Corporate Governance Assignment Example | Topics and Well Written Essays - 2250 words

Corporate Governance - Assignment Example The framework also contains the procedures for proper control, supervision, and information flows which are ought to serve as checks and balances system. Corporate governance provides a framework for attaining the objectives of the company. It makes it encompass practically every sphere of management, from internal controls and action plans to corporate disclosure and performance measurement. Most firms nowadays strive to have a high degree of corporate governance (Solomon, 2004). Most companies no longer desire to be only profitable but also demonstrate perfect corporate citizenship through ethical behavior, environmental awareness, and sound corporate governance practices. Corporate governance helps in streamlining processes and guides in giving people accountability. Corporate governance helps in the process of decision making. One of the primary goals of corporate governance is to explain clearly to the stakeholders, the board, and the shareholders what their responsibilities and duties are within the company. It becomes easier for the people within the firm to understand whatever they are accountable for, after understanding their duties and responsibilities. If the board has the responsibility for proper evaluation of the management of the company, then they are held accountable for it. If the companys management is poor, then the board is held accountable because it is its role to evaluate the management of the company (Sheikh, 1995). The blame will thus not be transferred to other members of the corporation and in this case the blame will be with the board. It thus helps in preventing situations in which there are no ways to know the accountable people for whatever actions. Accountability helps in decision making within the company setup. Accountability helps in finding out about who should get an acknowledgment for the good work done in their respective fields and who should get punished