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Corporate Governance

March 11th, 2011 Comments off

You may think that corporate governance and corporate social responsibility (hereafter CSR) are refering to the similar definition. For academicians, however, both have different focus of study. While CSR is more related to business strategy and its performance to deal with social and environmental issues, corporate governance is usually developed with the primary objective of protecting the rights of shareholders in listed companies. Primarily it concerns to shareholders with access to limited information.

Most of the recent reforms in the US and the UK were certainly designed to give shareholders greater protections, or to restore investor confidence in the capital markets, as well as more protection to directors, management and auditors. In some practical activities, corporate governance has been displayed to the following firms’ strategies.

  1. Provide appropriate right of access to information
  2. Improved disclosure
  3. Internal controls and disclosure control
  4. Enhanced shareholder activism

Source: Mullerat, Ramon (Ed.). 2005. Corporate Social Responsibility: The Corporate Governance of the 21st Centruy. Hague, Netherland: Kluwer Law International.

*enjoying study in the cyber room with friendly mates during Spring 2011 vacations. Love it much ^^*

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