The success of a company is not only dependent on its performance, but also, corporate governance. In fact, corporate governance is equally as essential as performance. Companies with effective corporate governance structures achieve higher valuations, by improving the image (goodwill) of the company and thus attracting potential investors to the company and effectively satisfying the current
Additionally, it benefits the business in terms of creating awareness among its stakeholders, expanding their scale of operations by gaining trust and certainty. Corporate Social Responsibility is proven to be a competitive advantage as it is able to change consumer or customer preferences towards a businesses which practices it. 2.1 Ethical Theories Under Ethical Theories there are a few approaches focus on the ethical requirements that solid the relationship between business and society. The core of the three approaches below which introduces is based on the concept of the right things to do or the essential to enhance social welfare. 2.1.1 Universal rights The Universal Declaration of Human Rights (UDHR) commonly known as Human rights is a declaration adopted by the United Nation Assembly
Equity holders are the residual claimants, bearing most of the risk and have greater control over decisions. An appropriate capital structure is a critical decision for any business organization. The decision is important not only because of the need to maximize returns to various organizational constituencies, but also because of the impact such a decision have on an organization’s ability to deal with its competitive environment. Following the work of Modigliani and Miller (1958 and 1963), much research has been carried out in corporate finance to determine the influence of a firm’s choice of capital structure on performance. The difficulty facing companies when structuring their finance is to determine its impact on performance, as the performance of the business is crucial to the value of the firm and consequently, its
Lin and Chen (2006) in their studies found that brand image plays a pivotal role in deciding customers’ preference of purchase and recommendation. When brand image is positive or favorable then consumers will perceive a congruent corporate reputation and then increase the likelihood of maintaining their positive attitudes and behaviors. Schultz (2005) also found that loyal consumers more prefer to recommend a specific brand to other people and less likely influenced by competitors. Without a favorable and strong brand image, businesses cannot obtain a greater percentage of the market share, thus corporations always keep observing their branding strategies and practices (Schultz, 2005). According to Wu (2011), brand image has been acknowledged as a significant
INTRODUCTION Ethics and professionalism are the distinctive differentiation between a good business and a great business. It can create a great competitive advantage and a firm and loyal customer basis which is the obvious objective for all entities. Understanding and acknowledging these concepts can lead to a successful and profitable organization. Professionalism however is the way in which people act or behave when taking part in a particular job. Professional codes are put in place to ensure that employees within the business are acting and behaving in a particular manner.
The benefits will strengthen the credibility of company. If the managers reject to purchase expensive gift, the manager will not get the contract. This will cause the employees may lose the jobs. By contrast, if the manager gets the contract successfully, the profit earn from the contract have to divide equally among the stakeholders and the company. Besides, the manager purchases expensive gift will increase the expenses of the company but at the same time, it will earn more profit which is helpful to company.
Name Rizki Malinda Isvaniari Putri Title of the project Interdependence Mechanisms of Corporate Governance Effect in Multinational State-Owned Enterprises 1. Introduction The state sectors have always been an important component of most economies. Recently, several state-owned enterprises (SOEs) are among the largest and fastest expanding multinational companies. They progressively compete with private firms for resources, ideas, and consumers in both domestic and international markets. Many countries manage SOEs where monopolies are treated desirable or natural.
It affects company’s reputation and help defines business model that will thrive even in adversity. Introduction Corporate governance has become a phenomenon in today’s business world. With greater technology and the rise of social media, investors and the general public are increasingly monitoring and demanding for better
The emphasis is on strategies and accounting information. This has indeed shown recurrent importances of management accountings in the NPM discourse. Generally, its nature, role and relevance stems from neoclassical economics of a state. This NPM discourse is retrospective, and its effects are on the basis the past. Objectives of public reforms enhance focus on the service quality.
It reflects every faucet of the corporation; the range and nature of the products offer, pricing, quality of service, market place position, growth potential, use of technology, and relationships with customers, employees, suppliers, competitors, and the community. An advantage of having a mission statement in connection with the corporation’s goals and objectives is it can be beneficial to a corporation by acting as a form of advertisement. It establishes a business’s underlying purpose beyond the simple goal of making a profit therefore meeting the corporation’s goals and objective. Corporate Policy is another strategy for a corporation. By establishing corporate policy will help employees to clearly understand their roles and responsibilities within predefined limits.