Table of content

1. Question 1

1. Introduce to Corporate Governance

2. Governance makes a Difference

3. Failures of Corporate Governance

4. Failures in Major companies

5. Reform of Corporate Governance

6. Conclusions

2. Question 2

1. Introduce to Cadbury Report

2. Conclusions

3.0 References

Question 1

Based on the above it has been stated that “the problem is not a failure to comply with rules but a failure in governance practice”. Do you agree and why? (10 Marks)
Introduce to Corporate Governance Corporate governance looks at issues pertaining to transparency, integrity, effectiveness and accountability in the management of the affairs, and all other activities of an organization. Management is concerned with the company’s operations, functions and financial performance; hence, corporate governance aims to involve the quality assurance of the operation of the board itself. The concern is for the welfare, good performance, corporate ethics and morality, as well as social and public responsibility for the good corporate citizenship. Corporate governance also involves in system to ensure that the organization’s obligations to its major stakeholders. The relationship among the many stakeholders and the way of corporation is directed and governed is therefore created. Stakeholders might include customers, employees, creditors, suppliers and distributors, the community and the owners at large. The principle stakeholders are the board of directors, managements and shareholders. The first model of corporate governance implementation is often involves three groups: - executive board, supervisory board, and advisory board whose are appointed by shareholders to run the company except last group are bought in as independent experts to assist the company.