The paper "Corporate Governance & Regulation - Enron" is a perfect example of a business case study. Corporate governance is an important and vital element of businesses in the 21st Century. Most businesses in the UK and the United States are subjected to various corporate governance rules and regulations. This is meant to ensure that firms are run and directed appropriately to deal with all issues and matters that are of urgent importance. The aim of this paper is to examine the importance and significance of effective corporate governance systems in firms. To this end, the paper will examine and review the different perspectives and views on the aims and purpose of corporate governance. Definition of Corporate GovernancePerhaps the most simple and most basic definition of corporate governance is what was put forward by the Cadbury Report and the South African King report which asserts that “ corporate governance is the system by which companies are directed and control” (Tricker 7).
This narrows the scope of the definition of corporate governance into a system or mechanism through which authority for control and governance is delegated to certain people who wield the highest and most significant authority in the organisation. “ It refers in particular to the powers, accountability and relationships of those who participate in the direction and control of a company.
Chief amongst these participants are the board of directors and management” (HIH Royal Commission 27 para 76). This definition is rather comprehensive and it links corporate governance to the authority and accountability relationships that exist in organisations. This includes the identification of the job tasks or designations that are responsible for corporate governance and this includes the board of directors and the management.
They are senior elements and parties of the company and they play a fundamental role in the affairs of organisations and entities because they direct affairs and utilise the resources of the business owners with the view of attaining the best possible results for the organisation.
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