Hugo Boss Fashion and Style Organisation - Impact of Geographical Location on Corporate Governance Structures

Name of University…[pic 1]

Corporate Governance Essay

[pic 2]

[pic 3][pic 4][pic 5]

Table of Contents

                                         10

Table of Contents

Introduction:        2

Impact of geographical location on corporate governance structures:        2

Corporate governance & board accountability:        5

        financial reports:        6

        risks and internal controls:        6

        internal audit:        6

        external auditors:        6

Corporate governance & board diversity:        7

Corporate governance & board effectiveness:        7

Conclusion:        8

References:        9

Figure 1: German Corporate Governance Model.......................................................................3

Figure 2: UK Corporate Governance Model..............................................................................4

Introduction:

Implementing rigorous corporate governance is one of the key concern for shareholders now-a-days which not only ensures organisations or corporations are controlled and managed for upholding shareholders interest but also embeds integrity, accountability, independence and transparency in organisational culture. (Solomon, 2007) After several corporate collapses in UK e.g. Polly Peck became bankrupt after couple of years of falsifying financial reports perpetrated by Robert Maxwell, Cadbury Committee was formed which defined corporate governance as such a mechanism that would control and direct an organisation. Corporate governance is also defined as the relationship among organisations shareholders, directors and other wider stakeholders. (Keay, 2015)

Hugo Boss (HB) is a Germany based fashion and style organisation which is listed on the Frankfurt Stock Exchange. As a German company HB is bound to comply with German Corporate Governance Code. On the other hand, Burberry Group PLC (BGP) is a British luxury fashion brand for clothing and fashion accessories which is listed on the London Stock Exchange and a constituent of FTSE 100 index. Although main principles and attributes are similar in different corporate governance codes but inevitably geographical location has direct impact on corporate governance structure in different companies located in different countries.