Corporate Governance Issues - Coursework Example

The paper "Corporate Governance Issues " is a good example of business coursework. Organizations in contemporary society are faced with the need to streamline corporate behaviour and governance because they have been considered more significant with regard to the operationalization of different companies. The existence of effective corporate governance structures, allows organizations to engage in the determination of the goods or services to supply in the market (Arjoon 2014). Furthermore, effective corporate governance allows for streamlined decision-making process is streamlined in relation to the target market. Company board of directors, the management and employees are responsible for ensuring that every element of operations in agreement with the mission and objectives of their organization. Corporate behaviour is largely influenced by the prevailing culture within society and an organization. In addition, the decision of whether to incorporate rule-based or principled based approaches to governance often determines the extent to which an organization will be able to achieve its intended goals and objectives (Chetty and Saez 2007). Organizational culture as defined by corporate governance initiatives provides an outlook of the extent to which soft or hard law can be influential in the management of an organization. This is based on the realization that different organizations often require different management approaches based on their social setting, organizational and leadership culture. This often helps in the determination of organizational values and attitudes that employees and the management of an organization adapt in relation to customer expectations (Mäntysaari 2005).

The main objective of this essay is to engage in a comparative analysis of principle-based and rule-based approaches to corporate governance. This will involve and in-depth assessments of the extent to which hard of soft power should be used in matters of corporate governance. To develop a better understanding, the essay will integrate elements of corporate governance knowledge, practice and theories. In addition, tea per will also determine the most appropriate theory in understanding matters of corporate governance and behaviour.

Corporate governance

Corporate governance entails to the procedures and structures within companies that define the course and administration. Corporate governance also includes the structures and processes that describe the roles and duties of the board of directors and different levels of stakeholders (Sarbah & Xiao 2015). Effective corporate governance from an organizational perspective is a major contributor to sustainable economic development because of its ability to boost company performance. It is essential for companies to implement operative and competent corporate governance structures and processes to expedite growth. In the context of an organization, the objective of corporate governance is often to develop a setting that embraces confidence and trust among those with competing and contradictory interests (Sarbah & Xiao 2015). An additional objective of corporate governance is to enhance shareholder value while ensuring the protection of their interests through improved corporate performance and responsibility. An organization often experience effective corporate governance when operating on zero tolerance to immoralities such as corruption. This degree of corporate governance is often attained through the introduction of value management instead of well-designed codes of functioning (Arjoon 2014).

Corporate governance is essential to understanding matters related to organizational management. The definition of the conception of corporate governance necessitates the addition to the professional code of ethics, standards, transparency, responsibility and fairness (Brink 2011). This indicates that the role of corporate governance an organization is to ensure that the board of directors, being the agents of company owners are responsible for protecting resources that are apportioned to the organization. This can be through the advancement of a plan fixed to the realization of the mandate of an organization. Corporate governance also ensures that investors responsible for management are answerable to the shareholders of the organization (Hirschey et al 2009). Furthermore, effective corporate governance ensures that the board is answerable by shareholders and other stakeholders.