Annotated Bibliography On Corporate Governance - 1268 Words

Chapter 1: Introduction to Corporate Governance â€Å"While corporate governance may not dictate the economic prospects of developing countries, it certainly plays an integral role in shaping them.† The word Governance is derived from ‘gubernate’, meaning to steer. Corporate governance would mean to steer an organization in the desired direction. The responsibility to steer lies with the top and the middle level of management. Governance, in simple terms, means administering the processes and systems placed for satisfying stakeholder expectation. When combined Corporate Governance means a set of systems procedures, policies, practices, standards put in place by a corporate to ensure that relationship with various stakeholders is maintained in†¦show more content†¦It is a system of structuring, operating and controlling a company with a view to achieve long-term strategic goals to satisfy various stakeholders and complying with legal and regulatory requirements, apart from meeting environmental and local community needs. It defines and confines the rights and responsibilities of the constituents of the corporate like boards, managers, shareholders and other stakeholders. It also lays down the rules and procedures for making decisions on corporate affairs. Corporate governance systems have evolved over centuries, often in response to corporate failures or crises. The first well documented failure of governance was the South Sea Bubble in the 1700s, which revolutionized business laws and practices in England. Similarly, much of the securities laws in the United States was put in place following the stock market crash of 1929. There has been no shortage of other crises, such as the secondary banking crises of the 1970s in the United Kingdom and the U.S. savings and loan debacle of the 1980s. In addition to the crises the history of corporate governance has been punctuated by a series of well- known company failures. Corporate governance is needed to create a corporate culture of consciousness, transparency and openness. Good governance practices reduce