Improving Organisational Performance through Corporate Governance

Abstract

Corporate governance issues have attracted considerable attention, debate and research worldwide in recent decades. Internationally, corporate governance norms have been initiated through a judicious mix of the three available routes: legislation, regulation and self discipline. A world-class corporate governance system is where values are as important as rules. The need for corporate governance has arisen because of the increasing concern about the non-compliance of standards of financial reporting and accountability by boards of directors and management of corporate inflicting heavy losses on investors. The collapse of international giants likes Enron, World Com of the United States and Xerox of Japan are said to be due to the absence of good corporate governance (Machiraju, 2018) and corrupt practices adopted by the management of these companies and their financial consulting firms. Corporate governance is an important part of strategic management that can improve firm's performance. This paper is an attempt to study the role of corporate governance in improving organisational performance.