McBride Financial Services - Transparency in Corporate Governance University of Phoenix
May 4, 2009
Transparency is imperative with respect to corporate governance due to the crucial nature of reporting financial information to maintaining investor and consumer confidence. The lack of devotion to corporate governance policies will send the message that the company is unbalanced and the leadership is not incorporating the highest level of integrity with change initiatives. The importance of integrating financial reporting, auditing processes, developing clearly outlined information on the roles of the CEO and board of directors is part of the transparency philosophy that can impact any organization. McBride Financial Services must develop and implement a corporate governance system that will not only satisfy the organizational objectives but the stakeholders as well.
In order for Hugh McBride, the CEO of McBride Financial Services, to alleviate potential problems a well thought out plan needs to be implemented to sustain the business for longer-term with capabilities of becoming financially stronger. The leadership within an organization has to maintain a corporate culture that integrates ethical decision making approaches to stick to corporate governance rules. Additionally sustaining a balance of power between the executive management including the CEO and the board of directors is crucial for reinforcement of stability in the corporation. Ensuring that corporate governance is being included in all procedures at McBride Financial Services, Hugh McBride has to set the tone by ensuring that the Sarbanes-Oxley Act (SOX) is being upheld which can be interpreted by stakeholders as strength and stability of the corporation. Since publically held companies have to comply with this law, ensuring that his executive management has a thorough knowledge of this mandate and other governmental regulations can avoid problems with compliance.
McBride Financial needs to incorporate business practices that are at the highest level of corporate governance conformity. The issue of not adhering to corporate governance regulations has led to the downfall of some of the most reputable corporations of the 21st century. In order to not follow the same path Hugh McBride has to establish doctrine on governance practices that have long been adhered. The value of integrity and truthfulness should originate in the CEO and should additionally be entrenched in the corporate culture. “Improving practices and procedures in corporate governance that, to varying degrees, provide the basis for strengthening a board’s ability and motivation to monitor managerial performance,” (Chew & Gillan, 2005) Hugh McBride has the responsibility to lead the efforts on approaches that integrate values and ethical decision making processes in the corporate culture. Securing this path can be facilitated by assessing the possible risks that can evolve from integrating alternative solutions and mitigating risk. Two areas of focus are outside auditing controls and formalizing the role of the human resource department in direct relation to procedures and regulations that have to be complied with. Integrating a risk management structure that is set up to deal with issues that arise in adhering to regulations set forth by government institutions and maintaining high standards of fiscal management can assist with preventing mismanagement. A structured financial reporting system executed by the leadership and management board can assist with perceived strength in the financial business market. One of the primary targets for Hugh McBride is to maintain an auditing system to ensure that corporate governance issues are being mitigated. Part of this system should establish bylaws that specify the current and future roles of all corporate stakeholders especially the roles that the CEO, the executive management...