Corporate Governance

Abstract

Corporate governance is the cornerstone for the organization, when it comes to effective internal control systems by modern organizations. Over the last 20 years, several business giants have collapsed under the weight of illegalities and frauds, such as Enron, WorldCom, Guinness, Maxwell Group, Barings Bank, etc. The impact of the failure of these organizations on the economies in which they were operating was particularly significant and had a negative impact on those directly or indirectly associated with them. The shareholders, as well as all stakeholders such as suppliers, customers, creditors, employees, and governments of the countries where the above organizations were active, were adversely affected. The failure of the organizations was attributed to the inadequacy of their boards and the lack of organized and effective control mechanisms by their management.