The paper "Corporate Governance in Large Corporations and Family Businesses" is a perfect example of business coursework. I agree that corporate governance is important to the success of family businesses and large corporations. It is through corporate governance that family businesses and large corporations can be in a position to improve their performance. In this context, corporate governance can be defined as the process through which the relations of corporations are taken control of and also directed. Besides, corporate governance comprises of the processes through which a given corporation sets its objectives within the framework of the regulatory, market and social environment (Enriques and Volpin, 2007).
Some of the governance mechanisms that are used by the corporations involve monitoring of policies, practices, actions and also its decisions. This paper is trying to compare and contrast the characteristics of the family business and large corporations and the benefits of corporate governance. Corporate governance in family businesses and large corporations The practices of corporate governance are usually affected by the attempts which are made in aligning the stakeholders` interests. The corporate scandals which are of different forms have sustained both public interests and also political interests in the process of regulating corporate governance.
In the business corporations which are contemporary, the major external stakeholder members include trade creditors, debt holders and the societies that are affected by the activities of the corporation. The internal stakeholders of a corporation usually comprise the executives, board of directors and other workers. The majority of the contemporary interests of corporate governance are mostly focused on mitigating the conflicts of the stakeholders` interests (Miller, et al. , 2007). In the case of the big firms, the aspect of ownership is always separated from the management and therefore the shareholders are not controlled.
Moreover, there are various ways through which conflicts of interest can be mitigated, and they include; processes, policies, customs, and laws. Besides, the most significant theme concerning governance is the extent as well as nature of corporate accountability.
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