It makes the different forms of a corporate culture to comprehence, understand and cooperate, in order to generate more positive effect and managing the company more effectively. To successfully manage that, I have three points. First, establish the right concept of cross-cultural management. Specifically, it is about admitting and understanding the objective existence of cultural differences, respect other cultures. In addition to that, one should see culture differences as an opportunity and advantage instead of threat and disadvantage.
Corporate governance became a determinant to many subjects in identifying company’s strengths and functions. One of the most important functions that corporate governance can play is in ensuring the quality of the financial reporting process (Cohen et al.,
Corporate Governance as stated in the statement above, function as agents of shareholders, within the corporate governance ecosystem. Shareholders who exercise their rights as shareholders, directly influenced the boards, can ensure responsible actions by companies. Gatekeepers and influencers, insinuated between the shareholders and company, play an important role in promoting self and market discipline, hence in reducing the need for regulatory discipline. Last but not least, private and public enforcement have an important role in ensuring that corporate governance are held accountable through actions by the regulators parties. Proactive actions by the various parties is crucial and this reinforces the corporate governance culture and ultimately
What is corporate compliance? Compliance - The word compliance is defined as the act of adhering to or conforming to a law, rule, demand, or request. In a business environment, conforming to the laws, regulations, rules and policies is a very important part of business operations often referred to as "corporate compliance." Corporate compliance involves keeping a watchful eye on a fast-changing legal and regulatory climate, and making the changes necessary for the business to continue operating in good standing within its industry, community, and customer base. In a broader sense, corporate compliance extends beyond mere legal and regulatory conformity into the realm of promoting organizational ethics and corporate integrity.
This also evident from above discussion that ethical leadership is also crucial in developing the ethical culture within an organization. The employee performance can also incredibly increased by ethical and moral behavior in a workplace that practice good ethics. Finally, the overall performance of an organization in term of its financial outcomes is also benefited from the ethic practice. The case study of L’Oreal also provides a good example of all
Good governance facilitates efficient, effective and entrepreneurial management that can deliver stakeholders value over the longer term. It is about commitment to values and ethical business conduct. It is a set of laws, regulations, processes and customs affecting the way a company is directed, administrated, controlled or managed. Good corporate governance underpins the success and integrity of the organizations, institutions and markets. It is one of the essential pillar for building efficient and sustainable environment.
These principles are to help the business in being sustainable and dealing better with any risks that may be taken. Corporate governance benefits the company and the stakeholders that are directly or indirectly involved in the business. 2. THE BARCLAYS LIBOR RIGGING
Corporate governance refers to the way through which society can ensure that large corporations are well-run institutions to which investors and lenders can confidently commit their funds. It creates safeguards against corruption and mismanagement of the board and provides sincere commitment in creating and sustaining an ethical business culture in public and private sectors. Corporate governance policies, norms,
Being one of the effective mechanisms in corporate governance, ownership structure enables efficient functions of a firm and directly or indirectly influences firm performance for long term. While developing corporate governance model of a firm, ownership structure plays vital role. The ownership concentration has its benefits in the corporation structure, since huge range of shareholdings permits monitoring of managers in better way that eventually leads enhanced performance (Jensen & Meckling 1976). On the other hand, the conflicts of interest between owners and managers can be significantly minimized if there is no separation between ownership and control. This as a result optimizes the shareholders’ value (Morck, Shleifer & Vishny 1988).
IMPORTANCE AND BENEFITS OF CORPORTAE SOCIAL RESPONSIBILITY: Some of the benefits are provided below: a) Risk management: Engagement in corporate social responsibility activities helps the companies manage emerging social risks which may emerge as an offshoot of their operational activities. As a result the companies get a social license to operate, which helps maintain a positive image in the market and winning the confidence of people. b) Strengthened Brand Positioning: Through corporate social responsibility, companies can positively influence the perception of the people. Thus strengthening the brand image in the eyes of the consumers, community, regulators, employees and the suppliers. c) Increased sales and Market share: Consumers like to be associated with a company, which is ethical and has a positive image.