Corporate Governance and Weakness in Corporate Governance: Analysis of a Case Scenario

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TABLE OF CONTENTS
Introduction................................................................................................................................3
Analysis of case scenario...........................................................................................................3
Corporate governance and effective corporate governance under different theories.............3
Corporate governance........................................................................................................3
Effective corporate governance under different theories...................................................3
Analysis of situation faced by company and weakness of in their corporate governance.....5
Analysis of situation of company.......................................................................................5
Weakness in corporate governance of company................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

INTRODUCTION
It is important for the present business to concentrate on the various essential factors apart
from profit like society, government laws, and institutional context for their business
procedures. Business administration is continuously developing and improving, and such
enhancement in business is done by both internal as well as external organization dynamics.
By considering this aspect, the present study is based on the analysis of the situation of
Joshua by considering the corporate governance of the company.
ANALYSIS OF CASE SCENARIO
Corporate governance and effective corporate governance under different theories
Corporate governance
Corporate Governance refers to the method by which businesses are authorised for the
conduct of operational activities. Corporate Governance recognizes the power and
responsibility of the person, and whoever makes decisions (Boubaker and Nguyen, 2014). It
is the vital authority that facilitates management, and the helps the board to work more
efficiently and meet the challenges for the organization of a company. Corporate Governance
makes sure that that company has a suitable decision-making procedure and controls for
balancing the interests of all stakeholders (shareholders, suppliers, employees, community
and the customers).
Supremacy at a corporate level applies the procedure so that company can set its objectives
and moreover that should be followed for the purpose of the social, regulatory and market
environment (Dixon and Frolova, 2013). Governance is concerned about the performance and
actions for assuring that a company is developing and growing effectively and however, with
that achieves its predefined goals. Although, it is important to assure that shareholders have s
belief and trust in the policies and management of the organisation.
Effective corporate governance under different theories
Agency theories
Agency theories occur from the differences among the proprietor (shareholders) of a
corporation or an association chosen as "the principals" and the management hired to direct