Question

Discuss the external factors that will influence such Corporate Governance Model

Answer 1

The external factors that will influence the corporate governance model are the following

1.Culture - The set of objectives that are followed by both management and the employees through their behaviour , attitude etc will have a strong influence on the corporate governance.

2. The need of thecustomers.--Knowing exactly the need of the customers greatly affect the corporate governance . It keeps a challenge before the management and makes them identify the rivals.

3. Economic condition is one of the major factor in corporate governance . Change in money value goes according to the economic reforms.

4.Customer satisfaction is a crucial aspect. Every stakeholder is very important and policies and regulations change according to their needs.

5. Political power plays a major role in corporate governance model. Rules shoukd be framed in accordance to them and government policies.

6.Two way communication from the management to the employees and vice versa should be clear precise and logical.