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Corporate Governance and Report Politics in the Oil and Gas Industry

   

Added on  2020-06-06

13 Pages4252 Words204 Views
Professional DevelopmentEnvironmental SciencePolitical Science
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Report Politics in the Oil andGas Industry
Corporate Governance and Report Politics in the Oil and Gas Industry_1

Table of ContentsINTRODUCTION...........................................................................................................................1Corporate governance......................................................................................................................1Governance structure of the company....................................................................................2Reputation management...................................................................................................................3Exemplar proactive and reactive measures used by the companies.......................................5Corporate Social Responsibility......................................................................................................6Boardroom organization and management......................................................................................7Boardroom politics.................................................................................................................8Similarities and difference between corporate governance, reputation management andcorporate social responsibility................................................................................................8Ethical matters........................................................................................................................9Behavioural challenges and potential methods to mitigate them...........................................9CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
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INTRODUCTIONThere is an importance to promote transparency and sustainability in the functioning of acompany. Cabot oil and gas company which is engaged in development, exploitation andexploration of oil and gas from united States. The report makes a comprehensive discussion oncorporate governance activities conducted ensuring ethical behaviour in the organization.Further, the report focuses on reputation management so that the brand image of the enterprisecan be enhanced in order to promote sales. In the end, the report ponders on corporate socialresponsibility activities conducted by Cabot for sustainable development.Corporate governanceCorporate governance is the set of rules, regulation and practices of the entity throughwhich it can be controlled or directed. It helps in balancing the interests of varied stakeholders,customers, management, suppliers, government, financiers and the community. It helps inproviding framework so that the objectives of the entity can be attained. It takes care of internalcontrol for performance management in the work premises. The set of rules, regulations, policiesand control involved in putting an appropriate kind of efforts in the organization helps inachieving the organizational goals (Tricker and Tricker, 2015). Every company ave their own setof rules with respect to fulfilment of stakeholders interest. It has a significant impact on thevaluation of equity holders as well. It is important for the companies to involve in monitoringactivities so that members can get involved in better decision making policies. The membersattempt to align the objectives of the company to that of the stakeholders goals. Some of thecommon principles of corporate governance board includes the following:Right and equitable treatment to the shareholders. The entity must have utmost respecttowards its shareholders and extend help to exercise the rights being owned by them(Erkens, Hung and Matos, 2012).There is an obligation towards not only the shareholders but also towards the nonshareholders, who are stakeholders. These type of stakeholders includes, investors,creditors, employees, customers, policy makers, suppliers, etc. The committee formed for the company in order to conduct corporate governance musthave adequate skills to and understanding to review and challenge the currentmanagement performance. Appropriate level of independence and commitment isextended by the committee to build some trust upon it. 1
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A certain level of understanding with respect to code of conduct followed in theorganization which helps in promoting ethical decision making and responsible handlingthe arising and prevailing issues in the organization (McCahery, Sautner and Starks,2016).The roles and responsibilities of the board and the employees must be clear so that it canbe performed appropriately. To safeguard the adopted procedure, steps must be taken toassess the integrity of financial reporting. It helps in better implementation of ethics inthe financial reporting aspects of the entity as well.The roles and responsibilities of the board must be defined clearly to the public as well sothat the stakeholders are accountable to the decision making process as well. Further,implementation of the procedures in order to verify the integrity and safeguard theintegrity of the process of financial reporting. Further, all the material fact that can affectthe financial stability of the shareholder must be disclosed to them at appropriate point oftime.The competitive company of Cabot oil is Chesapeake energy. The governance activitiesadopted by this companies are as follows:Monitoring the activities of board of directors. Review the quarterly reports which helps in analysing the performance of the companyand ascertain the benefits attached to it.It also helps in assessing the performance of the company and effective decision makingof the board.Assessment of policies, rules and regulations and ensuring that all of them are adequatelyfollowedGovernance structure of the companyCabot oil and gas company have its own corporate governance committee. The board ofdirectors of Cabot employs three to four members to constitute the Corporate Governance andNominations Committee and one of the member is designated as its chairman. Further, each ofthe member is the independent director. All the rules, regulations and statutes made by NewYork Stock Exchange Listing standards (Hermalin and Weisbach, 2012). The members of thecommittee are replaced by the board at every annual meetings. The basic responsibility of the2
Corporate Governance and Report Politics in the Oil and Gas Industry_4

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