Transparency In Corporate Governance Essay

1428 words - 6 pages

Transparency is imperative with respect to corporate governance due to the crucial nature of reporting financial information to maintaining investor and consumer confidence. The lack of devotion to corporate governance policies will send the message that the company is unbalanced and the leadership is not incorporating the highest level of integrity with change initiatives. The importance of integrating financial reporting, auditing processes, developing clearly outlined information on the roles of the CEO and board of directors is part of the transparency philosophy that can impact any organization. McBride Financial Services must develop and implement a corporate governance system that will not only satisfy the organizational objectives, but also the stakeholders as well.In order for Hugh McBride, the CEO of McBride Financial Services, to alleviate potential problems a well thought out plan needs to be implemented to sustain the business for longer-term with capabilities of becoming financially stronger. The leadership within an organization has to maintain a corporate culture that integrates ethical decision making approaches to stick to corporate governance rules. Additionally sustaining a balance of power between the executive management including the CEO and the board of directors is crucial for reinforcement of stability in the corporation.Ensuring that corporate governance is being included in all procedures at McBride Financial Services, Hugh McBride has to set the tone by ensuring that the Sarbanes-Oxley Act (SOX) is being upheld, which can be interpreted by stakeholders as strength and stability of the corporation. Because publically held companies have to comply with this law, ensuring that his executive management has a thorough knowledge of this mandate and other governmental regulations can avoid problems with compliance.McBride Financial needs to incorporate business practices that are at the highest level of corporate governance conformity. The issue of not adhering to corporate governance regulations has led to the downfall of some of the most reputable corporations of the 21st century. To avoid following the same path Hugh McBride has to establish doctrine on governance practices that have long been adhered. The value of integrity and truthfulness should originate in the CEO and should additionally be entrenched in the corporate culture. "Improving practices and procedures in corporate governance that, to varying degrees, provide the basis for strengthening a board's ability and motivation to monitor managerial performance," (Chew & Gillan, 2005) Hugh McBride has the responsibility to lead the efforts on approaches that integrate values and ethical decision making processes in the corporate culture. Securing this path can be facilitated by assessing the possible risks that can evolve from integrating alternative solutions and mitigating risk. Two areas of focus are outside auditing controls and formalizing the role of the...

Find Another Essay On Transparency in Corporate Governance

Issues in corporate governance Essay

3524 words - 14 pages market and tried several last ditch efforts to avoid the crisis, but because of several reasons crashed and resulted into a loss of billions of dollars of small investors and resulted into various businesses shutting shop to avoid litigation because their insurance provider had collapsed, thus resulting in many more billions of combined loss of the stake holders. The resulting evolution in corporate governance principles governing corporate have made


2240 words - 9 pages which the frame work for GE was set as governance principles. They also decided to review the frame work on an annual basis and more often if it’s necessary. Role, functions and qualification of board and management Business is been directed by its employees, managers and officers, with the supervision of CEO. The supervision is been done in order to improve the company mission for the benefit of shareholders. The board of directors are

Corporate Governance in Saudi Arabia

661 words - 3 pages improved, and was also supplemented by another royal decree, the Professional Companies Law which was first released and ratified in 1991. The Professional Companies Law is considered to be the main law, which governs all types of businesses in Saudi Arabia nowadays. Finally, we reach the Capital Market Act of 2003, and the Corporate Governance Regulations Act (for capital markets) of 2006, which are the laws that rule the Saudi Arabian financial

Gender Diversity in Corporate a Governance Report

974 words - 4 pages governance are: integrity and ethical approach, transparency, equitable treatment of shareholders, disclosure and openness and guarding the interests of the stake-holders. Significance: It brings a fair amount of confidence in all the stake-holders which are associated with an organization that is handled by good corporate governance. From an organization’s point of view, it makes it easy for the companies to lure foreign investors and source capital on

The Role of Ethics in Corporate Governance

1743 words - 7 pages to its shareholders and society at-large in promotion of accountability, fairness and transparency. The Organization for Economic Co-operation and Development (OECD) defines corporate governance as “Procedures and processes according to which an organization is directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization – such as the

Institutional Investors’ Role in Corporate Governance

1781 words - 8 pages an increasing role for institutional investors over the years, there lies a need for more regulations on the responsibilities they have. There is a push for companies to better disclose institutional investors’ involvement to add more transparency for the individual investor. Overall, institutional investors can have a positive influence and should have an active role in a company’s corporate governance, only if they remember their

Risks of Non-Compliance in Corporate Governance

2295 words - 9 pages empowering audit committees, adding financial experts to their boards such as CPAs, enhanced financial whistle-blowing capacity, and improved corporate transparency in financial statements and shareholder disclosures. Good corporate governance is a part of good risk management plan. Providing the tone for the organization from the top that brings problems and issues to light so that they can be addressed promptly" (Causey, 2008. p. 50). In

Risks of Noncompliance in Corporate Governance

3796 words - 15 pages affects on your business -beyond the levying of fines (or imprisonment if you are found willfully fraudulent). In addition to the governance and transparency requirements of the Act described above, SOX also creates new categories of infringement that include willful destruction of documents, management retaliation against whistle blowers and fraudulently influencing a company's auditors. Some two years after SOX was enacted, cases are just now

Development Comparison of Corporate Governance in Malaysia and Singapore

1410 words - 6 pages by family groups respectively, while Singapore at the average level with 55.4% (Cheung & Chan, 2002). The high percentage of family ownership in Malaysia and Hong Kong caused these countries to face the issue on the lack of uniform accounting standards and sufficient disclosure of information (Cheung & Chan, 2002). Consequently, these three countries including Singapore revised their Corporate Governance Code and highlighted the transparency and

The Rising Importance of Corporate Governance in Contemporary Business Environment

1816 words - 7 pages of rights and responsibilities among different participants in the corporation such as the board members, shareholders and other stakeholders….." World Bank President J. Wolfensohn says that Corporate Governance' is about promoting fairness, integrity, transparency and accountability. Vindel L. Kerr, author of Effective Corporate Governance defines it as "the law, regulations and acceptable business practices which together determine the

Corporate governance and firm performance in Pharmaceutical industry of Pakistan

3362 words - 13 pages AbstractThere has been much discussion recently about whether corporate governance makes a difference in improving company performanceThis study is initiated on "corporate governance and firm performance" with the samples of 8 pharmaceutical companies using the data from their annual reports, representing the periods of 2008 - 2012. Board committee, board meeting and board size including executive directors and non-executive directors were used

Similar Essays

Transparency In Corporate Governance Essay

1625 words - 7 pages PAGE 2 Transparency in Corporate Governance Transparency in Corporate GovernanceTerri GilbertUniversity of PhoenixIntroductionBusinesses in the United States are overcoming the financial corruption and malfeasance of earlier decades. Government intervention of applicable laws and stock exchanges regulations has put a new spin on corporate governance. Corporate governance philosophy has shifted from the agency theory of providing management

Transparency In Corporate Governance Essay

1405 words - 6 pages Transparency in Corporate PAGE \* MERGEFORMAT 1 Running head: TRANSPARENCY IN CORPORATE GOVERNANCETransparency in Corporate GovernanceUniversity of PhoenixTransparency in Corporate GovernanceThis paper evaluates the case of McBride Financial Services, Inc (MFSI), evaluating the concept in corporate governance transparency and the relationship between self-interest of management and effective corporate governance. According to Chew and Gillan

Trends In Corporate Governance Essay

5057 words - 20 pages governance are international benchmark for policy makers, investors, corporations and other stakeholders worldwide. These principles have developed the corporate governance program and they offer precise direction for legislative and regulatory initiatives in both OECD and non OECD countries.The OECD adopted five basic principles to ensure transparency. These were the sound corporate governance framework with effective regulatory and enforcement

Corporate Governance In Nokia Essay

1283 words - 6 pages 2011. According to the guideline of NOKIA all the board of directors are committed to follow certain rule and regulations to build good corporate governance. As we all know corporate governance provides the certain balance among the customers, stakeholders, investors and management of the respective company. In NOKIA there is province for the audit committee, personal committee, corporate governance and corporate ethics for senior financial