Corporate Governance: A Review of the Literature

The provided assignment content appears to be a collection of academic articles and resources related to corporate governance. The sources include studies on the credit crisis, board composition, voluntary disclosure, controlling shareholders, merger activity, agency costs, compensation contracts, investor protection, and say-on-pay proposals. The list also includes speeches by regulatory bodies, such as the Financial Services Authority (FSA), and reports from organizations like RiskMetrics and the Centre for Economic Policy Research. Overall, the content suggests a focus on understanding corporate governance practices, their effects on corporate performance, and the role of various stakeholders in ensuring effective governance.

GOVERNANCE RISK AND ETHICS
University
GOVERNANCE RISK AND ETHICS
ASSESSMENT
CASE STUDY AND ANALYSIS: AMAZON
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Lecturer’s name
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Table of Contents
Introduction......................................................................................................................................3
1.0 Selecting the company...............................................................................................................3
2.0 Analysis of main corporate governance and ethical issues.......................................................3
The incentive and remuneration system of Amazon: New form with Old issue.............................4
Risk management standards and Practices of Amazon: the Missing Element................................6
Points to Board of Amazon: Are they coping?................................................................................8
Shareholders of Amazon protecting their interests..........................................................................9
3.0 Theories relevant to this case...................................................................................................10
4.0 Literatures relevant to the case................................................................................................13
5.0 Conclusion...............................................................................................................................17
Reference List................................................................................................................................18
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Introduction
Corporate Governance has been a major concerning issue for managers and directors of many
companies. Through focusing on the main areas, an organization ensures that company is
controlled or directed properly and the director acts on behalf of their shareholders. This study
encompasses with the different corporate governance and ethical issues faced in a selected
organization in order to highlight the key areas that have been affecting the growth graph of a
company.
1.0 Selecting the company
In order to meet with desired outcome of the study, Amazon UK has been selected in context of
underlining the different governance issues faced by the company. Based on the nature of
governing committee of company, the selection has been done so that existing barriers and
loopholes could be underlined along with key factors affecting and responsible for rapid growth
of these issues.
2.0 Analysis of main corporate governance and ethical issues
As opined by Berle and Means (2011), corporate governance can be referred as the system
through which companies are controlled and directed. Further, he added that a good corporate
governance system allows the Board of directors to enhance their capability for driving the
company forward but exercising freedom within an effective accountability framework. As
suggested by Thompson (2012), corporate governance can be considered as highly increasing
crucial issue for companies due to following reasons:
1) The requirement of management control and separate ownership, meaning that many
companies operate within a pre-defined hierarchy or chain of the governance and this particular
chain are represented to the different groups impacts the organizational process.
2) The Increasing tendency for making organization more visible, responsive and accountable for
not only managers or owners in the corporate governance chain but also focused to the wider
stakeholder range (including community widely).
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Case Study of Amazon
The charter (Corporate governance committee charter and nomination) governs operation of
Nomination and the committee of Board of Directors of the Amazon. Board has appointed the
committee consist at least two managers and directors where each of the director is responsible
for meeting with Nasdaq Stock Market (NASDAQ) needs in respect to the independency
determined by Board. The responsibilities of this committee includes reviewing the charter
periodically and to recommend the relevant changes to Board (NASDAQ 2017).
The following are the main purpose or responsibility of Committee:
 Reviewing and assessing composition of Board,
 Assisting to recognize the potential new applicant for the Director,
 Recommending the applicants for the election such as Directors, and
 Providing the role of leadership in respect to the corporate governance of the Amazon
The incentive and remuneration system of Amazon: New form with Old issue
Governance of incentive or remuneration system at Amazon has often been observed failed due
to the decisions and negotiations those are not properly carried out at their arm’s length.
Managers have had high influence over conditions and level for the performance based incentive
or remuneration with the Boards incapable to exercise the objective and independent judgment.
The usage of organizational stock price as single measure does not allows the company to
benchmark the industry specific performance with the market or industry average.
For testing, whether organization has an effective system of corporate governance has highly
related to the judgments related to incentive or remuneration system. For example, Wheelen et
al. (2013) suggested that in judging about Amazon whether Corporate governance in UK is
serious towards reforming itself, CEO (Chief Executive Office) pays fir acid test. However, the
Chairman of Amazon has stated that one of the crucial unsolved problems in company is the
executive compensation and its determination process. It becomes easier to understand the
differences in the chart of incentive or remuneration system of Amazon presented in the figure 1.
It can be seen that compensation of CEO has rapidly increased comparing to an average worker
since 1994. Based on the different opinions made by authors, it can be said that the ratio remains
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neutral even if the company size is increasing daily (Shorter and Labonte, 2013). Another
instance that can be taken into consideration is the implementation of performance based
incentive or remuneration in early 1995.
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
0
50
100
150
200
250
300
Ratio of Average Worker pay to CEO of Amazon
from 2001-2010
CEO
Average Worker
Figure No. 1
(Source: Ryan and Wiggins, 2012)
It has been noticed not only in Amazon but also to some major organizations in UK as
economical or political acute. Another data was significant to denote the development and
growth of CEO comparing to average worker that has drastically the business process of
Amazon. However, the fact was never denying that the moderate growth ratio that has caused
competitors to peer into political and economical invention in the company. The concept of
‘Paying for Performance’ was nevertheless concerned as significant reason behind the rumors.
However, in most of the cases, the failed performance of an executive was documented very well
to frame the salary and bonus structure annually. On the other hand, performance measurement
process of an average worker underneath the expected solution. Based on the opinion made by
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Sants (2010), it can be interpreted that ‘Under Water’ option (option when strike price is higher
compared to existing market price) has been re-priced or replaced for preserving compensation
value.
Risk management standards and Practices of Amazon: the Missing Element
Perhaps a great shock from financial crisis has been widely spread due to the failure in risk
management of Amazon at UK market. As opined by Acharya and Franks (2017), many cases
are the evident of underlined failure due to the lack of risk managing skills and capabilities of
managers at the company. Risk managers have been separated from the management not
regarded themselves as unessential part of organizational strategy. In most of the cases, risk
managers lacked the status for enforcing policy and accumulating the red flags on top caused for
the ultimate consequences behind the wall.
There are two sources widely used to assess the risk management of an organization such as
Internal Control (integrated framework 1992) and Enterprise Risk Assessing management
(integrated framework 2004). Based on the recent reports analyzed the mechanism Amazon
recently used in order to improve their risk management and shield from the competitors.
Controlled Environment
Amazon had recently tried taking control over the work environment and the tried to influence
the ample number of customer. However, the steps taken to control the work environment could
not produce the positive consequences for the company and resulted into lack of employee
satisfaction and high competitive threat.
Risk identification
In order to address the market risks, Amazon has appointed a committee. Committee was
responsible for recognizing the risks and challenges assessing the existing business process.
Committee members included the high-level managers, experts and business analyst. This
committee was intended to bring the estimated outcome and therefore, playing crucial role in
enhancing current business operations. However, the consequences of step taken by the company
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Monitoring
Comms & Information
Risk Assessment
Controlled Environment
Operations
Financial
Compliance
Sales/marketing 2
Sales/Marketing 1
Manufacturing
Head Office
Controlled activities
GOVERNANCE RISK AND ETHICS
could not be fruitful and resulted into higher risk for Amazon with 3.1% ratio. Moreover, drastic
consequences were noticed while risks were assessed based the assumptions only.
Controlling the activities
Activity control was based upon finding or identifying of risks associated with in business
processes. It was the responses against the risks, which could have either detective or preventive
controls. The management was lacking the resources for controlling their activity due to the big
failure in identification of the risks.
Communication and Information
The communication and information was tried to enhance in order to influence the lack of
business communication at Amazon. As stated by Becht (2012), the existing barriers in verbal
and non-verbal communication at Amazon had negative impact over increased sales and
empowering the employees to gain the knowledge sharing at the workplace. Furthermore, these
barriers were also a wall between the high-level managers and normal staffs.
Monitoring
Monitoring the project has been less fruitful for Amazon that was corresponded only with the
managers. As opined by Boone (2012), monitoring a project or operation is relied over the
outcomes on other components while dealing with customer retention. However, the barriers in
project monitoring were a big challenge due to the lack to active participation of each staffs in
the project. For example, the communication and information sharing was not effective at the
workplace so that the person responsible for monitoring the project could not able to identify
each employee perception about the project or business process.
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Figure No. 2
(Source: Bujaki and McConomy, 2016)
Points to Board of Amazon: Are they coping?
The role of Board members is as important as customer buying behavior in enhancing sales and
marketing of an organization. As opined by Shleifer and Vishny (2015), it seems very difficult to
find out the “Silver bullet” for an organization in form of regulation and laws for improving the
board performance. It leaves private sector to carry out the crucial responsibility for improving
board practices by implementing the voluntary standards.
In this section, authors have highlighted how the negative assessment regarding both risk
management and remuneration has been continuously pointing to the boards and rising potential
threats as well as difficulty in identifying the direct regulation for sorting out the problem. Based
on the functionality of Committee established by Amazon, the following purpose was proposed
to carry out for improving the organizational potential.
Purpose of the Committee
1) Assessing and reviewing the board composition
This committee is presently recommending to Board assignment of chairs and committee
members for each committee. It also reviews qualifications of each director for continuous
services on a Board. Apart from that, the Committee helps Board in their annual Director and
CEO self-evaluation.
2) Assisting in identifying the potential candidates for Director
In order to evaluate and identify the prospective applicant for Director, the Committee has been
given the responsibility for recommending and developing the same. The periodic review of the
policy is evaluated through the Committee, recommended by the Organization’s shareholders.
The Committee is also responsible for reviewing and identifying the applicant qualification for
the Director.
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3) Recommending applicants for the election as Director
In order to reelection or election of the applicant as Director, the Committee suggest to Board
during every annual meeting with stockholders along with recommending appropriate applicant
for being elected as Director.
4) Providing the role of leadership in respect to the corporate governance of the Amazon
Considering the basic corporate governance, the Committee periodically develops and reports to
Board along with necessary changes required to the Business. The Committee is also responsible
for recommending the compensation for newly appointed Director.
However, it has been found that Amazon has attempted for reinforcing oversight function of
Board through appointing some members by their special constituency as minority stakeholders.
As opined by Short and Keasey (2010), giving independence to some members of board might
be necessary or important but not enough, or sufficient. Therefore, it can be interpreted that
along with independence of board member, they are required to provide some rights in order to
meet with business requirements and meeting with proposed target market. It has been found in
case of Amazon that Board members with lack of resources and rights incapable to meet
organizational goal. Moreover, requirements with time intension are also important in regards to
address the policy issues. Apart from that, the Board structure relies over separation of Chair
positions and CEO of Amazon that puts barrier in conveying the required message to each staffs.
It has caused lack of privacy or business discussion required to implementing business strategy
and developing the potentials for growth. Therefore, authors have suggested the authorities for
considering the business promotion independently and developing the board objectives.
As per the viewpoint of Becht (2012), small jurisdiction may face special or crucial policy issue
that may require the policy initiative. Furthermore, the sharing of information must include the
other board memberships to be indulged in independent board functions.
Shareholders of Amazon protecting their interests
The interest of management and shareholders is aligned in past period in bull market but no
sustainability was associated with it rather than dealing with short-term behavior of the staffs of
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Amazon. In the context of Amazon, shareholders have been failed for ensuring the board
accountability. As per the opinion of Holmstrom and Kaplan (2012), in order to gather
knowledge about active participation of shareholders in a business, it is important to consider
their past behavior and interest from a company. On the other hand, rather than seeing a
shareholder as only a business partner, considering and showing them as an important asset to
the business can be significant for filling the gap in past. The IMA (Invest Manager Association)
of Amazon began to quit the market of Amazon considering it less important and less interesting
in terms of discussing business with them. In many companies, sufficient (small) numbers of
shareholders have taken very significant decision about the business operation. The principle of
Amazon advocates the wide range of rights shared with Shareholders that includes their
information access from the company. During the review of principle of Amazon in 2007, it has
been found that in past 4 years, Amazon has limited their information shared with the
shareholders in order to maintain the privacy issues raised earlier. Nevertheless, the recognition
of institutional shareholders was higher compared to other varieties. Moreover, company
considered their shareholders only as a defender that deeply affected the business strategy of
Amazon. On the other hand, from the beginning of 2009, Amazon has introduced various
implementations for encouraging their shareholders and allowing them to participate in Annual
General Meeting. On the other hand, the company also reinforced their shareholder base in order
to encourage the constructive engagement.
3.0 Theories relevant to this case
Based on the study about Amazon, this study comprises with ample number of theories and
models for understanding the business potential of Amazon. It has helped in identifying the
strengths, weakness, opportunity and threats of Amazon in the UK market.
SWOT Analysis
Being a leading online retailer, Amazon has left the footprint in all over the world and spurred
physical, mortar and brick in order to realizing the online presence in global economy. However,
the success graph of Amazon is evident for stating the sufficient business operations in online
world.
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Strengths
Since being as one of the largest online retailer in the world, Amazon has been defining the wide
number of strengths in context of business operations. The business strategy of the company is
relied over three key components such as focus, differentiation and cost leadership. These
strategies has assisted Amazon in establishing the deep-rooted consumer trust over brand as well
as influenced the shareholders to derive value from company. The primary focus of Amazon has
been on competition market and gaining the benefit, company has rapidly increased their global
presence. However, it would not be wrong that customers are widely affected and associated
with online shopping that is well handled and developed by Amazon. On the other hand,
utilization of effective distribution system and superior logistic has been profiting the business of
Amazon as well affecting the customer retention significantly (Holmstrom and Kaplan, 2012).
Weaknesses
The weaknesses of business strategy of Amazon have been noticeably significant in the context
of poor risk management system and lack of governing/ethical issues at workplace. Apart from
that, the diversification strategy of Amazon has been underlined as major weakness point for the
company. It means that company is allowing the consumers to go for wide variety of products
online rather than specializing in online book retailing industry (Bujaki and McConomy, 2016).
Authors have identified one of the biggest weaknesses of Amazon is its business model of Zero
Margin that highly affect the profit margin of Amazon as well as affecting the current business
strategy and net revenue.
Opportunities
However, Amazon has many weak points that may hinder the opportunities existing in the
current market place but there are many opportunities awaiting the decisions and project
implementation for Amazon. Since the implementation of Online Payment system of Amazon,
customers are remarkably attracted towards Amazon (Short and Keasey, 2010). Authors and
business analyst has suggested that improved privacy and security can be an added opportunity
for Amazon can it may have direct impact over consumer buying behavior. Apart from that,
through increasing the portfolio of offerings where company has high stocks can ultimately
result into extra revenue for them.
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Threats
As per the viewpoint of Gilson, R.J., (2016), one of the biggest threats for an online retailer
company is its market competition with wide variety is entertaining the consumers. Similarly,
there are ample numbers of competitors challenging the business strategy of Amazon as well as
affecting the consumer retention strategy of the company. Competitive pricing strategy towards a
particular product or service can be another form of threat for the company. Apart from that, the
high concern of consumer about theft of identity and leaving their information exposed can be
counted another concerning threat for Amazon.
This analysis concerns about the future strategies of Amazon widely significant for the
development and high potential. On the other hand, this analysis has tried to highlight the key
concerning areas including both profit margin and threats for Amazon.
Agency Theory on Corporate Governance
The agency theory critically analyses about the modern corporation (that hold the share
ownership) that departs with managerial actions required maximum returns for the shareholders.
As opined by Short and Keasey (2010), owners can be referred as the principals whereas
managers as Agent. Therefore, the agency loss can be considered since the owners, residual
claimants fall under the principal (exercising the direct control of corporation). However, this
theory considers the delegation must be minimized since it leads towards abusive content. As
argued by Gilson (2016), the agency theory leads towards unrealistic organizational and human
viewpoint. Furthermore, in order to recognize the broad range of the human motives, agency
theory is applied, which is drawn on the basis conventional theory.
Some authors have argued with the behavior of this theory and suggested that agency theory
focuses on inherent investors. Moreover, agency theory comprises with the assumption about
homogeneous essentiality of the company, which directly or indirectly affects over governance
structure of a firm. In the context of Amazon, it can be interpreted that Amazon has been ruling
on the agency theory that deals with outperform of others. Meaning that Amazon has been
indulged highly on shareholders rather relying on own business platform. This theory is failed in
identifying the consistency, which controls more over managers responsible for producing the
better results. Based on the viewpoint of Jensen (2010), it has been found that manager can
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perform even better under their self-regulation that is consistent along with more benign
viewpoint of managers. Therefore, it can be said that leaving the manager independent can
produce significant results rather than equipping them with certain amount of rights and
responsibilities. However, this can apparently affect the business plan since the value of
managerial indulgence and other ethical proposition.
Stewardship Theory
The stewardship theory analyses the situation responsible for de-motivation of the managers
from individual goal, but instead focuses on stewardship motives that is aligned with the
objectives of their own principals. As stated by Shorter and Labonte (2013), if a manager has
been given the choice between pro-organizational and self-regulating behavior, the behavior of a
steward might not be departed from the organizational interest. The reason behind this is a
steward prefers high utilization in a cooperative behavior and their behavior could be considered
as rational. Based on the viewpoint of Holmstrom and Kaplan (2012), once the motivation of an
executive fit model of human is relying on the stewardship theory, empowering the governance
structure can be appropriate. Therefore, the first question that comes in mind is about the
applicability of stewardship theory compared to agency theory in the context of addressing
governance issue in an organization. The answer is hidden behind the risks associated with the
business. In a contract of governance, it has been highly recommended to decide the assumption
of risk level a company can take with the wealth. Implementation of mechanism of stewardship
governance for an agent might be analogous for turning into the fox house from hen (Boone,
2012). There are ample numbers of dimension from which an agency theory is different from
stewardship theory assumption. It is divided into two factors such as Psychological factors and
Situational factors. Psychological factors can be referred to Motivation, Using the Power and
Identification. On the other hand, Situational factors can be referred to Power distance,
Management Philosophy and culture.
4.0 Literatures relevant to the case
The corporate governance can be referred to the term that briefly analyses the methods,
customer, institutions, laws and processes that directs corporations and organization in a way
they administer, control and act their operations. As per the viewpoint of Becht (2012), corporate
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governance works for achieving organizational goals and helps in managing the relationship
between shareholders and Board of directors. Furthermore, it also helps in dealing with
individual accountability through a special mechanism that reduces the problem of principal-
agent in organization. As stated by Acharya and Franks (2017), good corporate governance can
be called as essential standard to establish striking investment market or environment that is
required by the competitive organizations for gaining the top position in profitable financial
market. Fine corporate governance can be said as fundamental for economies with widespread
business background as well as success ground for the entrepreneurship.
However, the ownership separation from control has been the core for agency problem facing by
many firms (Shorter and Labonte, 2013). It may lead to derive to different issues associated with
efficient control over organizational assets in interest of shareholders. However, the practice of
good corporate governance includes the debates of principal and agents. The behavior of
principal is based upon the freedom he/she owns over entire business and the operations. On the
other hand, agents are bounded with certain rights and limited independency drastically affecting
the ultimate outcome of the business strategy. It is also widely affecting the relationship between
the directors and shareholders. Based on the opinion made by Sants (2010), it can be interpreted
that the complex structure of corporate governance includes significant dimensions to be solved.
Furthermore, he added that the importance of corporate governance arises in many modern
organizations due to ownership control and management separation. It has been widely affecting
the interest of shareholders who are equally responsible for the contribution in developed
business growth graph and achieving of targeted market. Corporate governance cannot be
defined exactly but can be viewed or observed from different angles (RiskMetrics, 2015). Author
has defined it in his own way and referred the corporate governance as ownership allocation,
capital structure, manager incentive schemes, board of directors, takeovers, pressure of
institutional investors, market competition on product and labor market, and industrial structure
and so on. Corporate governance helps in determining how top decision makers of the firm
actually administer or handle such contracts.
Literature on remuneration system
Political and public concerns regarding remuneration and incentives at the financial institutions
have been inflamed from the number of data and information released. Based on the viewpoint of
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Sants (2010), the lack of performance measurement tool has been significantly affecting the
growth of an employee at the workplace along with less efficient participation in the corporate
governance. Remuneration system in a firm has been widely considered as the way to resolve the
principal-agent propaganda. Nevertheless, the invention of different schemes was concerned only
for the growth of managers and board of director. However, authors have different viewpoint
regarding the behavior of managers and others. As opined by Ryan and Wiggins (2012), there
are many conceptual approaches possible in context of implication of remuneration in a firm.
Behavioral finance suggests the potential loss from the equity ownership that might not be
regarded as the cash compensation. As stated by Byars (2010), remuneration or incentive
schemes are overly the obscure or complicated in the ways that conceal consequences and
conditions. They intended for being asymmetric with certain limited risk thus, challenging the
capability of taking excessive risk. Lack of transparency is highly remarkable while going
beyond the disclosure. It has also been found that many firms are incapable of explaining the key
characteristics of the performance directly related with remuneration program in non-technical
and concise terms. This also lacks of including the total cost, criteria for performance, and the
adjustment of remuneration and related risks.
Literature on Risk management
Failure in dealing with the aspects of corporate governance in risk management has not been
confined to the financial corporations. The relation of risk management in corporate governance
is as important as developing the plan for sorting those risk (Wheelen and Hunger, 2013). It has
been found in most of the cases that due to lack of internal control and some sort of effective
communication has been a concerning issue for the company since it has potential threats to
business. As per the viewpoint of Jensen (2010), it is the responsibility of senior management
and CEO for managing and assessing the organizational exposure to the risk, audit committee
need to analyze the policies and guidelines to govern the handling process. Perhaps a great shock
from financial crisis has been widely spread due to the failure in risk management of Amazon at
UK market. As opined by Berle and Means (2011), many cases are the evident of underlined
failure due to the lack of risk managing skills and capabilities of managers at the company. The
widespread impact of risks associated with corporate governance has been referred to promotion
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of challenging and tough business environment thus, enabling better platform for the competitors
to gain the advantage.
Literature on the role of shareholders in corporate governance
As opined by Jensen and Meckling (2016), shareholders are very crucial asset for an
organization due to their roles and responsibility that is directly related with improving business
growth chart and owning the competitive advantage. Amazon has introduced various
implementations for encouraging their shareholders and allowing them to participate in Annual
General Meeting. On the other hand, the company also reinforced their shareholder base in order
to encourage the constructive engagement. As stated by Grant (2015), in many companies,
sufficient (small) numbers of shareholders have taken very significant decision about the
business operation. On the other hand, from the beginning of 2009, Amazon has introduced
various implementations for encouraging their shareholders and allowing them to participate in
Annual General Meeting. However, the top-level manager controls the involvement of
shareholder and enabling their roles for enhancing their business. In most of the cases, it has
been found that many firms utilizes their shareholder just as a form of shield rather than using
them to grow the market potentiality and attracting wide range of consumers. However, the
interest of shareholder is relied upon the interest of manager. Therefore, it can be interpreted that
through allowing independence to managers and removing their certain limitation might produce
positive consequences for the company through enabling the shareholders to take active
participation in each business strategy. However, the different types of shareholders lack the
proactive approach thus, lacks in poor seldom and insufficient number of changes of differences
to the company. In order to gather knowledge about active participation of shareholders in a
business, it is important to consider their past behavior and interest from a company.
Literature on the role of Board of director
The practice of boards in terms of regulating good corporate governance is deeply rooted with
allowing or disallowing the business strategy needs. As per the viewpoints of Thompson (2012),
firms must comply with facilitating the competent board creation that can fulfill the objectives
and make independent judgment. Corporate governance works for achieving organizational goals
and helps in managing the relationship between shareholders and Board of directors. The
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importance of corporate governance arises in many modern organizations due to ownership
control and management separation. On the other hand, lack of specified duty and board member
liability has not been remained disclosed thus, policy agenda affected deeply. As stated by Kole
(2013), there are many debates about the independency of Board members over the corporate
governance. Some authors have identified that applicants appointed as boards have many
limitations and they lacks decision-making process efficiently. On the other hand, agents are
bounded with certain rights and limited independency drastically affecting the ultimate outcome
of the business strategy. It is also widely affecting the relationship between the directors and
shareholders. However, the members are superior and keep track of the entire project but
considering their rights and duties it can be said that the final reporting person and one who can
make decision must be free from limitations. The greater impact over business strategy is the
consequences of decisions taken from the board member during the critical situation (Jensen
2010). The ample number of viewpoints regarding the debate about rights and independences of
board members is sufficient in understanding the ethical dilemma of a proposed business
structure.
5.0 Conclusion
Corporate governance can be called as the application for best management practicing and
adhering to the ethical standard for an effective management, wealth distribution, social
responsibility discharging for developing the sustainability of all shareholders. In this study,
researcher has tried to deal with the different corporate governance issue or ethical issues
affecting the business strategy and operation of Amazon. In order to meet with existing
loopholes and barriers to business standards to largest online retailer (Amazon), researcher has
briefly analyzed the corporate governance along with different components such as Risk
management, Role of Board member, Shareholder engagement and practice of
remuneration/incentive system of Amazon. Apart from that, researcher has used ample number
of theories relevant and significant for understanding the behavior of the case. Moreover, wide
number of resources is taken into consideration for briefly assessing the consequences of
different corporate governance elements.
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