How Corporate Governance And The Breakdown Of Each Sector ( Private Versus Public )

1598 Words May 12th, 2015 7 Pages
Introduction Corporate Governance is the system of rules, practices and processes in which a company is controlled and directed. “It essentially involves balancing the interests of the many stakeholders in the company.” (Investopedia). These can include shareholders, management, customers, suppliers, financiers, government and the community depending on the type of company. It provides the framework for attaining any company’s objectives. As western culture transitions into a more globalized economy, a set of standards enhancing corporate character should be evaluated. These standards are created within an organization to add long term value for the shareholders, and should be managed on a regular basis to achieve desired goals that are required for an organization to thrive. These processes originally surfaced due to accounting concerns, relative to company performance. To fully understand the role of economic importance within an organization, a company would need to magnify their strategy to achieve goals, understand the history of Corporate Governance and the breakdown of each sector (private versus public), clarify current market trends as an application in examining the positive or negative effects of their processes and show that change within a corporate environment has drastic effects on their organization. History In reaction to the takeover wave during the 1980s, many firms adopted defenses and corporate provisions that were initially designed to reduce…
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