A Study on Corporate Governance Policies

May 29th, 2015
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Abilene Christian University
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Corporate governance is….  A means whereby society can be sure that large corporations are well-run institutions to which investors and lenders can confidently commit their funds.  Is a term that refers broadly to the rules, processes, or laws by which businesses are operated, regulated, and controlled. The term can refer to internal factors defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as customer groups, clients and government regulations.

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1. IntroductionCorporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. The principal stakeholders are the shareholders, management, and the board of directors. Other stakeholders include employees, customers, creditors, suppliers, regulators, and the community at large.Although the idea of corporate governance has received wide attention, there are considerable variations in the conceptual definition, even resulting in inconsistencies in the usages of the term in its narrow sense; the term may describe the formal system of accountability of senior management to the shareholders. At its most expensive , the term stretched to include the enter network of formal and informal relations involving the cooperate sector and there consequence for their society in general corporate governance as generally understood includes the structure process, culture and system that engaged the successful operations of the organization.Corporate governance is a multi-faceted subject. An important theme of corporate governance is to ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-agent problem. A related but separate thread of discussions focuses on the

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