Corperate Governance Mechanisms | Assignment

Running head: CORPORATE GOVERNANCE
Corporate governance
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CORPORATE GOVERNANCE
Table of Contents
Introduction..........................................................................................................................2
Reason for poor corperate governanace in state owned enterprise......................................2
Reasons for failure of existing corperate governance mechanisms.....................................2
Effective solution to these problems....................................................................................3
Conclusion...........................................................................................................................5
Reference list.......................................................................................................................6

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CORPORATE GOVERNANCE
Introduction
Corporate governance in an organization is a set of rules which aids the organization in
doing their daily work. Corporate governance consists of all the various internal and external
factors which comes under the interests of the various stakeholders of the company which
includes the employees, customers, government regulators as well as the suppliers of an
organization. The board of directors of a company are the makers of the corporate governance
which aligns with the structure of the company. Some of the various processes which comes
under the corporate governance of the company are disclosure practices and the performance
measurement of the company (Khan, Muttakin & Siddiqui, 2013).
Reason for poor corperate governanace in state owned enterprise
Unclear accountability in the state owned enterprises is the main reason due to which
they are unable to implement stable corporate governance in their system. Accountability in the
state owned enterprises shows the inherence of various policy interest among them (Khan,
Muttakin & Siddiqui, 2013). This is the reason they are unable to implement a robust corporate
governance in them. State owned enterprises around the world must ensure that their leaders and
the managers are capable enough to ensure that a smooth implementation of corporate
governance will be carried out in the company (Yermack, 2017).
Reasons for failure of existing corperate governance mechanisms
There are a lot of aspects which can be attributed to the failure of the present corporate
governance in the modern business context. Some of these aspects are mainly lack of integrity in
the organisation, poor ethical leadership quality, fraud in the company and violating the
corporate governance rules. Most of the corporate governance rules makes the thing worse, and