Contents

• Introduction
• Issues of corporate governance
• Similarities and differences
• Recommendations
• Conclusion
• References

Description

With regard to success and maintenance of huge net profits in business enterprises, one of the key points is the following of corporate governance. It is a multi-faceted subject that includes a number of aspects related to corporate business. The term ‘corporate governance’ mainly refers to the set of processes, policies and legal activities that affects the way a company or corporation is directed, administered and controlled. The processes of corporate governance include the relationships among the various stakeholders involved in the business and the corporate goals for which the company is governed. In this context, the stakeholder theory denotes that specific stakeholder groups should exercise oversight and control over management (Heath and Norman 2004). Above all, the impact of a corporate governance system is very significant in the economic efficiency and effectiveness of a business organization.
This paper addresses the key issues around the functionalities of corporate governance with specific reference to several case studies conducted in four major economically developed countries including the US, China, Australia and Germany. The paper aims to develop rationalistic argumentation about the importance and functionalities of a corporate governance system based on the case studies in these developed countries. Before going into any further details, lets start looking closely at the main corporate governance issues executed by these case studies.