Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Analyze corporate governance
Essays on corporate governance
Essays on corporate governance
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Analyze corporate governance
Corporate governance receives close scrutiny from private, institutional investors and competing firms. The structures and process associated with decision-making, controls, accountability, monitoring and production activities of organizational agents behaving in the best interest of shareholders and stakeholders, is the framework for corporate governance. The quality of the firm’s corporate governance affects multiple layers within operations, finance and value. The poorer quality of corporate governance firm carries will lead to depressed value and low efficiency.
Looking at Colliers International Group Inc., the board of directors has established the committees dedicated to ensuring the execution of its’ corporate governance objectives. These committees are as follows: Audit & Risk Committee, Executive Compensation Committee, and Nominating & Corporate Governance
…show more content…
The work of the committee is to review the activity of the internal and external audits that prepare and audit the company’s financial statements, respectively. As internal audits add value to providing effective oversight of the control environment, the presence of external audit compliance signals that management and the board supports strong and effective risk management and corporate governance alliance. The financial statements are audited by PricewaterhouseCoopers LLP, as stated in Collier’s 2015 Annual Report (10-K), “Our responsibility is to express an opinion on these consolidated financial statements and an opinion on the company’s internal control over financial reporting based on our integrated audits”. In addition, the Audit and Risk Committee reviews Collier’s insurance policies and offers an opinion on risk exposure and potential areas of concern related to strategic, compliance, operational and finance
The Audit Committee is comprised of the following five members from the Board; F. Duane Ackerman, Ari Bousbib, J. Frank Brown, Karen L. Katen, and Mark Vadon. This group is tasked with assisting the Board with the oversight of The Home Depot’s financial statements, ensuring that they are in compliance with legal and regulatory requirements. They also review and monitor the Company’s Compliance program, making changes when appropriate to ensure that the Company remains compliant. This committee must be comprised of three or more independent directors from the Board and they cannot receive any compensation other than directors’ fees from Home Depot. A requirement for this committee is to have a basic understanding of finance and accounting principles and practices. At least one member must be an “audit committee financial expert.” Mr. Brown acts as the audit committee financial expert. The members of this committee all have knowledge in basic accounting and finance principles and also bring in a variety of knowledge in different areas.
Corporate Governance Bega Cheese Limited issues a Corporate Governance Statement that outlines the measures put into place to ensure organisational integrity and transparency of data in the financial statements that are published in the annual report. It would appear that Bega is exerting extreme effort to ensure that the risk of misstatements is minimised. In effect, is by assigning risk management and oversight responsibility to specific groups/personnel within the organisation using a systematic approach. The board is held accountable for assessing, approving and checking the Group’s risk management systems, assessment of the adequacy of the internal compliance, policies and procedures and control mechanisms. Furthermore, the board also approves and monitors major capital expenditure, budgets, financial and other reporting.
This report gives the brief overview of the concept of corporate governance, its evolution and its significance in the corporate sector. The report highlights various key issues and concerns that are faced by the organizations while effectively implementing and promoting Corporate Governance.
How migration is changing our world? This question alone is ambiguous in nature and can be analyzed in multiple ways. Migration has become a dominating issue in world politics as well as domestic politics. The intensity of the issue has developed throughout history, and its reign in societies has caused many people to self-diagnose the benefits and downsides of migration without truly understanding the complex nature of migration, people, and interaction with one another. Now a days everyone is a self-made critic with a stake in who gets to migrate to what country and how this process should be conducted.
Previous academic studies confirmed a statistically significant positive relationship between corporate governance mechanisms, CSR and company performance (Harjoto & Jo, 2011; Neubaum & Zahra, 2006; Johnson & Greening, 1999; Stuebs & Sum, 2015). Therefore, Johnson & Greening (1999) concluded that corporate governance mechanisms affect the relationship between CSR and company performance and that these mechanisms are crucial to incorporate. Based on previous literature, board structure, managerial incentives, antitakeover measures and ownership structure can be determined as the main components of corporate governance (Gillan, 2006; Bhagat & Bolton, 2008). Nevertheless, Hess (2007) argued that the term corporate governance is expanding and that the term no longer includes only the traditional components such as managerial compensation, board structure and antitakeover devises. The author concluded that non-financial criteria, such as sustainability and CSR are also incorporated in the term corporate governance nowadays (Hess, 2007). Through CSR and sustainability, companies are more long-term focused, reduce risk and improve shareholder value creation (Hess, 2007).
Bibliography: Turnbull, S. (1997). Corporate governance: its scope, concerns and theories. Corporate Governance: An International Review, 5 (4), pp. 180--205.
In today’s business environment, a good corporate governance will be effective in stopping more financial scandals and collapses in future (Mallin, 2013) and protecting the reputation of both the company directors and the firms (Turnbull, 2000). Besides, it will also add value by improving firm’s performance and improvement on other efficiency. Contrarily, a poor corporate governance can affect the functioning of a country’s financial markets and the volume of cross-border financing (Claessens and Yurtoglu, 2012).
The oversight responsibilities of the board, the CAE lacking of expertise or broad understanding of financial controls and responsibilities, and the understaffed internal audit functions lacking of independence and direct access to the board of directors contributed to the absence of internal controls. To begin with, the board should be retrained to achieve financial literacy to review financial reporting. Other than attending formal meetings, the board of directors should be more involved with the management. For the Audit Committee, the two members who were recruited as acquaintances to Brennahan need be replaced with experts who are more sufficiently knowledgeable about accounting rules beyond merely “financially literate”. Furthermore, the internal audit functions need to expand with different expertise commensurate with the expanded activities of the organization, testing financial reporting rather than internal controls from an operational perspective. The CAE should be more independent and proactive to execute audit plans, instead of following orders from the CFO, and initiate a direct and efficient communication between internal audit and audit
Tsui, J., & Gul, F. A. (2002). Consultancy on a Survey on the Corporate Governance Regimes in Other Jurisdictions in Connection with the Corporate Governance Review. Hong Kong: CityU Professional Services Ltd.
Nottingham Trent University. (2013). Lecture 1 - An Introduction to Corporate Governance. Available: https://now.ntu.ac.uk/d2l/le/content/248250/viewContent/1053845/View. Last accessed 16th Dec 2013.
The fundamental duty of an external financial auditor is to form and express an opinion on whether the reporting entity’s financial statements are prepared in accordance with the relevant financial reporting framework. In discharging this duty, the auditor must exercise “reasonable skill, care and caution” (Lopes, J. in Kingston Cotton Mill Co 1896) as reflected in current legal and professional requirements.
1. Corporate Law for Ontario Business (2012). Farah Jamal Karmali 2. Business Dictionary (2010). http://www.businessdictionary.com/definition/separate-legal-entity.html
The office of the Director of Corporate Enforcement (ODCE, 2015), Ireland defines Corporate Governance as “the system, principles and process by which organisations are directed and controlled. The principles underlying corporate governance are based on conducting the business with integrity and fairness, being transparent with regard to all transactions, making all the necessary disclosures and decisions and complying with all the laws of the land”. It is the system for protecting and advancing the shareholder’s interest by setting strategic direction for the firm and achieving them by electing and monitoring the capable management (Solomon, 2010). It is the process of protecting the stakes of various parties that have their interest attached with a company (Fernando, 2009). Corporate governance is the procedure through which the management of the company is achieving the goals of various stake holders (Becht, Macro, Patrick and Alisa,
Corporate governance is the set of guidelines that determines the control and organization of a particular company. The company’s board of directors is in charge of approving and reviewing changes to this set of formally established guidelines. Companies have to keep in mind the interests of multiple stakeholders, parties who have an interest in the company. Some of these stakeholders include customers, shareholders, management, and suppliers. Corporate governance’s focus is concentrated on the rights and obligations of three stakeholder groups in particular: the board of directors, management, and shareholders. Corporate governance determines how power is split between these three stakeholders. A company’s board of directors is the main stakeholder that influences the corporate governance of a company (Corporate Governance).
Corporate governance is the policies, rules and regulations, by which a corporation shapes the way corporate officers, managers, and stakeholders perform their duties to create wealth for the entity. According to Lipman (2006), good corporate governance helps to prevent corporate scandals, fraud, and potential civil and criminal liability of the organization (p. 3). Most companies, whether formal or informal, have some type of corporate governance for the management to follow. Large companies will have a formal set of rules and regulations, while small companies frequently have spoken rules often due to lack time to form any type of formal policies. There is often no corporate governance with family owned companies.