Impact of Corporate Governance on Organisational Performance

This research explores the impact of corporate governance on the performance of an organisation, using Walmart as a case study. It examines the concept of corporate governance, its impact on Walmart's performance, and the issues related to corporate governance in the company.

Corporate Strategy and Governance

Table of Contents
INTRODUCTION...........................................................................................................................1
Overview of Research.................................................................................................................1
Background of Research.............................................................................................................1
Purpose of research.....................................................................................................................1
Research Aim..............................................................................................................................1
Research Objectives....................................................................................................................2
Research Questions.....................................................................................................................2
LITERATURE REVIEW................................................................................................................3
Corporate governance.................................................................................................................3
Impact of corporate governance on performance level of Walmart............................................3
Different issues related to corporate governance in Walmart company.....................................4
RESEARCH METHODOLOGY.....................................................................................................5
Data collection............................................................................................................................5
Gantt chart...................................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

TOPIC: Impact of corporate governance on performance of organisational performance.
INTRODUCTION
Overview of Research
Corporate governance refers to combination of processes, laws and rules through which
the businesses are regulated, controlled and operated. This encompasses external and internal
factors which impact interest of stakeholders of company consisting government regulators.
Shareholders, suppliers and others. The corporate governance gives framework for achieving
objectives of an organisation (Berger, Imbierowicz and Rauch, 2016). It deals with behaviours
under which suppliers of the finance corporations reassures to getting return on investment and
also promoting clearness, accountability and fairness.
Background of Research
The corporate governance is system through which organisations are directed as well as
controlled. It is process through which organisations are accountable and governed to owners.
This is enhancement value of long term stakeholders and also protecting stakeholders. Walmart
is multinational retail corporation that operated chain of the grocery stores, hypermarkets and
discount department stores. It is a leading retailer and famous for low cost and merchandise
breadth. Walmart company is committed to operating the business with proper integrity. It deals
with the practices of Corporate governance with regards to board committees, directors
responsibilities and compensation (Davies, 2016). These are the responsible and creative leaders
to possess the ability for risk taking to govern firm.
Purpose of research
Present research is based on Walmart through which research can gain the better
understanding about concepts. Main purpose behind conducting this investigation is to determine
the issues which Walmart faced related to the corporate governance. It develops impact on
performance level of business and on the stakeholders.
Research Aim
“To determine impact of corporate governance on performance of organisational
performance.” A study on Walmart.
1

Research Objectives
 To understand concept of the Corporate governance.
 To identify impact of the corporate governance on performance level of Walmart.
 To determine the issues related to corporate governance in Walmart company.
Research Questions
 What is corporate governance?
 What is the impact of corporate governance on performance level of Walmart?
 What are different issues related to corporate governance in Walmart company?
2

LITERATURE REVIEW
Corporate governance
As per opinion of Osmond Vitez (2020) Corporate governance is framework of practices
and rules through which board of directors assures fairness, transparency and accountability in
relationship of company with stakeholders. This is an act of guidance direction owned
enterprises toward cultural, social and economic success. It deals with way that investors assure
that they can get the fair return on investment. The corporate governance deals with identifying
the ways to take better strategic decisions. It provides the complete responsibility and authority
to Board of Directors. It assures transparency that assures balanced and strong economic
development. In relation to this, corporatise governance is views as structure and relationships
which identify corporate performance and direction (De Haan and Vlahu, 2016). It is based on
regulatory, ethical and legal environment of community. The main purpose of the corporate
governance is to monitor parties which can able to control resources owned through investors. It
continues to make improvement in corporate performance as well as accountability in developing
shareholders value for long period of time.
Impact of corporate governance on performance level of Walmart
According to opinion of Ben Geier (2019) there is a positive relationship among
performance of company and the corporate governance. The good corporate governance helps in
minimize imbalance of information among company and different stakeholders which may
enhance market value of company. Main objective of execution of corporate governance is to act
the value for stakeholders and shareholders in long run. The corporate governance mechanism
combine policies, guidelines and regulations that can compel company toward achieving
objectives and satisfying needs of stakeholders. Main type of the corporate governance applied
through Walmart is auditing. This includes reviewing of financial transactions of Walmart
company. This make sure that business operation are in the tandem with established guidelines
of national accounting. Auditing is helpful for management to collection as well as assess
information related to investors and stakeholders. The other corporate governance of Walmart is
board of directors (Hong, Li and Minor, 2016). They comprised of stakeholders which meet
criteria for the independence needed through New york stock. They are mainly responsible for
managing and reviewing overall performance of company.
3

Different issues related to corporate governance in Walmart company
On the basis of Jane Muirn (2016), Corporate governance mainly used to balance
between participants in corporate structure which have interest in manner in which company is
run like community members, executive staff and shareholders. The corporate governance
impacts directly on profit and the goodwill of form and having the poor policies which can
expose firm to fines, capital investment loss and lawsuits (Jacoby, 2018). Under this, Walmart
corporate issue is related to failure of leadership. This company has compliance system in order
to detect and respond to corruption. The issues was decisions of corporate management to
override compliance system and look other way.
4

RESEARCH METHODOLOGY
This part of research is related to collecting relevant information on particular subject
area. It uses different methods to gather information and gain positive outcomes (McCahery,
Sautnerand Starks, 2016).
Data collection
It is process of collecting and analysing information on interest of variables in systematic
manner that enable answer to research questions in an effective manner.
Primary method- Under this, researcher gather the fresh data so that authentic
information can be collected. Collected data is reliable in nature. Different sources to collecting
the reliable and authentic data from primary methods are questionnaire, observation, interviews
and many others (Lau, Lu and Liang, 2016.).
Secondary method- In this, information has been collected through using the external
sources such as books, articles, journals and some other methods. It is easier and cheap method
of collected information by using secondary method (Yermack, 2017)).
Gantt chart
5

CONCLUSION
It has been concluded from above information that there is a positive relationship among
company performance and corporate governance. The issues related to corporate governance of
performance of an organisation has been discussed here.
6

REFERENCES
Books & Journals
Berger, A. N., Imbierowicz, B. and Rauch, C., 2016. The roles of corporate governance in bank
failures during the recent financial crisis. Journal of Money, Credit and Banking. 48(4).
pp.729-770.
Davies, A., 2016. Best practice in corporate governance: Building reputation and sustainable
success. Routledge.
De Haan, J. and Vlahu, R., 2016. Corporate governance of banks: A survey. Journal of
Economic Surveys. 30(2). pp.228-277.
Hong, B., Li, Z. and Minor, D., 2016. Corporate governance and executive compensation for
corporate social responsibility. Journal of Business Ethics/ 136(1). pp.199-213.
Jacoby, S. M., 2018. The embedded corporation: Corporate governance and employment
relations in Japan and the United States. Princeton University Press.
Lau, C., Lu, Y. and Liang, Q., 2016. Corporate social responsibility in China: A corporate
governance approach. Journal of Business Ethics. 136(1). pp.73-87.
McCahery, J. A., Sautner, Z. and Starks, L. T., 2016. Behind the scenes: The corporate
governance preferences of institutional investors. The Journal of Finance. 71(6).
pp.2905-2932.
Yermack, D., 2017. Corporate governance and blockchains. Review of Finance. 21(1). pp.7-31.
Online
Geier, B., 2019. Why this Wal-Mart gun lawsuit could change everything for the company.
[Online]. Available through: <https://fortune.com/2015/03/23/wal-mart-guns/>.
Muir, J., 2016. 5 COMMON ISSUES THAT ARISE IN CORPORATE GOVERNANCE. [Online].
Available through:<https://jmuirandassociates.com/corporate-governance-issues/>.
Vitez, O., 2020. What Is the Purpose of Corporate Governance?. [Online]. Available through:
<https://bizfluent.com/about-6630366-purpose-corporate-governance-.html>.
7

8