Why is Corporate Governance Important?

Why is Corporate Governance Important? What is Corporate Governance? Why is it important for Business? Corporate Governance can be defined as the organizational structure of a company. It encompasses the overall processes, operations and policies by which a company is controlled and functions. According to James McRitchie corporate governance is  ¹most often viewed as both the structure and the relationships which determine corporate direction and performance`. Within the governing body of a corporation there are various stakeholders. Stakeholders are individuals which are of great importance to the company because they contribute directly or indirectly to its economic activity. Stakeholders retain different degrees of importance within an organization depending on their title or function which are some of the following: shareholders, the board of directors, employees, customers, creditors and suppliers. All together this group of individuals defines a corporate community in which day to day business is conducted and must be sustained in order for the company to survive. Similar to any other community, where there are conflicts of interests, miscommunication, or other organizational problems it affects the entire community and others around it. However is this applicable to the business world? Is corporate governance important for business? Firstly corporate governance implies the notion of hierarchy. As mentioned above the rights and importance of any stakeholders involved in the economic life of the company varies in function of the roles the individual holds. Following this logic we can identify the key actors within the governing structure of a company: shareholders who own shares of stock and have a right of ownership over the dividends which they receive from their stock and the right to vote on company matters such as electing the board of directors. In return the members on the board of directors oversee the management of the company and are paid in cash or stock for the responsibilities they are obliged to fulfill by contract to the company. In terms of internal management the employees of the company supply their skill and expertise in exchange for financial compensation (salary and bonuses). Another important stakeholder is the customer, who pays for the companys product or services because he/she believes in the value it retains for them. Amongst other stakeholders such as suppliers and creditors the customer is essential to a companys activity because a satisfied customer base represents 80% of a companys profits. In order for us to understand corporate governance it is important for us to comprehend that it is a multi-lateral issue, and thus it influences the choices of stakeholders and the outcome of company transactions and relations with the rest of the world. It is important for companies to take into account external factors such as: competition. In order to stay solvent and relevant, companies must engage respective strategies and face other corporate adversaries on the free market. Equally debt management is important as companies need to make sure that their assets outweigh any short-term and long-term debts on a regular basis. Also government regulations should be taken into account as they differ from country to country. For example in the United States corporate governance is known to be very free-market orientated but in North Korea legislation has a tough hold on corporate decisions. Finally the media and other instances are actors of external pressure as they force companies to uphold a certain social standard in their day to day operations, public relations and more and more today their ecological impact on the environment. In todays economic climate no company can afford to be scrutinized in the mass media as this decreases th eir popularity and trust with clients. The trust of clients is an immeasurable asset that can almost never be reacquired once it is lost. Take for example the American International Group that was under a severe media backlash back in 2009 after it was discovered that it was paying huge bonuses to employees of its financial services department during the financial crisis. President Obama expressed his discontentment during a press conference:  ²its hard to understand how derivative traders at A.I.G. warranted any bonuses, much less $165 million in extra pay. How do they justify this outrage to the taxpayers who are keeping the company afloat? Existing customers and potential customers need to be reassured by a companys, performance history, social responsibility initiatives but overall its integrity. And this is why corporate governance is critical for business; the atmosphere which it creates has to be one of congruence where it can be held accountable for doing what it says and what it stands for. Another one of the facets of this is issue the internal domain of corporate governance, where the management structure (CEO, middle management) is concerned with maximizing company profits in order to increase shareholders profits. This is motivated by a prospect of self-interest and higher gain (promotion, bonus etc†¦) which generates a need to perform in order to reach that goal. Likewise employees are motivated in a similar way to do their job. However their needs are not directly correlated with that of the members of the upper management structure who have larger responsibilities and more information within the same organization. This situation is called information asymmetry when one corporate body has more information than another. This can create conflict within the workplace if this type of imbalance is not managed. Furthermore employees working in high profile positions such as CEOs may be prone to act out of character and make bad decisions because of the immunity the y may enjoy through their status. For example the Jerome Kerviel former French trader of Societe Generale abused of the companys confidence to commit fraudulent transactions during his late professional career. As a result, the company lost:  ³near â‚ ¬5 billion ( £3.7 billion) in a rogue trading fraud according to the London Times. This example of bad behavior known as a moral hazard, when an individual protected from risk within an organization behaves differently than he or she would have behaved if they were fully exposed to the risks they took. In order for companies to protect their clients and themselves from similar fates they must implement effective rules and regulations that enable internal and external auditing bodies to monitor theyre day to day activities. Therefore rules that corporate governance create must be strong, as the Italian philosopher Niccolo Machiavelli said: Where there are sound laws there is a strong army, for there cannot be a strong army where there are not sound laws. Corporate law ensures that natural rules and regulations are in place in order to encourage correct business practices in the corporate world. Overall good corporate governance should input regular auditing processes. Interiorly, within the company itself an internal auditing body should monitor the companys financial health. In addition to this, the same should be implemented exteriorly through an external auditing company in order to get an objective perspective on company statements and verify their integrity. Also a sound board and management system must be put in place, separating every main executive function throughout the organization. Historically this minimizes the moral hazard factor in the workspace and encourages transparency and a clear flow of information within the institution. The Toyota Motor Company is a fine example of this; the company management structure allows the free flow of information and enables each employee to contribute to operational activities at every scale of the production process. This has had positive effects for Toyota mainly in terms of productivity and logistics efficiency. Finally all stakeholders should be aware of their rights and duties; this minimizes confusion in long-term strategy and goals of the company. Furthermore a clear ownership structure is critical to a corporations legal validity; it has to be a registered and recognized institution according to the appropriate corporate law regulation of the country in which in conducts its business. In conclusion corporate governance is an important component of business. As we have demonstrated affects every facet of business organizations and the various stakeholders involved. Furthermore because of the hierarchal nature of corporate governance it becomes evident that good leadership is equally essential. Members within executive, managerial, technical and administrative positions have to work within their respective roles to create an atmosphere of seamless affinity in terms of corporate governance. Leadership is important but in the context of corporate governance the whole body of the organization is vital, hence the root of the word corp in corporate. Nevertheless corporate governance must retain a standard of order; this is where the term governance gains more weight. Historical facts show that sustained order is the key to the long-term effectiveness of an organization; General Electric is prime case of this. Within the 200 year life span of the company, good choices and exceptional leadership have made General Electric today the most valuable company in the United States with a market cap of 300 billion US dollars. From this we can draw the conclusion that corporate governance is indeed important and will surely continue to gain more and more value in the world of business in the future.

Mcdonalds – Tnc

McDonald's – the 90th largest economy in the world – feeds about 1 percent of the world's population a day. That's 68 million people! It hires more than 1 million workers In the US per year and Is the world's largest toy distributed. McDonald's also created the Ronald McDonald House charity, which houses more than 6000 families a year in Australia alone. However, this Illinois-based company is undeniably threatening the ‘global village'. It is doing so in a lot of ways, including the damage it inflicts to the environment, its exploitation of foreign and domestic labor and its active impacts on traditional cultures.In this seminar, I will be analyzing different pictures that support my argument that McDonald's Is directly destroying the global village. I think that through the Impacts It has upon the environment In which we live, McDonald's is directly destroying the global village. As a large company, McDonald's needs a lot of resources to fuel its growth. For exa mple, Americans alone consume over 1 billion pounds of beef at McDonald's every year. A cow produces 250 ml of methane per day on average. Think of how much methane is created by the sows needed to produce 1 billion pounds of beef!McDonald's has also been accused by Greenback of feeding Its chickens with soybeans grown on farms In the Amazon rainforest's. These soybean farms are cleared Illegally. Leading to mass deforestation In the Amazon. By doing this, McDonald's not only encourages illegal traders in the Amazon, but also sends a worldwide message that deforestation is a viable option that can lead to contracts selling produce to McDonald's. Encouraging excessive methane production and deforestation are Just a few of the ways in which McDonald's helps to destroy the environment.McDonald's also negatively affects the global village by exploiting members of the workforce. This Is done through the misuse of domestic and foreign labor. McDonald's has always been the target of accusa tions that they exploit teenage labor, paying them wages that are too low to be readily lived upon. These reduced rates can be seen in this table. But most recently McDonald's has tried to tackle these accusations head on by releasing an example budget for someone who works for the company. From the start this budget was flawed, as you can see here, the employee would have to work two Jobs to survive.This fact shows that an employee could not be sustained on a McDonald's wage. Secondly, McDonald's cited that health cover costs $20. This is not the case, for that amount you would be likely only to get say, ambulance cover. Thirdly, try spending only $25 a day on Just food, let alone drinks, clothes and other necessities. This budget on its own, is certain evidence that you would not be able to live on a McDonald's wage. In extreme cases some people have had to choose between paying bills and eating food.This exploitation of cheap labor is another reason why I think McDonald's Is cont ributing too diminished global village. McDonald's Is also destroying the global village by abolishing various cultures from around the world. As seen in the picture here, McDonald's is intervening with traditional culture, replacing traditional pastimes, like food-preparation and consumption, with an internationalists product. Often in these traditional cultures, things like food can be tied up with rituals, so food is linked to their cultural heritage.By replacing chance to pass on their cultural stories through food. However some people in other parts of the world have realized that this tragic loss of culture is occurring. For example, the people of a small town east of Melbourne called Tacoma has recently protested against there being a McDonald's built in the town. 80 000 people thus far have signed a petition demanding that a McDonald's franchise not be installed in their town. The fact that the company destroys culture and that people are realizing it is another reason that McDonald's is destroying the global village.

Should Gay Adoption Be More Available

Imagine a child living in foster care waiting for months, even years, for a couple to come and adopt them and make them a part of their family. Then, finally, after a long time of heartbreak and loneliness, a family does come. Two people want to give the child a home. These two people have everything that any parent should such as: money, a stabilized job, no criminal records, plans for the future, domestic peace, and all the love anyone could ever give to a child. Yet, at the end of this day, they are turned down and the child is at loss for the opportunity of having a good, loving family. Why? Because the couple that wanted to adopt that child were two men. Does the situation above seem fair to you? Is it right that these two men are turned away from having a child just because they’re homosexuals? If they had terrible records with crimes and they were constantly being fired and other unhealthy activities it would have been right to turn them away, but for two people that were completely competent to adopt a child to be turned away like that is unfair. I believe that homosexual couples should be allowed to adopt children, so long as they are healthy and well-functioning. When you think of a child being raised in a gay community and being often surrounded with the familiarization of lesbians and gays, you may think the child will later in life turn homosexual. Some might, it’s is their choice and there’s nothing wrong with it. However, people that grew up with homosexual parents say that they have never pressured them to follow in their footsteps. Another reason why gays should be allowed to adopt a child is when they have a kid, they intentionally have to go get one, rather than a heterosexual couple can have a â€Å"surprise† child, which may lead to neglect later in the child’s life. When adopting both members of the relationship feel they are both mature and responsible enough to support a child. I’m not trying to state that homosexuals necessarily make better parents than heterosexual couples, but there is a lesser chance of the children being abused or neglected. In parenting, they’re just like you and me. The only thing that’s different is their social status. The only possible downside to a homosexual couple adopting a child that I can find is the child may have a missing father or mother figure. However, there are plenty of children that came from heterosexual parents that face this as well whether it be because of death, divorce, separation, or a night in Vegas. Missing a certain parental figure is not as tragic as you would think, for example, I grew up most of my years not being around my father and I believe I turned out very well rounded. Now I want you to think of a scenario with two parts to it. First is a financially stable, loving, mature, and educated gay couple trying to adopt a child. The other part is a fourteen year old girl that got pregnant and wants to keep her baby. Which one seems easier to do? Sadly, it is easier for a fourteen year old to keep her baby, than it is for the couple to keep theirs. So really, letting gay couples adopt wouldn’t hurt or hinder themselves, the child, or society. When choosing who to let take home a child, consider the two women that have taken interest. Let the fully committed men adopt so long as they pass the inspection. If you do I can almost guarantee that the child will grow up in a loving home with wonderful parents with less chance of abuse and neglect. Thank you for your time and consideration.

Gender Roles in The House On Mango Street - Free Essay Example

Sample details Pages: 8 Words: 2480 Downloads: 2 Date added: 2019/05/31 Category Literature Essay Level High school Tags: The House on Mango Street Essay Did you like this example? Gender roles are a significant component in The House On Mango Street, by Sandra Cisneros. From the outset of the novel, Esperanza faces an identity crisis as she develops from a girl into a woman. Throughout her life, Esperanza experiences the differences between genders, specifically after moving in. Don’t waste time! Our writers will create an original "Gender Roles in The House On Mango Street" essay for you Create order She observes the girls and women living in her neighborhood and begins to internalize the social standing of women compared to that of men. Throughout her life on Mango Street, Esperanza crosses paths with a variety of female role models including Marin, Minerva, Rafaela, and Sally, who are each going through their own crises. Unlike these four women, Esperanza resists these gender norms that are rooted in the community. At the beginning of the novel, Esperanza realizes the differences in social standings between males and females. At a young age, she already witnesses that the boys and the girls live in separate worlds because her brothers refuse to be seen talking to Esperanza and Nenny outside the house (Cisneros 8). The brothers are afraid that if the other boys in the neighborhood see them, they will be judged or mocked, which is the first sign Esperanza recognizes that portrays the differences in gender. Even though Esperanza was raised in the same culture and community as the other women on Mango Street, she does not wish to follow in the footsteps of the women in her family. Esperanza goes against this gender norm by refusing to inherit her [great-grandmotherrs] place by the window and does not want to be trapped like her grandmother once was (Cisneros 11). Also, she believes that the myth that it was bad luck if someone was a horse woman was because the Chinese, like the Mexicans, dont like their women strong (Cisneros 10). Her observations about gender expand to a cultural aspect, believing that men in certain cultures refuse to allow the women to be strong, like her grandmother once was. It is clearly seen that manrs machismo [is] solely responsible for the Mexican-American womenrs domestic entrapment because before Esperanzars grandfather forced her grandmother to marry him, she was an independent, wild woman, who had a sense of freedom (Burcar 121). Afterwards, she looked out the window her whole life, the way so many women sit their sadness on an elbow (Cisneros 11). Due to this confinement, her grandmother was never allowed live life the way she wanted to and lost her own identity to her husband. Esperanza encounters Marin, who is a young girl Puerto Rican immigrant who left her family in order to come to Chicago and take care of her Cousin Louiers family. Marin is a story that is reflective of the predetermined attitude that has been instilled in the mind of many young women because her main thoughts focus on duty, boys, and marriage, which is something very common amongst the female roles in Esperanzars life (Alfaro 18). Marin is not allowed a regular childhood because, as a female, she is forced to take care of the children in the household: She cant come out gotta baby-sit with Louies sisters but she stands in the doorway, a lot, all the time singing (Cisneros 23-24). Not only is Marin obligated to taking care of Louiers sisters, but she is also forced to see the other kids enjoying their childhood outside, unlike Marin who is forced to confinement. However, even when her aunt comes home, Marin is still not allowed outside the front yard. She is restricted to the house an d therefore lacks the sense of freedom, just like most women in the neighborhood. Since Marinrs life in Chicago is valued solely upon the role as a babysitter, she relies on her physical appearance to attract the attention and appreciation she yearns: What matters, Marin says, is for the boys to see us and for us to see them. And since Marins skirts are shorter and since her eyes are pretty, and since Marin is already older than us in many ways, the boys who do pass by say stupid things like I am in love with those two green apples you call eyes, give them to me why dont you. And Marin just looks at them without even blinking and is not afraid. Marin, under the streetlight, dancing by herself, is singing the same song somewhere. I know. Is waiting for a car to stop, a star to fall, someone to change her life. (Cisneros 27) Marinrs perspective on life and the future was implanted in her mind growing up in a male dominated community, both in Puerto Rico and on Mango Street. She was raised in the belief that a woman needs the attention of a man to fulfill her life and therefore behaves as if she was an object for men to take away. She is mainly concerned for her physical appearance as she dresses not for herself, but rather to receive the attention of males passing by. She purposely wears a short skirt and makeup to get men to notice her. Marin assumes that if she does not stand outside, with an attractive appearance, then she will never find a husband on whom she must depend on. Marin also talks about getting a job downtown, something that Esperanza has always wanted. However, Marin does not get the job for a sense of responsibility, but instead she will always get to look beautiful and get to wear nice clothes and can meet someone on the subway who might marry [her] and take [her] to live in a big house far away. (Cisneros 26). Again, Marin solely relies her daily choices on finding a man to marry and to take care of her. Meanwhile, Esperanza does not see it this way, because she has always dreamt of living in a big home to call her own, therefore Esperanza strives to be like Marin, and leave Mango Street one day. Minerva is a young mother, not much older than Esperanza, who has two children, with an abusive husband who constantly leaves her and beats her black and blue. By Minerva raising her two children alone, she is following in her own motherrs unstructured lifestyle, which females were usually expected to do (Alfaro 40). However, she keeps letting her husband back into her life once he apologizes, which displays the control men had over women and how women believed they were weak without a male in their lives. Esperanza and Minerva bond over their shared interest in writing poetry, but Minervars poetry saddens Esperanza, who realizes that she is not the only one on Mango Street who feels trapped. Like Esperanza, Minervas writing is a way to escape the harsh reality of her life. She folds her poems up over and over and hold[s] them in her hands for a long time, just like the emotional distress she keeps bottled up (Cisneros 84). She never gets to fully express her emotions about her life due to the fact that she is basically a single mom who is always busy with either her children or housework. Rafaela is a young woman, who sacrificed her freedom for love. She is married to an oppressive man who is afraid that Rafaela will run away since she is too beautiful to look at (Cisneros 79). Therefore, scared that she will find someone better, he locks Rafaela indoors and forces her to be confined to their apartment as a prisoner. Hence Rafaela leans out the window and leans on her elbow, unhappy with her situation Rafaela wishes for a better lifestyle than the one she has now. The only thing she can do is stare out the window and yell for the children, who are her only means of communication with the outside world. However, even if Rafaela escaped this bitter reality, she would still end up finding a man who is controlling because there is always someone offering sweeter drinks, someone promising to keep them on a silver string (Cisneros 80). At first, a man might seem kind and sweet, however once they have the woman, they turn into a sour and cruel human being. Rafaela just wishe s to come and go on her own terms and to be able to open homes with keys, but instead she is a prisoner in her own home without the opportunity to live life(Cisneros 80). Esperanza notices Sally for her eye makeup and dark nylons and is drawn to her due to her physical appearance. The first description of Sally is that she has eyes like Egypt and nylons the color of smoke. (Cisneros 81). As most girls do not wear as much makeup or as dark nylons, Esperanza is clearly drawn to outliers who stand out from the others. She also notices that all the boys at school think shers beautiful because her hair is shiny black, but not because of her inside beauty, but rather for her physical qualities (Cisneros 81). Sally wears black, which can be predetermined as a color that shows confidence and attractiveness. However, Esperanzars mother says to wear black so young is dangerous (Cisneros 82). Afraid that her daughter will attract the attention of men, Esperanzars mother refuses to let her wear such a bold and confident color that would only cause destruction in her life. Sally also tells Esperanza about her father, who is an abusive and controlling male figure. He believes that to be this beautiful is trouble and forbids Sally from going out. Confining his daughter because of her physical appearance is similar to what Rafaelars husband did to her, which is a constant recurrence in the female life. At the end of each school day, Sally pulls her skirt down, rubs the makeup off her eyes and hurries back to the house [she] cant come out from. (Cisneros 82). Sally is trapped in her house by her strict, conservative father, similarly to how the rest of the women of Mango Street are trapped in their homes. Sallyrs father beats her when she doesnt obey to his strict rules, and her mother doesnt stop him. Instead, her mama rubs lard on all the places it hurts, trying to hide and protect the fact that her husband is beating their daughter (Cisneros 92). Yet, Sally continues to defend her father to Esperanza, constantly saying that he never hits [her] hard, neg lecting the fact that his actions are wrong. The girls and women tend not to rebel against the men in their lives and choose to persist through the menrs unacceptable behavior. Even when Sally tries to run away and stays with Esperanza, her father apologizes and Sally accepts right away. The next day, she is caught disobeying her fatherrs rules and he just forgot he was her father between the buckle and the belt (Cisneros 93). Similar to Minerva, Sally forgives her father quickly, thinking he will change, but the men do not change their actions towards the females in their lives no matter what. In an effort to escape her abusive father, Sallyrs only option was to marry young. At the beginning of the marriage, Sally displays a happy demeanor when speaking about how she has her husband and her house now, her pillowcase and her plates, but her happiness seems to stem more from the material possessions she now has, rather than the actual love she has found. Now that Sally obtains all these inanimate objects that she can have control over, she finally feels like she has control over her own life. However, not far along into the marriage, her spouse becomes the man that she was originally trying to flee from. At a certain point he becomes so violent that once he broke the door his foot went through (Cisnero 101). Little by little, Sallyrs husband is becoming just like her father. He becomes extremely controlling and doesnt let her talk on the telephone. And he doesnt let her look out the window and nobody gets to visit her (Cisneros 102). Unlike the other women throughout the nov el, Sally is not allowed to look out the window, which shows the different levels of captivity women endured. However, Sally, like other women throughout the novel, loses her freedom quickly to a man she assumed would save her. Throughout the novel, mistreatment of women is seen in various family situations, and it is believed that girls will follow in the footsteps of their female ancestors. However, Esperanzars mother refuses to let her daughter make the same mistakes she did and tells her to go to school and to study hard. Her mother had a successful past with many talents in the liberal arts, yet, she quit school because [she] didnt have nice clothes. No clothes, but [she] had brains (Cisneros 91). Women are not judged by personality or smarts, but rather they are categorized based on appearance, which can make them feel self-conscious and lead them into an unhappy lifestyle, like Esperanzars mother. Towards the end of the novel, Esperanzars actions and words rebel against the idea of belonging in a male dominated household. She refuses to grow up tame like the others who lay their necks on the threshold waiting for the ball and chain, instead she will be the one who leaves the table like a man, without putting back the chair or picking up the plate (Cisneros 88-89). Esperanza does not want to end up like the rest of the women on Mango Street, who are stuck and cannot escape the wrath of patriarchy, therefore she makes the decision to follow in her own footsteps instead of her motherrs. She does not sit around and wait for a man to change her life, instead she changes her own life and becomes independent. Esperanza expresses that she desires a house of her own, not a manrs house. Not a daddyrs, but a house she earned herself in which she does not have to listen to a manrs rules and can live her life freely (Cisneros 108). All of the women and girls on Mango Street are stuck, each with their own troubles are crises. Unlike Esperanza, Marin, Minerva, Rafaela, and Sally are waiting for someone or something to change their lives and take them away from Mango Street. The females of Mango Street are stuck, waiting for the decision as to which path they will take. At the conclusion of the novel, Esperanza makes the decision to leave Mango Street for those who cant and escapes the traditional values that are forced upon women in the Mango Street community. Works Cited Cisneros, Sandra. The House on Mango Street. 25th ed., Vintage Contemporaries , 2009. Alfaro, Melissa. The Oppression and Deliverance of Women in Sandra Cisneros The House on Mango Street. Texas Womanrs University Library, 2006, https://twu-ir.tdl.org/handle/11274/9047?show=full, Accessed 4 December 2018 Burcar, Lilijana, Ethnicizing in Womenrs Domestic Entrapment in Sandra in Sandra Cisneros Anti Bildungsroman The House on Mango Street. Fluminensia: Journal for Philological Research, 2017, https://hrcak.srce.hr/file/282741 Accessed 3 December 2018