EFFECTIVE CORPORATE GOVERNANCE
Pret A Manger Ltd.
The importance of responsible Corporate governance
The regulatory requirements that shapes the effective corporate governance in regulated company The impact of regulatory requirements on pret A manger stakeholders interests Conclusion
Pret a Manger was opened in Hampsted, London, UK in 1984 by Jeffrey Hyman.
The Pret A Manger is UK based international fast food chain organization which operates its business worldwide mostly in the UK, the USA, Hong Kong and in France.
This is considered as one of the mainly huge fast food provider in the planet.
The food is free from chemicals which organization makes handmade foods, stabilizer and preservatives.
Revenue of £17.32 million, return on sales of £3.1 million and 16% supply chain increased.
The framework of rules and practices by which a board of directors ensures accountability, fairness, and transparency in a company's relationship with its all stakeholders (financiers, customers, management, employees, government, and the community).
Corporate governance has also been defined as "a system of law and sound approaches by which corporations are directed and controlled focusing on the internal and external corporate structures with the intention of monitoring the actions of management and directors and thereby, mitigating agency risks which may stem from the misdeeds of corporate officers. [Sifuna, Pacy (2012)]
It is a method of governing the organization similar to a ruler state, instating its personal customs, policies and laws to its employees from the highest to the lowest levels.
Corporate governance Refers to the internal and external factors which defined by the officers, stakeholders or institutions of organization.
The Importance of responsible
Corporate governance is the way to corporation polices . It is a method of governing the company like a sovereign state, instating its own policies, customs and laws to its employees from the highest to the lowest levels. Corporate governance is intended to increase the accountability of any company and to avoid massive disasters before they take place. Glowing executed corporate governance have to be comparable to a law enforcement department’s interior relationships unit. A Corporate governance framework establishes the mechanism where achieving accountability between the stakeholders. It protects the interest of relevant stakeholders.
Principles of corporate governance
Corporate governance principles raised in three documents which has been released in the year from 1990: The Cadbury Report (UK, 1992), the Principles of Corporate Governance (OECD, 1998 and 2004), the Sarbanes-Oxley Act of 2002 (US, 2002).
The Cadbury and OECD reports described the general principles of businesses are look forwarded to operate to confirm the proper corporate governance. The Sarbanes-Oxley Act, informally known as Sarbox or Sox, is regulate by the federal government of USA to the legislation of several principles recommendation in the Cadbury and OECD reports. These principles are:
Rights and equitable treatment of shareholders
Interests of other stakeholders
Role and responsibilities of the board
Integrity and ethical behaviour
Disclosure and transparency
THE REGULATORY REQUIREMENTS THAT SHAPES THE EFFECTIVE CORPORATE GOVERNANCE IN REGULATED COMPANY Effective governance enables every organization’s board and executive to act effectively and deliver an appropriate strategy to share a perfect understanding of the related risk engagement and to establish a robust control framework to manage risk effectively across the business. Controls and processes of this structures should enable the executive to implement and monitor...
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