Corporate governance and its importance
Student-written example
Shared for study and reference. Not a sample of our professional writing.
About this example
This assignment was contributed by a student. The views expressed are the author’s and do not necessarily reflect those of UKEssays. Use it to inform your reading and develop your own work.
Part of: Business Management
Question
What is corporate governance and why is it important?
Answer
Corporate governance can be briefly summarised as the systems and processes by which companies are controlled and directed. The concept is important in theory and in practice, as businesses have various stakeholders. An effective corporate governance code is able to balance the variety of interests of the different stakeholders of a company, including: management, employees, suppliers, shareholders and its community.
The corporate governance code in the UK uses a “comply or explain” approach. This means that companies have to follow the principles in the code or explain why they have used an alternative approach. The key principles of the corporate governance code are: leadership, effectiveness, accountability, remuneration, relations with shareholders (Financial Reporting Council, 2014).
References
Financial Reporting Council (2014). The UK Corporate Governance Code. Available: https://frc.org.uk/Our-Work/Publications/Corporate-Governance/UK-Corporate-Governance-Code-2014.pdf. Accessed: 23/05/16.
UK Essays writing support
Need support with your own question?
Get help from our experienced academic writers. All hold at least a 2:1 degree from a reputable university, and most hold a master’s degree or PhD, and/or have teaching experience.
Send us your question and, if you wish, any marking criteria. We’ll write a model answer to your brief.
Cite This Work
To export a reference to this article please select a referencing stye below:
Related Services
View all
Related Content
CollectionsContent relating to: “Business Management”
Business Management describes the management of business operations and activity, including the planning, organisation, resource allocation, and implementation of efforts towards achieving their goals.
Related Articles
DMCA / Removal Request
If you are the original writer of this assignment and no longer wish to have your work published on UKEssays.com then please click the following link to email our support team:
Request essay removal