A Study on Corporate Governance Policies

May 29th, 2015
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Abilene Christian University
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Corporate governance can be both good and bad. The Securities and Exchange Commission try’s to ensure that sound corporate governance is maintained in all businesses by regulating corporations. Further business expansion is also dependent on sound corporate governance.  

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Corporate GovernanceThe term corporate governance refers to all the activities, policies, personnel, regulations and reporting which is related to the control of the companys actions. Corporate governance is done through all those individuals who have a controlling influence in a corporation such as creditors or stock holders. It focuses on reducing principal-agent problems and undermines stakeholders view in company operations.Corporate governance is at the centre of attention in todays business world. This is greatly due to the large number of stakeholders whose wealth and interests are at stake in the business. What has further highlighted corporate governance today has been the increasing influence and awareness of these stake holders. Without sound corporate governance a business cannot survive.Corporate governance is not just related to core business activities. Good corporate governance caters to various other issues present in the society. Corporations today have developed a concept of corporate social responsibility. The major components of corporate governance comprise of company policies, Board of Directors, the role of the CEO, creditors, Stockholders, regulators, reporting and maintaining overall transparency about the business operations.Corporate governance can be both good and bad. The Securities and Exchange Commission trys to ensure that sound corporate governance is maintained in all businesses by regulating corporations. Further busines

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