OXFORD BROOKS UNIVERSITY
B Sc HONOURS IN APPLIED ACCOUNTING
RESEARCH AND ANALYSIS PROJECT.
MD Ahsan Habib
1.1 Executives summery
2.1 Reason behind the choosing this topic area:
The topic on assessing and evaluating the corporate governance on a particular company. Recently corporate governance issue for the global business in raising on focus like on print and electronic media, the press and regulatory authority most specifically after the world recession 2007-2009 and some big corporate scandal like Enron Energy Company in the US. This topic is very high level in knowledge and that can cover all areas of the business and also this aspect is very important to all stakeholders of the business. As a professional Chartered accountant I think I should have sound knowledge on this area. In global modern business environment the demand and necessity of Corporate Government is increasing day by day. So I think the project topic will allow me to understand and achieve the detail knowledge on it.
2.2 Why I choose the company called Mark and Spencer (M and S)
Mark and Spencer is the UK top retail company which is ideal in the aspect of Corporate Governance. Now a days M & S is the good example for best practice of Corporate Governance in the UK although in the past it had some debate in the board and its structure. All of the customer love M and S products and they are very loyal on it because it strongly followed corporate social responsibility including Corporate Governance issues and greater stakeholder’s aspects. Mark and Spencer is one of the best ideal company that is reported in their annual report all aspect of the governance and all other relevant dada is also available in the report. 2.3 Why Corporate Governance is important
Definition of Corporate Governance:
Corporate Governance is the system by which a company directed, administrated and controlled. OECD Principals
Corporate Governance can be defined as: a set of relationships between a company’s directors, its shareholders and stakeholders. It also provide structure through which the objectives of a company are set, and means of obtaining these objectives and monitoring performance are determined. Corporate Governance in Emerging Markets Jesus Estanislao President of the Institute of Corporate Directors, Philippines “Corporate governance is about performance. Corporations must deliver good results not only to the shareholders, but also to all of the stakeholders, the community, the society, and the economy as a whole.”
Corporate Governance is important because it can ensure the effective, entrepreneurial and prudent management that can deliver and ensure long term success of the company. By the absence of effective corporate governance in the company it can be failure to achieve sustainable development, goals and objectives and that ultimately result corporate failure. By following the appropriate corporate governance policy or code long term strategic decision making, corporate risk management, and monitoring the management effectiveness will be and as well as corporate reporting will be more effective. It also can reduce the risk of corporate failure of a company. The governance mean the board is the guardian of a company that can ensure the effective management and long term success of the company.
Corporate governance is a set of rules that define the relationship between stakeholders, management, and board of directors of a company and influence how that company is operating. At its most basic level, corporate governance deals with issues that result from the separation of ownership and control. But corporate governance goes beyond simply establishing a clear relationship between shareholders and managers.
Good corporate governance ensures that the business environment is fair and transparent and that companies can be held accountable for their actions. Conversely, weak...
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