Organizational Issues In Corporate Governance

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Chapter 1 Introduction and Background (680words) 1.1 Introduction Corporate governance involves the protocols through which corporations get organized, directed and controlled . Therefore, it is important for the corporations to have structures that have members of the corporate governing body that are results oriented . In addition to this, study has suggested that proper corporate governance reduces chances of organizational problems . In the light of this, the problems range from mismanagement of organizational finances, lack of transparency and accountability on the organizational resources and eventually, collapse of organizations . The perception is that the individuals who make up the membership of corporate governance…show more content…
Moreover, the corporate governance bodies have a set of responsibilities that involve practices made and fulfilled by the executive management of the organizations . These responsibilities involve general risk management, strategy formulation and ensuring proper use of organizational resources . A properly organized corporate government in an organization therefore reflects the performance of the organization . Increasingly, while providing leadership in organizations, the corporate bodies analyzes the company operations and interpret the strategies that contribute to better performance of these organizations . In these cases, the individuals in corporate governance make the plans, policies and the strategies followed by the employees of these companies . Properly set goals, strategies and plans can translate in the improvement of organizational performance . Whilst strategizing, it is clear that the performance of an organization depends entirely on the implementation of the strategies and plans set by the corporate management . Moreover, corporate governance provides internal control and assurance of organizational performance to the stakeholders who include the employees, suppliers, communities, governments and financial institutions. With evaluation of the organizational operations, the corporate…show more content…
A quality decision by management of organizations directly translates to the performance of the organizations. Moreover, an individual with these capabilities to give brilliant ideas is one who takes time to analyze and evaluate the strengths and weaknesses of the idea in mind before presenting it for argument . This needs a professionally trained individual with a clear notion of the strengths and weaknesses of an organization. 2.5. What are the factors that influence the practice of corporate governance in an

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