Corporate Governance has many definitions that academic and business professionals defined. However, in simple words, we can understand that governance is a set of processes, customs, policies and laws that control the corporation. Corporate governance is the most important key in business nowadays, mainly after financial crisis. The financial crisis pointed out many corporate governance failures.
According to the organization for economic co-operation and development (OECD), they reported that financial crisis can be connected to failures and weaknesses in corporate governance plans which didn't help a security against uncontrolled risk that was their purpose. Moreover, the author suggests two keys. For example, he suggests providing a wider of the qualified board monitor and strong risk management to financial institutions. He mentioned OECD to re-examine the sufficiency of its corporate governance principles. He came up with those hints because of the weaknesses in corporate. There are some weaknesses. For example, because of the poor corporate governance procedures, the risk management systems have failed. Secondly, boards had agreed a strategy but they didn't keep under observation if this strategy implements or does not.
As stated by International Monetary Fund report on the Kuwaiti financial system, on 2004, the report points out, "Corporate governance principles have not yet been fully addressed in Kuwait and serious gaps remain." However, according to the Zain Telecommunication Company in Kuwait, Zain believes that companies with expert and positive arrangement to corporate governance are stronger and have a huge record of performance. Moreover, it believes that effective corporate governance has a positive impact on its corporate. For example, a successful corporate governance will improve in long-term their stakeholders and primary serving the public interest. In addition, Zain indicates some corporate governance practices, such as full...
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