Why Corporate Governance Matters

For a number of reasons, corporate governance
has been “front page” news all around the world over the last two decades.  Unfortunately, one of those reasons has been
the proliferation of scandals and financial crises that trace their roots to
apparent shortcomings in corporate governance systems in countries dispersed
widely around the world including the US, Russia, Brazil and Japan and other
parts of Asia.  The response has been a
plethora of changes to laws and regulations as well as countless reports and
model codes of conduct.  In the US, for
example, the Sarbanes-Oxley Act and directives issued by the Securities and
Exchange Commission through the national securities exchanges have
substantially changed the landscape for duties and responsibilities of
directors, officers, outside auditors, attorneys, and investment bankers.  The focus of these corporate governance
initiatives varies from place-to-place and time-to-time and has included
attempts to reduce the perceive lack of transparency in corporate governance
systems and an unwillingness to integrate independence into the board rooms,
improving the diversity and functioning of boards of directors and identifying ways
to enhance the engagement and participation of shareholders. In addition, the
perceived need to improve corporate governance has attracted the interest of
global economic and political organizations working on development programs.  To learn more about "why corporate governance matters", see this month's report.

2 thoughts on “Why Corporate Governance Matters

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