Observance of Good Corporate Gorvance and Avoidance of Corruption on an Enterprise Effectiveness
- Submitted by: nyondo
- Views: 660
- Category: Arts
- Date Submitted: 10/09/2013 03:18 PM
- Pages: 10
- Report this Essay
Contents
INTRODUCTION 2
CORPORATE GOVERNANCE AND ORGANISATIONAL EFFECTIVENESS 3
CORRUPTION AND THE FIRM’S PERFOMANCE 5
CONCLUTION 6
REFERENCES 7
INTRODUCTION
Corporate governance, as defined by the Bank of Zambia (BOZ) is the process and structure used to direct and manage the business and affairs of an institution with the objective of ensuring its safety and soundness and enhancing shareholder value. Drury et al. (2006) define corruption "as the abuse of public office for private gain," whether pecuniary or in terms of status. The gain may accrue to an individual or a group, or to those closely associated with such an individual or group.
Wu, (2005) gives us an explanation of the linkage between corporate governance and corruption as being especially relevant in the context of developing countries. For instance, many developing countries have embarked on various forms of market-oriented reforms to modernize their economies, and the privatization of state owned enterprises has often been a centerpiece of such reforms.
Privatization, however, presents special challenges for both the public sector governance and corporate governance in developing countries. Poor corporate governance also breeds corruption (Wu, 2005). Hence, in some transition economies, weak corporate governance has facilitated corrupt officials in looting the already impoverished states during the process of privatization (Black, Kraakman, and Tarassova, 2000).
In recent years, corporate governance has received increased attention because of high-profile scandals involving abuse of corporate power and, in some cases, alleged criminal activity by corporate officers. This has made the development of good corporate governance an integral part of an effective corporate governance regime which includes provisions for civil or criminal prosecution of individuals who conduct unethical or illegal acts in the name of the enterprise.
Consequently, Corporate governance has emerged as a major policy...
INTRODUCTION 2
CORPORATE GOVERNANCE AND ORGANISATIONAL EFFECTIVENESS 3
CORRUPTION AND THE FIRM’S PERFOMANCE 5
CONCLUTION 6
REFERENCES 7
INTRODUCTION
Corporate governance, as defined by the Bank of Zambia (BOZ) is the process and structure used to direct and manage the business and affairs of an institution with the objective of ensuring its safety and soundness and enhancing shareholder value. Drury et al. (2006) define corruption "as the abuse of public office for private gain," whether pecuniary or in terms of status. The gain may accrue to an individual or a group, or to those closely associated with such an individual or group.
Wu, (2005) gives us an explanation of the linkage between corporate governance and corruption as being especially relevant in the context of developing countries. For instance, many developing countries have embarked on various forms of market-oriented reforms to modernize their economies, and the privatization of state owned enterprises has often been a centerpiece of such reforms.
Privatization, however, presents special challenges for both the public sector governance and corporate governance in developing countries. Poor corporate governance also breeds corruption (Wu, 2005). Hence, in some transition economies, weak corporate governance has facilitated corrupt officials in looting the already impoverished states during the process of privatization (Black, Kraakman, and Tarassova, 2000).
In recent years, corporate governance has received increased attention because of high-profile scandals involving abuse of corporate power and, in some cases, alleged criminal activity by corporate officers. This has made the development of good corporate governance an integral part of an effective corporate governance regime which includes provisions for civil or criminal prosecution of individuals who conduct unethical or illegal acts in the name of the enterprise.
Consequently, Corporate governance has emerged as a major policy...