ACCT 602 - Corporate Governance: Issues & Challenges in 2018

This essay delves into the critical corporate governance issues facing modern businesses. It highlights the importance of disclosure, transparency, and accountability in maintaining corporate integrity. The paper addresses the challenge of assembling effective corporate boards, emphasizing the need for value-based leadership and a blend of executive and non-executive directors. Furthermore, it explores risk management strategies, the social and ethical responsibilities of corporations, and the growing importance of privacy and data protection in the face of cyber threats. The essay concludes by underscoring the ongoing need for analysis and improvement in corporate governance practices to ensure the survival and success of industries, with references to various academic sources.

CORPORATE
GOVERNANCE ISSUES

Introduction
 Everyday challenges present the corporate
world with a struggle that requires an
accurate understanding and advancement
in a manner that reflects the trends and
emerging issues of the various industries.
 In examining these contemporary arrays
of fact as far as corporate governance is
concerned, this paper discusses the real
issues of corporate governance with an
aim of unearthing the current trends in the
same

The corporate accountability
issues

 Among the best aspects of corporate
governance that have become issues in
the latest contemporary corporate
management are the disclosure,
transparency and accountability.
 These three issues are tied in the overall
corporate governance and manoeuvre
(Tricker and Tricker, 2015).
 The first step of accountability is during
the disclosure stage whereby timely and
accurate information disclosed to the
stakeholders or shareholders are critical.

 Some of these disclosures include financial
positions, performance among others
(Epstein, 2018).
 Through transparency, faith and confidence in
the governance are instilled among the
corporate bodies and used for various
advantages of goodwill.
 Through transparencies in disclosures and
operations, there is high accountability, and
tremendous competition in the industry can
be well managed.

 Getting the right Board
 In every field of governance, getting the right
players is always the most significant challenge,
but also the most effective way of enhancing
sound corporate governance in the contemporary
corporate world.
 Value-based corporate board with interest on the
corporate culture will effectively perform its
mandate because of ethics, value, and culture.
These three will ensure that the corporation is run
under the right ethics, religion, and principles.
 Therefore, the value-based corporate board is
suitable for good practices for corporate
governance (Cuomo Mallin and Zattoni, 2016).

 The role of the board is the cornerstone of
this good governance. Through the law, an
excellent corporate board should have a
compelling blend of executive and non-
executive directors.
 However, one of the significant challenges
in the corporate boards of the present-day
corporations lies in ingraining governance in
the corporate cultures that are working
towards the wave of compliance
improvement (Lebedeva, Akhmetshin,
Dzagoyeva, Kobersy and Ikoev, 2016).

 The corporate sector is usually
invaded by some risks that are real-
time.
 Some of these real-time risks are the
constant media reflections on the
affairs or businesses of a particular
corporation.
 Much of the risk management
decision making is left to the board
and the senior-most management.
Management of Risk

 The policies and practices of the
risk management are implemented
by the workers, the stakeholders,
the subordinated, the
administration, and the senior
management.
 Therefore, it is prudent to note that
the independent directors are
mandated to assess the risk
management systems of the
company

 The social and ethical corporate
responsibility
 The relationship between the corporate
world and the society has been one of
the leading organisational issues.
 Through the board of directors and the
management, a corporation has a
responsibility to the community it
serves, which is extended to the world.

 The ethical duties to make decisions that
are based on the interest of the
corporate stakeholders and to protect
the social welfare of others is critical
(Müller, Turner, and Andersen, 2016).
 Some of the factors embedded in this
involve pollution minimisation.
 Some of the corporate failures have
originated from this issue of social and
ethical responsibilities (Desai, 2017).

Privacy and Data Protection
 In the face of increasing technological
advancements, most corporate entities are
faced by the constant cyber-attacks and crimes
targeting their privacies and secrets.
 Also part of risk management, privacy and data
protection is among the leading issues of
corporate governance.
 The digitisation of almost every corporate
operation requires a sober understanding of the
fundamentals of cyber security must be
expected from every director.

 Proper management will be only achieved if
executives can engage and understand the
specialists in their firm.
 The board must assess the potential risk of
handling data and take steps to ensure such data
is protected from possible misuse
(Giannakopoulou, Thalassinos, and
Stamatopoulos, 2016).
 It is also within the mandate of the management
or the board to have a reasonable investment of
resources, money and time so that the corporate
data is protected from the scrupulous attackers
and manipulations.

 There are many issues affecting the
corporate governance, like the executive
compensation, accountability of
stakeholders, innovation, independence of
the director, among others discussed, there
is a standing fact that corporate governance
is very critical for the survival of industries.
 It is within the perspective that this study
finds it prudent for continual analysis into
the hardcore issues of corporate governance
in the global world.
Conclusion

 References
 Cuomo, F., Mallin, C. and Zattoni, A., 2016. Corporate
governance codes: A review and research agenda. Corporate
governance: an international investigation, 24(3), pp.222-241.
 Davies, A., 2016. Best practice in corporate governance:
Building reputation and sustainable success. Routledge.
 Desai, P., 2017. A study of corporate governance and
corporate social responsibility practices in selected health
care organisations Issues and challenges.
 Epstein, M.J., 2018. Making sustainability work: Best practices
in managing and measuring corporate social, environmental
and economic impacts. Routledge.
 Foroughi, P., Marcus, A.J., Nguyen, V. and Tehranian, H., 2016.
Peer effects in corporate governance practices: Evidence from
universal demand laws.
 Giannakopoulou, E.N., Thalassinos, E.I. and Stamatopoulos,
T.V., 2016. Corporate governance in shipping: An overview.
Maritime Policy & Management, 43(1), pp.19-38.

 Lebedeva, T.E., Akhmetshin, E.M.,
Dzagoyeva, M.R., Kobersy, I.S. and Ikoev,
S.K., 2016. Corporate governance issues and
control in conditions of unstable capital risk.
International Journal of Economics and
Financial Issues, 6(1S), pp.25-32.
 Müller, R., Turner, J.R., Andersen, E.S., Shao,
J. and Kvalnes, Ø., 2016. Governance and
ethics in temporary organisations: the
mediating role of corporate governance.
Project Management Journal, 47(6), pp.7-23.
 Tricker, R.B. and Tricker, R.I., 2015.
Corporate Governance: Principles, policies,
and practices. Oxford University Press, USA.