Corporate Governance : A Troubled Economy Essay

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A troubled economy filled by financial crises and scandals has expanded the concept of corporate governance. The Institute of Financial Auditors said that the Corporate Governance is constituted of processes and structures implemented by the board of directors to inform, direct, manage and monitor the operations of an organization towards reaching its goals. Internal audit tells us that an organization reach its objective by bringing a disciplined, systematic approach to improve and evaluate the effectiveness of risk management, internal controls and governance process.
The World Bank has defined corporate governance as ‘the manner in which power is exercised in the management of a country’s economic and social resources for development’ the corporate governance relates to how well an organization is managed to ensure its sustainability as a going concern. Governance is where organizations are controlled and directed. Moreover it is the procedures and rules for decision making on corporate affairs, to ensure success while maintaining the right balance with the stakeholders’ interest.

3.2- Corporate governance role and dimensions
The key dimensions in corporate governance recognized by the World Bank are: legal framework; improvements in management; accountability; and, information and transparency. Key dimensions and attributes of corporate governance framework (adapted from World Bank, 1991)
A. Legal framework or corporate policies
As per World Bank there should be
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