Corporate Governance Essay Example | Topics and Well Written Essays - 3250 words

Corporate Governance - Essay Example It also ensures that the other interest groups including minority shareholders, financial markets, debt holders, employees, suppliers, customers as well as societies are not harmed in any form. Some of the fundamental characteristics that define good governance are consensus oriented, accountable, transparent, responsive, participatory, following the rules of law, efficient and effective, inclusive and equitable (Foster and Jonker, 2005). While governance is an old concept, its usage, application and underlying meaning have seen the dramatic transformation over the years. Present governance system of corporations is highly complex and consists of various levels of audits, monitoring and scrutiny (Mwenja and Lewis, 2009). Although organizations have braced the concept in their goals and value system, it is still a largely avoided category for growth and development of an organization. The objective of the current report is to understand and evaluate the various internal and external factors that impact the development of effective corporate governance. It is essential to understand the fundamental concept, theories associated and largely accepted and the governance system followed among different organizations in various parts of the world. An organizational case study with respect to the governance strategies and policies will help in evaluating the current trends and practices. Also, the above analytical outcomes hav e been applied to recommend some key areas which can be developed for better governance systems. Several governance theories have been recognized by experts that have been largely followed for organizations and firms across the globe. However, the current report will describe three main theories that have been largely accepted and studied among economists and academics. These are The first theory that is successful society theory is centered on developing and shaping the governance. Here the focus is given to features as well as characteristics that describe a successful society.