Sample Assignment on Corporate Governance

Added on - 29 Apr 2020

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Running head: CORPORATE GOVERNANCE0Corporate Governanceand Social Responsibility
CORPORATE GOVERNANCE1Executive SummaryCorporate governance is guidelines and regulations that ensure that a company if fulfilling itssocial duties towards the society. The directors are responsible for effective implementationof corporate governance principles; there should be no discrimination between stakeholders’interest. Many theorists argue that shareholder primacy is more benefited for a company andfocusing of stakeholders’ interest reduces the profit-making ability of a company. But, manyexperts have denied this claim in their studies and provided that adopting a stakeholderapproach is more beneficial because it provides multiple advantages such as better brandrecognition, increased sales, easy availability of investment and positive reputation. Acompany can fulfill their social responsibility by adopting a broader view approach incorporate governance. As per the theories of justice, a company is an artificial person, and ithas several duties towards the development of society. There are multiple theories ofstakeholders’ approach that can be applied by the directors such as CSV, CSR, and circulareconomy. Below are few suggestions that directors can apply to ensure satisfaction ofstakeholders' interest efficiently:The directors should analyse the number of stakeholders in a company and evaluatetheir stake in the business.The directors should formulate policies of corporate governance to ensure that equallypreference is given to each of the stakeholders’. The directors should avoid anydiscrimination while formulating corporate policies.After effective implementation of corporate governance policies, the directors shouldcontinuously monitor the organisational environment.The directors should update the policies according to the internal or external factors inthe industry to ensure that stakeholders are satisfied by the actions of the corporation.
CORPORATE GOVERNANCE2Table of ContentsIntroduction................................................................................................................................3Purpose.......................................................................................................................................4Scope..........................................................................................................................................4Literature Review.......................................................................................................................5Advantage of Adopting and Broader View................................................................................7Justice Theories..........................................................................................................................8Theories of Corporate Governance............................................................................................9Conclusion and Recommendations..........................................................................................11References................................................................................................................................12
CORPORATE GOVERNANCE3IntroductionCorporate governance is the set of activities and regulations by which board of directorsdirect and manages the operations of a company and ensures fairness, responsibility, andtransparency in corporations while dealing with its stakeholders. The stakeholder of a firmincludes consumers, government, shareholders, investors, creditors, environment, communityand many others. Many modern organisations have adopted corporate social responsibilitypolicies to ensure the satisfaction of multiple stakeholders but, many experts believe that itreduces a corporation’s performance and growth. The stakeholder approach is based uponvarious theories of justice, ethics, and morality and it has a positive impact on the society.Many experts support the stakeholder approach by stating that company is not a profitmachine, it has several moral duties towards society and stakeholders. There are severalstakeholders’ theories that can be applied by the directors; these theories focus on fulfillingthe requirements of multiple stakeholders. This report will analyse various articles onshareholder and stakeholder approach to understand their influence and importance in acorporation’s growth. The impact of stakeholder approach over society will be discussed inthe report as well. Further, the report will evaluate multiple theories of justice and corporategovernance to understand their impact on a company.
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