of putting sensible people in leadership positions to guide the affairs of the company and
the role of the CEO and Chairman are also analysed. Finally, the effects of remuneration
and incentives on such members at the top of the corporate ladder; do they improve
governance or pave the way for greed, materialism and selsh board interest?
I also briey analyse the role of women in top managerial positions and the theory of
ethnic diversity in the twenty-rst-century governance. Does the role of women pay and
do we get better results in decision-making? A look at shareholders, especially
institutional shareholders, is highlighted. We analyse their role of ownership and
control, their inuence in voting rights and what the twenty-rst century might do to
shareholders and their voting powers during the Annual General Meetings (AGMs). Are
such meetings becoming boring and a mere façade to board room control and majority
shareholder “muscle power”? How does information inuence insider dealing and affect
accountancy, transparency and trust by stakeholders on the corporation? Can the
twenty-rst-century governance curb such abuses?
I also provide a brief insight into major multi-national corporate collapse. The Enron
case, for example, highlights how such mishaps can be avoided to rekindle trust and
transparency, as well as disclosure to authorities, shareholders and the public. This is
highlighted in the paper by citing approaches taken by auditing rms, associations and
The role of creditors, which is somewhat ignored until the corporations are
approaching bankruptcy, is seen as an area for concern and reform. With banks,
insurance rms and pension funds being key sources of nancial sustainability to
corporations, the need to protect their interest by making stiffer penalties and training
those with responsibilities in looking after, investing and managing wisely on behalf of
shareholders is discussed and criticised.
I also look at how public interest and consumer interest plays a role in corporate
existence by analysing an inevitable change in the twenty-rst century from absolute
corporate control to public/consumer control and inuence in areas like environmental,
ethical and employee protection and recognition. The emotional side of a corporation is
brought to life to win the hearts of consumers and the public. We see how this fares in the
light of prots and long-term Environmental Management Scheme (EMS) investment.
With all these aforementioned factors, which tend to adjust CG in the twenty-rst
century, we then, in simple reference format, compare and correlate governance in
different nations and view how the American economy inuences world governance by
affecting and inuencing other nations to shift from a relationship-based economy to a
market-based economy. Is this good or bad for CG in the twenty-rst century?
Issues of poor accountancy/auditing practises, corruption and poor governance
practises amongst others are discussed as being the retarding factors to corporate
success in those nations.
Finally, I look at socio-political systems to understand and appreciate whether CG is
a product of heightened interest in corporate activity. Can a nations system of
governance affect how the public view corporations and corporate interests?
We look at the context of what governance is all about, how major corporations affect
the everyday life of an individual, the element of utility, the buying power of consumers,
the returns they get from corporate investments and whether the public can do without
corporate entities – in other words, the clash of corporations over nationalistic/socialist
acceptance. A preview on the negative side reveals aspects like bad governance,