Importance of a Global Approach to Regulating Corporate Governance Essay

Importance of a Global Approach to Regulating Corporate Governance - Essay Example Multi National Corporations needs to introduce excellent business practices, enhance their decision making and give valid reasons for people to invest in the company. Many companies around the world have failed due to lack of proper corporate governance. The global crisis is an example of how failure of executive and boards to manage the financial institutions, banks and other organization using proper corporate governance. The corporate governance problems are mostly experienced in countries where legal environment provides incredibly few corporate government strategies and practices, few shareholders right and few disclosure requirements. Companies can efficiently compete, and the economies can prosper well if they adopt the practices, and strategies recommended by International Corporate Governance Network. Multi national corporations should ensure that the shareholders exercise the rights through effective and open conversing and communicating information as well as engaging them in general meetings. This will be very useful and effective as it will lead to growth and expansion of companies. Transparency and disclosure of material matters concerning the Multi National Corporations should be balance and timely. Everybody interested in the company gains confidence because he or she will note the areas that need improvement or are well managed. Multi National Corporation should be aware that, disbursement of resources in proper corporate governance will inexorably bring good returns on investment and hence the corporations’ survival. They will be very successful when they adopt and implement good corporate governance strategies and practices. INTRODUCTION As corporate governance persists to be an area of spotlight for most companies especially Multi National Corporation, there are many issues and questions that firms still fight with:Â   what it is and what it is concerned with; the reason many governments and firms promoting advanced tactics in corpor ate governance (Ghosh and Chakraborti, 2010). Corporate governance is how the companies or firms make decisions, how they manage and organize themselves and how they converse with shareholders and the entire world. It deals with issues like how executives and boards are chosen, what responsibilities and mandate executives and boards have, whether shareholders and stakeholders have rights to get involved in some types of corporate decisions through participating in voting and if they have, what form they take. These issues are crucial because they endorse excellent business practices, good opportunities and decision making for investors to make certain the integrity of their investment. Since these issues are very important to improving and developing good businesses and best businesses environment, policy makers and companies are much interested in ensuring that excellent corporate government is widely adopted and is successfully institutionalized throughout the firm. Many companies and firms identify that good corporate governance is a good business strategy and good commerce practice (Bitanga and Bridwell, 2010). What many companies are focusing on is to advance their businesses specifically in the promising global market place where companies are repeatedly trying to outdo each other to ensure their businesses are effective and to magnetize new investors. Companies and firms especially the well managed ones, want to introduce