Corporate governance refers to the mechanisms set to govern how corporate institutions are run. Policies and laws, cultural perspectives all influence how corporate processes are done in a way that ensures the ultimate goals of the company are realized. The management of corporations is led by the board of directors who carry the responsibilities of corporations in a way that suits the shareholders ideals. Discussion on corporate governance in a wide topic but this essay focuses on the accountability of the corporation and whether or not the legal procedures are followed.
In the recent past, multinational corporations have ventured into the global market given the opportunities created by the inventions in ICT sector. This happens amid uncontrolled legislations at the international level. Through the media and online avenues, corporations continue to raise public alarm in regard to such concerns as possible crimes, abuse of corporate power, and public manipulation among other concerns. The media has helped in exposing the malpractices done by corporations; though, there is lack of legislation that can challenge the status quo. The business practices of corporations cause harm to employees and final consumers of their products, lead to environmental pollution, the creation of social classes, and wastage of available resources. “Corporations are such a pervasive element in everyday life that it can be difficult to step back for enough to see them clearly.” This has created the notion referred to as economic liability crisis. The dominance of corporations surpasses the above-mentioned crises to even entice political influence.
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The influence of State Corporations do not end with the harm it causes its employees but also influence lives of the unemployed and some media houses. The mental torture resulting from these practices should be blamed on the excessive power given to the corporations in favor of individuals. The power of corporations goes beyond our traditional values, and that should be a concern in the society. There is need; therefore, for corporations to adhere to the legal frameworks under which they operate in order to ensure the society lives harmoniously. The powers that they operate under today are influential and there is need of either reformulating the policies or ensuring that the laws are implemented by the corporation if there could be any breech of the written law.
There is need of reforming corporate governance even if it means altering the structure of operation of corporations in order to combat organizational crimes, make shareholders” opinion count in the operation of corporate activities, standardizing the Corporate Social Responsibility (CSR). “More confusing still, in some definitions CSR is subsumed under sustainability, while in others sustainability is included within CSR.”Another important area that needs redress is the influence that government administrations have on the activities of corporations and vice versa; however, complex this issue is. This is because governments are always allies of these corporations and breech of any corporate regulation is bound to go unpunished. “UK corporate failure arose from weak corporate governance structures between the publication of the Cadbury Report and the Hampel Report.”The backs then stops with the government; to try and institute reforms that will ensure capitalist nature of corporations are tamed and at the same time making sure the doctrines under which they operate are intact.
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