Sunday, November 3, 2019
Corporate Governance and Company Performance Coursework
Corporate Governance and Company Performance - Coursework Example Whether corporate governance is good for a company is a question that needs critical considerations. This question is often answered by the situations in the marketplace in terms of the results of the companies that strictly follow corporate governance. Sometimes corporate governance can be injurious to the organization. Sometimes the company may miss opportunities because of some aspects of corporate governance leading to costly liabilities. For this reason, as good as corporate governance is, sometimes it is good to leave the directors at liberty to decide on some issues away from the stringent corporate governance requirements. When such decisions are made, the directors should be given an opportunity for explaining the rationality of their decisions and justify the outcomes of such decisions. Due care is for this reason of the essence taking into consideration the probable impact of certain decisions not consistent with corporate governance on the shareholders. Such decisions cou ld lead to resentment from the shareholders making them flee in case of undesirable outcomes of decisions inconsistent with corporate governance. However, when such decisions lead to satisfaction within the company stockholders, they would be for the betterment of the organization and value for stockholder's investments.Highlights of Corporate Governance Benefits against Company PerformanceCrook says that significant implications for the growth and development of an organization are attributable to corporate governance.