The paper "Corporate Governance and Regulations - Joint Stock Corporation " is a perfect example of a business case study. The corporation of today plays a critical role in the institution of highly developed free enterprise. The Joint Stock Corporation first came into life in the 20th century and Karl Marx who witnessed it saw it as a possibility towards the communal ownership of the means of production and as a way that would eventually lead to socialism. Corporations have been around for some time now and there seems to be no sooner end to them.
As early as the mid-2000s, the World Federation of Stock exchanges said witnessed the registration of over 400, 000 corporations in the stock market across the world, and increase of about 30 percent from 1997 (WFE 2008). Today, the structure of the joint-stock company is such that it has led to a series of industrial developments that saw the Economist in the year 2006 attribute the failure of the Arab countries region’ s failure to develop to the failure in instituting joint-stock corporations. The current corporations, and specifically the Multinationals or international corporations some that are larger than some of the state economies of some countries in the world, have grown to the point where they have taken up the global political economy which in many cases has been a representation of a possible challenge to the conventional structures of the political structures, especially with regard to political considerations within the “ state-nation” framework (Barca & Becht 2001).
There is no doubt that corporations will continue being in existence as a means through which people and capital can be organized for as long as the need to regulate ups and downs in the global financial systems such as the recent financial crisis shall last. The question of who controls the modern corporation, how it is governed as well as the reason that is behind the need for regulation has become a very critical factor when it comes to the organization of production in the current market economy which is largely industrialist, and corporate governance is today some of the most critical factors in business and organizational circles. When the Enron and Worldcom scandals emerged, many people took it as a sign of greediness in the free enterprise in the US alone but other cases such as Ahold and Parmalat have led to the questioning of the answerability of those behind management in corporations and especially with regard to the protection of investors as well as personnel.
The public in many western countries has risen up in the recent past to specifically question the remuneration of executives which is said to ever be on the rise, the large profits despite the challenging economic environment within which corporations have been operating in the recent past even in the midst of employee layoffs (Becht et al 2006).
All these factors have led to a heated discussion related to social impartiality and equality. As the numbers of mergers and acquisitions increase further, with higher levels being observed in the US, many industries are increasingly becoming strategic economic sectors requiring that they should be protected against invasion by foreigners. This paper talks about the control of corporations, largely known as corporate governance in the midst of regulatory frameworks.
List of References
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