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Nine Pillars of good corporate governance : Assignment

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Added on  2020-03-28

Nine Pillars of good corporate governance : Assignment

   Added on 2020-03-28

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Running head: MBA ASSSIGNMENT MBA assignment:Nine Pillars of good corporate governanceName of Student:Student ID:Name of University:Author’s note:
Nine Pillars of good corporate governance : Assignment_1
1MBA ASSSIGNMENT There are generally no second beliefs on the significance of the Small and MediumEnterprises (SMEs) industry to the economy of Dubai. As per the Dubai SME- An organizationfor the Department of Economic Development- Government of Dubai, the industry of SMEembodies approximately 95 per cent of the enterprises in the Emirates, accounting for 42 per centof the labor force. It also throws in around 40 per cent of the economy value of Dubai (TrongTuan, 2014). For reasons of incessant growth along with development of the industry of SME, itis assured that it is going to be a significant driver for the economy in the coming years. Most of the financial institutions have been doubling their financial sustainability to thisindustry in the year 2014 for the funding of the development of the business along with itsgrowth. The government has also been playing a dynamic role through proposals like theKhalifa Fund and Dubai SME 100. Taking into account the importance of growing strategiesof the industry of SME to the economy of Dubai, a policy of the corporate governance has beeninitiated boasting of nine pillars of the corporate governance (Söderström, Paasche & Klauser,2014). This is being done to guide the SMEs on the institution of healthy business proceduresalong with practices that are of transparent nature and accountable, enabling them in being moreinvestable and bankable. The first pillar of corporate governance takes in- adopting a proper framework ofcorporate governance demarcating the roles of the important bodies like the partners,management, board of directors and shareholders. The second is about conducting asuccession planning procedure. The third pillar states establishing of appropriate, open andtranslucent information flow with the shareholders. The fourth is about endeavoring insetting up of a formal Board of Directors (BOD) in accompanying the development of thecompany. Next in line is the developing of a clear authorization for its Board of Directors in
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2MBA ASSSIGNMENT overseeing the operational presentation of the business along with assessing and developingthe business strategies. The sixth pillar states maintaining of credible books of accounts thatare being annually audited by an external auditor. The seventh states the setting up of aninternal control structure in pacing and conducting a standard risk review.The eighthpillar talks about recognizing the stakeholders’ needs. Last but not the least is the pillar offormulation of a framework that sets out the relationship of the family with the business. The pillars of the corporate governance set out on significant steps that organizationsneed to undertake for the purpose of establishing practices of good governance within theframework of company. The pillars have been supporting the factors of growth, sustainabilityand objectives of profitability of the Dubai market of SMEs. Stakeholders have always been key to the enlargement and expansion of the company.The first pillar takes in the rights, roles, tasks and requirements of the significant stakeholders ofthe organization, especially the partners, board of directors along with the management. This isvital for the SMEs for their micro configuration where there is rarely overlying of duties. Itwould thus be helping the SMEs in evolving from the structure of one man to an organizationthat has entrusted responsibilities along with duties to the key stakeholders. The structuredelineating the duties should be on paper along with delegating the need of the authorities onbeing reviewed periodically with the evolvement of SMEs.The second pillar states the significance of the succession scheduling in SME.According to Das & Rangarajan, (2017), the process of planning should engross recognizing thesignificant internal people with the obligatory experience in filling up of the future leadershippositions existing within the organization. This helps immensely in the protection of the value of
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