Feoci-Case Analysis

Corporate governance can be referred to the rules, processes, or laws by which businesses are operated, regulated and controlled. It can also refer to internal factors defined by the officers, stockholders or constitution of a corporation. After finding the meaning of Corporate governance, which can also be referred to corporate responsibility, I thought about the policies in which the company I work for have. I work for Northrop Grumman, which is one of the leaders in global security.

Corporate governance is based largely on trust – the trust, by the stakeholders, that revenues will be fairly shared, and that those directly involved in running the company are running it in an aboveboard, honest, and open manner, and that they represent the best

The concept of Governance is simple the system designed to control and distribute power within an organization. According to Hoel (2011), good corporate governance involves having a good leadership structure and the complex system of incentives, checks and balances that makes sure that the organization creates long-term

Corporate governance is the rules in which companies are controlled. This governance essentially balances the

Corporate governance is a set of actions used to handle the relationship between stakeholders by determining and controlling the strategic direction and performance of the organization. Corporate governance major concern is making sure that the strategic decisions are effective and that it paves the way towards strategic competitiveness. (Hitt, Ireland, Hoskisson, 2017, p. 310). In today’s corporation, the primary objective of corporate governance is to align top-level manager’s and stakeholders interest. That is why corporate governance is involved when there is a conflict of interest between with the owners, managers, and members of the board of directors (Hitt, Ireland, Hoskisson, 2017, p. 310-311).

A decade ago, the term 'corporate governance' was barely heard. Today, it's like climate change and private equity, corporate governance is a staple of everyday business language and capital markets are better for it (ASX 2010). Therefore, corporate governance can be defined as a term that refers broadly to the rules, processes, or laws by which businesses are managed, regulated, and controlled. The term can refer to internal factors defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as consumer groups, clients, and government regulations (Farrar, 2009).

The implementation of an effective corporate governance framework can contribute to better performance and market valuation of shares.

Corporate governance can be defined as the process, customs, laws by which the affairs of a company are managed and controlled it also

Competitive business environment and appropriate good Corporate Governance have a nexus, the former fuelling, influencing and impacting the latter and the latter seeking to meet the challenges of the former. For Corporate Governance, inhering Competition principles in policy making would appear sine qua non. Corporate Governance consequently needs to fashion itself to meet Competition and prevent enterprises indulge in (inadvertently or otherwise) anti-competitive practices. Corporate Governance needs to incorporate the interests of consumers and economic development. Competition maximizes incentives to innovate, engage in new promising activities, offer better services and wider choices at lower prices. The continuous quest for efficiency and improvement is not merely a result of the competitive process, it is the competitive process, where companies- small, medium-sized or large- concentrate on becoming as efficient as possible, rather than on surviving by other (illegal) means, their competitiveness will increase whether they operate in their domestic market or in the worldwide stage. Competition law understood the need of good corporate governance for fair competition. The need for implementation of good Corporate Governance strategy is not only social, but there are good economic reasons also. The Companies possessing Governance practices are more likely to gain a competitive advantage over their counterparts. The benefits that

Companies are becoming more involved with corporate governance and they are following more strict rules and guidelines. One major problem is how board members are being elected. Avoid employees for the company seems to be one way to eliminate poor corporate governance committees. They have to try to keep the chief executive officers from loading the board with friendly directors that are close to them. The most difficult change will be electing board members. A major

The benefits are real and measurable. For one, good governance leads to higher market valuation. Buenaventura, a Peruvian company, managed to improve its corporate governance and the CEO estimates that these improvements resulted in an additional 20 per cent increase in market valuation. Better corporate governance also decreases the cost of capital and helps to attract and retain shareholders. Credit Suisse raised its valuation of Brazil Telecom from “hold” to “outperform” because of governance improvements.

Corporate governance is a system that ensures companies are directed and controlled (Roberts 2016a). Boards of directors are essential for companies, because they have the obligation to governance the whole company and draw up long-term scheme to make it success (Roberts 2016a).

Good “corporate governance" is synonymous with “good business management”, that reinforcing surveillance systems, management and administration of a company, making them efficient, effective, honest, transparent and democratic. A company with high quality management will have access to financing (public or private) in better conditions and terms. Make appropriate business decisions to reach a higher level of accounting transparency, more efficiently manage business problems, and gives people, who are not involved in decision making, guaranteed that their interests are well protected. But the most important, perhaps, it is a good implementation of "corporate governance" will be translate into a company more ordered, correctly planning of their strategies and objectives, in addition to strength, liquidity and highly competitive.

Corporate governance is also the way a corporation policies itself. The method is governing the company like a sovereign state, in stating its own customs, policies and laws to its employees from the highest to the lowest levels. Corporate governance is intended to increase the accountability of the company and to avoid massive disasters before they occur. Well-executed corporate governance should be similar to a police department’s internal affairs unit, weeding out and eliminating problems with extreme prejudice. The corporate governance mechanisms provide assurance that the people who sink in the capital will get back the return on this capital.

The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company objectives are set, and the means of attaining those objectives and monitoring performance. Therefore, the overall purpose of good governance: to assist organisations to achieve their strategic objectives.