Question

Discuss the institutionalization needs and reasons of companies within the framework of the main philosophy of corporate governance. In this context, examine why shareholders are brought to the fore and what kind of additional and new principles can be applied for improvement by evaluating their current initiatives in the institutionalization of the company.

Answer 1

Corporate governance is a set of mechanisms, processes, and relationships through which companies manage and operate. Governance structure and principles define the distribution of rights and responsibilities between different participants in the corporation (such as boards of directors, shareholders, creditors, creditors, auditors, regulators and other stakeholders) and include rules and regulations. How to make decisions in corporate affairs. Corporate governance is necessary because of the potential for conflicts of interest between stakeholders, especially between shareholders and senior management or between shareholders.

Corporate governance includes the processes by which corporate goals are defined and implemented in the context of the social, regulatory and market environment. These include monitoring activities, policies, practices and decisions of corporations, agents and their stakeholders. The practice of corporate governance can be seen as an attempt to align the interests of stakeholders.

Interest in the corporate governance practices of modern corporations, especially with regard to accountability, increased the major failures of some of the largest corporations in 2001-2002, mainly related to accounting fraud. And then again after the financial crisis of 2008.