Corporate governance Essay

IntroductionCorporate governance refers to a system of mostly rules, practices as well as procedures that direct as well as crack a company. In most cases it involves the balancing of completely the stakeholders that stupefy an affaire in the company including the management, sh arholders, government, the community to mention but a hardly a(prenominal) depending on the company. Essentially, incarnate governance provides a framework that if followed will assistance the company attain its objective in an all round manner.though a relatively new phenomenon, this concept has been able to take the cosmos by storm with countries that have embraced it turning in a spread of phylogenesis that their counterparts. The embracing as well as the internalization of incorporated governance by different countries has been able to foster growth and development while creating a business friendly environment in which companies apprize co-exist with the recite as well as the communities in which they operate (Fernando, 2009, p.23). suit of clothes study the United StatesAs recent as 2002, the United States enacted the Sarbanes-Oxley prick into law making it an act. This was ushered in to restore the publics bureau in companies and markets. Prior to this act, there had been a string of bankrupted high write companies that had been brought down by internal accounting fraud. This left a intertwine that ensured that the companies would essentially be governed by state laws and therefore failure due to breach of such(prenominal) laws would be answerable to the government. This ensures that not only are the interests of the company shareholders protected but that wherefore community that usually benefits from activities such as employment are also taken care off. Thus, the solid ground has over years adopted different legislations both at the federal as well as state level that ensure that corporate governance is fully realized in the state.Therefore, from the Unite d States, the UK can reckon to enact strong legislations that would act as a guidelines to both state as well as the companies and any other stakeholders of the importance of embracing corporate governance. This would also serve the purpose of regulating corporations that will then have to acknowledge the fact that rules have been put in tush and therefore have to be followed and that failure of compliance would lead to draw penalties (Chew &type A Gillan, 2009, p. 3).Case study IndiaIndia, unlike the United States, has created a delegation that deals with corporate governance know as the Securities and Exchange Board of India (SEBI). The tabular array that in most cases takes on a trustee role for all the companies in India was created through the adoption of SEBI Act, 1992. The act gives the torso statutory powers to be able to carry out its duties and functions. These approach adopted in India is believed to have been adopted from the Ghanaian principle of trusteeship and th at it is a directive of the Indian constitution with a little twist in between. The preamble of the body is to among other functions to protect the interests of investors in securities and to promote the growth (Das, 2008, p. 7).ReferenceChew, D. H., & Gillan, S. L. 2009. U.S. corporate governance. hot York, N.Y., Columbia      University Press.Das, S. C. 2008. Corporate governance in India an evaluation. New Delhi, Prentice-Hall of      India.Fernando, A. C. 2009. Corporate governance principles, policies and practices. New Delhi,     Pearson Education.