Conceptualisation of Globalization & Corporate Governance

 Conceptualisation of Globalization & Corporate Governance

Shweta Bhatt

Assistant Professor,

Department of Management Studies,

NATIONAL P.G COLLEGE,

Lucknow ,U.P , India.

                                                       Email Id: bhattshweta.gcet@gmail.com

Abstract:

The global activities undertaken by different corporate agencies in international arena impact corporate governance mechanisms and accountability systems. Corporate governance is a system of corporate management and control to satisfy the strategic goals of all stakeholders while complying with the legal, ethical and other environmental needs of the society.

Effective corporate governance reduces “control rights” shareholders and creditors confer on managers, increasing the probability that managers invest in positive net present value projects . Thus, the relationships of the board and management should be characterized by transparency to shareholders, and fairness to other stakeholders.

Corporate governance have argued the need to better explain the dynamic dimensions of corporate governance over the company life cycle as well as the diversity of corporate governance arrangements across countries and over time. An important agenda in corporate governance research is to better understand the diversity of corporate governance arrangements, and how the effectiveness of corporate governance relates to its fit with diverse organizations and environments.

This paper focuses the role and importance of universal principles of corporate governance applicable to organisations worldwide. The corporate governance structure specifies the distribution of rights and responsibilities among different stakeholders in the corporation such as: the board, managers, shareholders, customers, employees, among others, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the companies’ objectives are set and the means of attaining these objectives and monitoring performance

Keywords: Corporate Transparency, Visionary Corporate Governance, Accountability, Corporate Control

INTRODUCTION:

Global Governance Program has evolved since the mid-80’s when it was solely reactionary: reacting to the anti-takeover actions of corporate managers that struck a dissonant chord with owners of the corporate entity concerned with accountability and fair play. The late 1980s and early 1990s represented a period with a great deal about the “rules of the game” – how to influence corporate managers, what issues were likely to elicit fellow shareowner support, and where the traditional modes of shareowner/corporation communication were at odds with current reality. Beginning in 1993, focus was given towards companies considered by virtually every measure to be “poor” financial performers.