Create a 6 pages page paper that discusses analysis of governance issues creating unrest in the corporate sector.

  

Create a 6 pages page paper that discusses analysis of governance issues creating unrest in the corporate sector. Corporate governance has gained a lot of importance in the last decade as it has been deemed necessary to establish a universal code of business conduct. Corporate governance does not have a specific definition. However, it basically addresses to the same elements that are internal controls of a company, greater accountability and transparency of company’s performance, the responsibilities and structure of the board of directors and the rights and equitable treatment of stakeholders. All of this is based on moral and ethical values.The initial enforcement of corporate governance has been a difficult task. The first problem is the lack of understanding of corporate governance since traditionally there has been no culture of corporate governance. Lack of independent directors and non-effective structure of the board of directors are some other factors that contribute to this problem. These problems need to be tackled because if corporate governance is not enforced, it can lead to grave situations. This need for corporate governance arose due to a number of factors such as the collapse of major businesses for example Polly Peck and BCCI, the shift of financing to local investors, the concentration of share ownership in the hands of institutions, the need of companies for gaining confidence in the stock market of its company, privatization and the technological advances. Governance issues can create a number of problems as observed from the past. It can cause issues of integrity, financial crisis, failure of a regulatory framework and untrained directors.Let us discuss the above-mentioned issues one by one. There are several examples in which governance issues have created problems of integrity. Today the key factor in corporate governance is “integrity” which means the integrity of the company that general public perceives and holds in their eye. Today’s financial crisis due to financial institutions begs the question of the cause of irresponsible lending involving excessive risk.&nbsp.