Question

Identify a major corporate governance issue.

Corporate governance is the corporation's ability to govern itself through the board, through shareholders, through its leadership, etc.

Provide a specific example and answer the questions below.

1) Major corporate governance issue?

2) How does the situation connect to corporate governance?

3) Evaluate applicable legislation, grassroots movements, and the role of the SEC.

4) What recommendations would you make to improve or correct this situation?

Please help being very specific during all four questions.

Answer 1

Corporate governance is about enabling organisations to achieve their goals, control risks and assuring compliance. Good corporate governance incorporates a set of rules that define the relationship between stakeholders, management and the board of directors of a company and influence how the company is operating.

1). Good governance is an ideal which is difficult to achieve in its totality. For the implementation of a rigorous corporate governance code, companies and institutions must come together regionally and internationally to draft corresponding guidelines. One of the main issues, at least in the U.S., is that plenty of well-intentioned people have brought their ideas and experiences to the policy-making table but it hasn't resulted in any clear-cut framework.

In the U.S., stock exchanges compete for listings and imposing rigorous corporate governance responsibilities might lose them business. The Securities and Exchange Commission, the primary regulator of listed companies, is hot on the issue of transparency and comes down hard on companies that don't prepare their financial reports properly or disclose information to stakeholders in the appropriate way. However, it doesn't look beyond the issue of disclosure. for example, a company might defy shareholders' wishes and offer a large cash bonus to an unpopular and under-performing director. On the face of it, the decision is an example of poor governance as there's no consensus, inclusion or stakeholder accountability in the decision-making. But the SEC would allow it as long as the company made full disclosure in its reports. This type of regulation has been likened to a stop sign – useful to prevent serious accidents, but in no way a substitute for skillful and judicious driving.

2). Recognise that good governance is not just about compliance. ,Clarify the board's role in strategy,Monitor organisational performance,Understand that the board employs the CEO,Recognise that the governance of risk is a board responsibility. Ensure the directors have the information they need.

3). Corporate governance and the Creation of the sec. It is widely considered that the most significant change to U.S. financial regulation in the past 100 years was the Securities Act of 1933 and the subsequent creation of the Securities and Exchange Commission to enforce it.

The stock exchanges play a role in the regulation of corporate governance as well. Securities and Exchange Commission at least for public companies. It is the Commission that ensures investors4 and shareholders have the information necessary to make informed decisions. The SEC is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation.

4). Corporate governance issue takes place when corporate fails to lead shareholders wealth, and board of its own. I just recommend that sec is very important board that regulate all the monetary activity in the corporate world with stock exchange . It proveides sucurness ,safety and assurity to the ancestors in the market so that there will be no corporate governance issue or will be very low.