The Influence of Corporate Governance on Company Business Outcomes

This report delves into the significant impact of corporate governance on a company's business operations and outcomes. It explores corporate governance as a framework of processes and relationships that direct and control a company, encompassing ethical considerations and financial performance. The report examines the varying nature of corporate governance between public and private companies, emphasizing its role in making financial progress and increasing business efficacy. It also discusses the relationship between business ethics and corporate governance, highlighting the importance of values like accountability and transparency. Furthermore, the report analyzes the impact of corporate governance on profit, reputation, and the creation of a transparent and responsible corporate culture, concluding that robust corporate governance is essential for business success and recommends its strict implementation.

Running head: IMPACT OF CORPORATE GOVERNANCE IN BUSINESS
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IMPACT OF CORPORATE GOVERNANCE IN BUSINESS
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1IMPACT OF CORPORATE GOVERNANCE IN BUSINESS
Table of Contents
Introduction..........................................................................................................................3
Discussion............................................................................................................................3
Literature review..............................................................................................................3
Business ethics and corporate governance......................................................................4
Business ethics.............................................................................................................4
Dealing with business ethics in corporate governance................................................4
Profit of business and corporate governance...................................................................5
Impact of such corporate governance in the company’s business...................................5
Conclusion...........................................................................................................................6
Recommendation.................................................................................................................6
References............................................................................................................................8

2IMPACT OF CORPORATE GOVERNANCE IN BUSINESS
Executive summary
Corporate governance is a mechanism or process in a company, which the company should have
to follow in its operations. It has a significant impact or importance in the business of the
company as it has possessed a positive aspect to control such commerce. This corporate
governance may have differed from a company to another company. This paper has
demonstrated the relationship between the businesses of a company with corporate governance.

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Introduction
The term corporate governance is a gathering of procedures, mechanisms, as well as a
relation through which any company has been functioned and controlled (Tricker, & Tricker,
2015). It has included such procedures by which the business objectives of a company in such a
context of regulatory, social, as well as market value. In this research, the question has arisen
whether there is any significance or importance of this corporate governance in the business of
any company. This paper aims to analyze the commercial impact of such corporate governance
in a company.
Discussion
Literature review
Corporate governance of a company helps to attempt for making profits, as well as
ethical considerations for the business of that company. This corporate governance has been
varied from company to company (Shamsabadi, Min, & Chung, 2016). Such governance of a
public company may be differed from a private company. Private companies do not consist of
any mandatory fiduciary obligations for maximizing shareholders' revenue and may allow them
potentially less flexibility and at the time of making any business decision. However, in the
public company, the shareholders of that company can get the flexibility to attain any significant
decision for the business of that company. It is one of the different between such corporate
governance and commercial ethics of the company.
Such measurement of corporate governance of any company has been motivated through
a sense of making financial progress, as well as increasing the efficacy of corporate business

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(Yarram, & Dollery, 2015). Such good corporate governance can be described as an official
system of control and accountability of socially and ethically responsible assessments, as well as
the use of any resource for the betterment of the business of that company.
Business ethics and corporate governance
Business ethics
Business ethics is a presentation of ethical or moral principles and norms in the business
(Hussain, Rigoni, & Orij, 2018). It has comprised the standards and principles, which have
directed the behavior in the manner of business and balanced the desire of the company to make
the maximum profits with the benefit of the stakeholders, as well as shareholders. These ethics
have recognized any link between financial performance and business ethics.
Dealing with business ethics in corporate governance
The business ethics of a corporate sector has a direct link with such corporate governance
of a company. Coating the slope of standards in the corporate sector, which should be observed
in any good governance of it, are such values of accountability, transparency, probability and
responsibility (Balachandran, & Faff, 2015). These standards or principles should pervade all
phases of such corporate governance, as well as it must be demonstrated in all movements and
decisions or pronouncements of the company’s board of directors. Moreover, these fundamental
or essential values and principles of such corporate governance of a company, which has
mentioned above is also prepared some particular moral responsibilities that the company, as
well as its board of directors, are to abide by. Such corporate governance has made a stable
condition of the business of that company (Christensen et al., 2015). The business ethics should
be comprised of the amalgamation of this corporate governance. It can able to reduce the
corruption of a company. The board of directors of any company can able to produce their

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corporate governance to show that there is no such corruption in their company’s business. It is
an integral part of such corporate governance in a company that this company will not do any
illegal or unethical business transactions, which is opposed to the legal policies in the territory of
Australia.
Profit of business and corporate governance
Significant corporate governance of a company is a key factor in the growth of the
reputation, as well as the profits of the company. It has represented the good relationship and
affiliations among the shareholders or stakeholders, which has used for controlling and
determining the presentation and direction of the company (Yarram, 2015). Corporate
governance has consist of accountability, and it has made for the betterment of the company. If
any company has strictly followed such corporate governance, then it will be helpful to earn
more profit in its business. Basically, such makers of corporate governance should keep in mind
the best progress of the business of that company. The profit in a business is one of the main
objectives of that business, and all the business ethics should be made in an accumulation of
these objects. Therefore, it can be stated that the profit of a business is one of the essential and
indirect fruits of such corporate governance.
Impact of such corporate governance in the company’s business
Corporate governance has been needed for creating a corporate culture of transparency,
consciousness, as well as openness and good perception. It has enabled the company for
maximizing the long-term principles or values of that company. These principles have been seen
in the standings of the performance of the company (Shamsabadi, Min, & Chung, 2016). The
managers, directors, auditors, shareholders, and the other employees, that is, who are
stakeholders in any company have been clearly defined their obligations or responsibilities in

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such corporate governance. An adoption of corporate governance in the management of a
company has enhanced the managerial and supervisory capacity of that company or organization.
There are several places where such corporate governance has helped to an extent, as well as
influence the business. Corporate governance has referred to the outcome of the company and
the presentation of the board of directors (Miglani, Ahmed, & Henry, 2015). It has increased a
good and understanding relationship between administrative management and the board.
Corporate governance has elaborated on the assessment and nomination of the board of directors.
It has also concerned about the board of membership, as well as responsibilities. It has also
concerned with such corporate compliance, internal controls, and risk management, which are
essential for the business of a company.
Conclusion
Therefore, it can be concluded in this paper that there is a substantial impact on corporate
governance in the commerce of a company. Corporate governance of a company helps to attempt
for making profits, as well as ethical considerations for the business of that company. Significant
corporate governance of a company is a crucial factor in the growth of the reputation, as well as
the profits of the company. Such measurement of corporate governance of a company has been
motivated through a sense of making financial progress, as well as increasing the efficacy of
corporate business.
Recommendation
It can be recommended in the context that good corporate governance has to be enacted
or taken into granted for progress in business in the company. As it has understood from the

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above discussion that corporate governance has abled to make significant development in the
business of the company. Therefore, it can be made as a recommendation to do business in a
better way; the company should create strict corporate governance.

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References
Balachandran, B., & Faff, R. (2015). Corporate governance, firm value and risk: Past, present,
and future. Pacific-Basin Finance Journal, 35, 1-12.
Christensen, J., Kent, P., Routledge, J., & Stewart, J. (2015). Do corporate governance
recommendations improve the performance and accountability of small listed
companies?. Accounting & Finance, 55(1), 133-164.
Hussain, N., Rigoni, U., & Orij, R. P. (2018). Corporate governance and sustainability
performance: Analysis of triple bottom line performance. Journal of Business
Ethics, 149(2), 411-432.
Miglani, S., Ahmed, K., & Henry, D. (2015). Voluntary corporate governance structure and
financial distress: Evidence from Australia. Journal of Contemporary Accounting &
Economics, 11(1), 18-30.
Shamsabadi, H. A., Min, B. S., & Chung, R. (2016). Corporate governance and dividend
strategy: lessons from Australia. International Journal of Managerial Finance.
Tricker, R. B., & Tricker, R. I. (2015). Corporate governance: Principles, policies, and
practices. Oxford University Press.
Yarram, S. R. (2015). Corporate governance ratings and the dividend payout decisions of
Australian corporate firms. International Journal of Managerial Finance.
Yarram, S. R., & Dollery, B. (2015). Corporate governance and financial policies. Managerial
Finance.