Question

Critically discuss whether it would be desirable to have one model of corporate governance applicable to all countries.

Answer 1

Corporate governance is a set of rules, regulations, culture, and ethics that is followed by a business organization. Corporate governance directs the employees of the organization into the direction in which they are supposed to work and achieve organizational goals.

It would not be desirable to have a common corporate governance for all the countries. This is because all the countries have different culture and employees belong to different background. Each country has different customer and theri preferences also varies. And to manage cultures and preferences of different people. In different countries, all the business organization have to work according to their respective cutlre and formulate their corporate governance around it.

Having a common corporate governance will not benefit the countries and it's people and will not be able to satisfy the needs of the organizations and people of different countries. Culture of one country cannot be similar to another country and hence, having a common corporate governance is a bad idea.

However, if there is need to look after the corporate cultures of the organizations in different countries, world Trade organization can help in monitoring it and making sure that corporate governance adopted by different countries does not hamper the international corporate relations and does not expoilt the customers.

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