Complete 6 page APA formatted essay: Corporate Governance.Download file to see previous pages... In addition, the 2007 global economic crisis can be attributed to the corporate governance failure to a

Complete 6 page APA formatted essay: Corporate Governance.

In addition, the 2007 global economic crisis can be attributed to the corporate governance failure to a great extent. This paper will explore the practical strategies which would improve current corporate governance system in UK. Corporate governance The concept of corporate governance underwent tremendous changes from period to period since its origin. Managements always pay attention to update their corporate governance strategy in accordance with the needs of time. The corporate governance policy also maintains the relationship among the stakeholders and the objectives of the organisation (OECD). In case of contemporary business concerns, the external stakeholder groups mainly include shareholders, creditors, suppliers, and customers while board of directors, executives, and employees. Top level mangers always focus on the impact of their corporate governance strategy on economic efficiency in addition to a strong emphasis on shareholder values. Since a series of corporate failures in 2001 were attributed to accounting fraud, today organisations give focus on internal check policies while formulating their corporate governance strategy. ...

The corporate governance practices are largely different across the globe. The Continental Europe’s multi-stakeholder model gives first priority to the interests of workers, customers, managers, and suppliers whereas the Anglo-American corporate governance model mainly recognises the interests of shareholders (Vasilescu, 2008). Continental European countries like Germany and Holland possess two-tiered Board of Directors with intent to improve their corporate governance practices. The main point of difference in corporate difference between United Kingdom and United States is that in UK, the CEO generally does not hold the chairmanship of the board whereas in US, the CEO also serves as the Chairman of Board. Corporate governance in UK In the opinion of Roberts (2011), the balance of power between the board of directors and the general meeting primarily constitutes corporate governance of a UK company. Generally, the term “governance” is used to refer to principles mentioned in the UK Corporate Governance Code. The UK Corporate Governance Code 2010 is a set of corporate governance principles which aim the improved performance of the listed companies on the London Stock Exchange (Harbottle and Lewis). Financial Service Authority’s Listing Rules demand the public listed companies to disclose how they have abided by the proposed code and explain where and why they have ignored the rule. Private companies are also encouraged to follow these corporate governance guidelines even though it is not a compulsory requirement in private firm accounts. This Code contains a principles-based approach and a rules-based approach.