................6
Study Limitation and future research dimensions......................................................................7
Recommendations..................................................................................................................7

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APPLIED BUSINESS RESEARCH
Introduction
The following report is based on the identification of Corporate Governance and to
state the importance of Corporate Governance in the modern day business world. Corporate
Governance can be said to be the comb nation of rules, laws and business processes through
which the management of the business enterprises controls the operations of the business. It
also involves the processes through which the management controls and regulates the
business organizations (Aguilera Judge and Terjesen 2018). The corporate governance
process is a complex and chain process through which that involves the stakeholders,
suppliers and the consumers of the company. The management along with the board of the
directors of a company is responsible for the formulation of the necessary theories and
frameworks that can define the perspectives of the corporate governance. The frameworks are
formulated in such a manner that it helps the management of the business organizations to
address the issues in the most effective and controlled manner.
The system of the controlled manner is involved directly with the different kinds of
the business processes. These includes the creation of a proper action plan and the creation of
a business structure that helps the management to easily link the goals of the corporate
governance with that of the objectives of the business (Alzeban and Gwilliam 2014). The
policies, action plans and the other frameworks helps the enterprises to maintain the different
kinds of standards related to the same. The formulation of the corporate governance process
helps the management of the business to eradicate any forms of improper structures, irregular
and unethical practices to ensure the financial success of the business. The corporate
governance process of the organizations must be incorporated by means of legal and
contractual obligations. The implementation of the legal and contractual obligations will help
in the operational and financial stability of the different business organizations.