Corporate Governance Issues- Pre and Post financial Crisis

By Unnikrishnan. P -ID No. 4317257 Session: Spring Year: 2013 Word Count: 1768

“Corporate governance is concerned with holding the balance between economic and social goals and between individual and communal goals. The governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations and society.” (Sir Adrian Cadbury, UK, Commission Report: Corporate Governance 1992).

The concept of Corporate Governance (CG) in this corporate world has gained extra importance after the recent global financial crisis. Trading in the world has history of centuries and so do the existence of companies & business. The structure of company, its practices, the roles of key personnel, organizational behaviour, performance & goals got a new outlook in recent past when the collapse of Big firms such as Worldcom, Enron, Lehman Brothers etc. were witnessed despite their long history in business or their top ranking position in the business world. Business intellectuals agreed to this term “Corporate governance” after Baysinger and Butler (1985) phrased it. In early days ownership remained the source of power, even after limited liability companies were formed in 19th Century. Shareholders were numerous in numbers when compared to early 19th century, companies were becoming global too, and complexity