Corporate Governance (Coursework Sample)

The Importance of Corporate Governance
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The Importance of Corporate Governance
Governance in organizations is a collection of regulations that show the relationship between stockholders, managers, and the directors of an organization, and determines the way a company operates. It focuses on matters that emanate from the segregation of ownership and management (Walker, 2009). However, corporate governance has other functions beyond just determining a correlation between shareholders and the management. Strong governance policies offer an improved access to assets and helps boost development of an organization. In addition, corporate governance has broader social and institutional perspectives.
Well-established regulations of governance should incline towards implementation of values of fairness, integrity, responsibility, and accountability for not only stakeholders, but also shareholders. For any business activity to remain efficient and ethically governed, good internal governance is paramount in addition to operating in a friendly institutional environment. Consequently, aspects like secure private asset rights, legal operations, and free press prove critical in translating corporate governance rules and policies into practice.
Similarly, corporate governance is significant because it ensures fairness and transparency in the business environment (Walker, 2009). The most imperative thing fostered by corporate governance is advocating for accountability among firms and their respective actions. On the contrary, if a company has weak corporate governance, there is a high probability of wastage of resources, mismanagement, and corruption. Besides, companies and businesses should be aware that although the idea of corporate governance emerged as a means of managing contemporary joint stock companies, it is also crucial in public firms, cooperatives, and individual businesses. Regardless of the form of business, g...