Comparative Corporate Governance Essay Example | Topics and Well Written Essays - 2500 words - 1

Comparative Corporate Governance - Essay Example Apart from the governance framework it also includes the legal, institutional, ethical and regulatory framework of the community. Corporate governance is also responsible for the accountability to capital providers. It deals with the conflicts between the management and the investors. In a broad perspective, corporate governance is defined as the ways in which an organization is administered, controlled and directed (Corpgov, 2012). The corporate governance norms have shown a trend towards a growing convergence. Growth of globalization boosted by technological advancement has allowed the stakeholders to maintain a close relation and connectivity with the company (Carati and Rad, 2000). The advent of internet connectivity has made the global business market an open platform, where the stakeholders can easily compare between different governance norms followed in different organizations. Most of the firms operate in perspective of multi- national stakeholders, where the investors of a particular company belong to different cultures. As a result the firms needed to adopt a commonly accepted and globally used corporate governance system. The convergence of the corporate governance is to make sure that all the stakeholders, employees, and the management work in a convergent way so as to create value to the organization and all associated individual (Strandberg, 2005). Previously, the governance process was only focu sed on the firm’s compliance to set rules and regulations. Eventually the process has evolved from box-ticking approach to a behavioural transformation, which allows the organization to not only make sure that it is moving in the right direction but also it ensures value addition for the stakeholders. The importance of stakeholders has become a major concern for the firms, as they represent the primary determinant of the organizational success (Vogt, 2007). Among the stake holders the