Corporate Governance Essay

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Corporate Governance:
Corporate Governance is the means by which company is operated and controlled. These are the rules, processes and practices by which a company is directed. Corporate governance basically is the balancing of interests of a company’s stakeholders, such as shareholders, suppliers, customers, government, financiers and the community. In today’s business world corporate governance is a centre of attention because large number of stakeholder’s wealth is at stake. Without strong corporate governance it is difficult for the business to survive.
In Pakistan corporate governance is still at a developing stage. The regulatory bodies’ mainly state bank of Pakistan and SECP are constantly engaged in developing corporate governance
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Major cause of inefficient operations in Pakistan public sector companies is government intervention in day to day operations. Also it’s very difficult to stop the intervention of government in management affairs of PSCs. Trade unions are very powerful in these organizations they oppose any changes in these…show more content…
Railways in Pakistan are routed in almost all the major cities of Pakistan. World best infrastructure of railways is given to us by British government. Few decades before Pakistan railway were considered the economical safest mode of transport. People like to travel via train because of its schedules and good facilities. Different companies and government institutions considered railway safest mode for the transportation of goods well on time. But unfortunately this department collides due to the corrupt management of railway. Government of Pakistan is involved in hiring the in eligible staff. These were the reasons due to which Pakistan railway bear heavy losses.
2. PIA :
The reason of failure of PIA is also mismanagement. PIA employed number of employees on basis of politics. They recruit people without advertisements. Even the chairman PIA and ministry of defense did not know the exact number of employees working in PIA. 23605 employees are working in PIA for only 40 planes. 590 employees are working for one plane. This is third time more then international standard. Overstaffing issue is created due to unnecessary recruitment. It is overpopulated. Due to the corrupt management airline
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