In a 1,400-1,750-word paper apply the concept of transparency to corporate compliance within the McBride organization. Additionally, evaluate at least three instances in which the relationship between the self-interests of management relate to effective corporate governance
Concept of transparency to corporate compliance within McBride Financial
Transparency lies at the intersection between the public’s right to know and the corporation’s right to privacy (Borgia, 2005, pg. 20). The public involves stakeholders such as employees, unions, governments, media, customers, suppliers, investors, and other financial institutions who have an interest in obtaining corporation information about management and strategy. All stakeholders want to know facts about a corporation’s financial health and structure, including whether officers and board members are acting in the interest of the shareholders, employees, customers and the public. Most media articles about certain businesses involve transparency because it discusses how corporations conduct their businesses through their accounting methods, earnings, insider trading, conflict of interest, executive compensation and the independence of their boards of directors (Borgia, 2005, pg. 21). Financial transparency is defined as, “A primary goal of the federal securities laws is to promote honest and efficient markets and informed investment decisions through full and fair disclosure. Transparency in financial reporting, that is, the extent to which financial information about a company is available and understandable to investors and other market participants, plays a fundamental role in making our markets the most efficient, liquid, and resilient in the world “ (130). Transparency is about nurturing a relationship with investors. In today’s world transparency goes beyond just allowing interested stakeholders to look inside the corporation. Transparency demands active disclosure, communicating information in a timely and...