Chapter 23: Corporate Governance: Operating as an Open Book
Corporate governance is becoming increasingly important in this era of transparency. According to Sir Adrian Cadbury, “The aim is to align as nearly as possible the interests of individuals, corporations and society.” The authors explain that governance describes the mechanisms an organization uses to ensure that its constituents follow its established processes and policies. Corporate governance prescribes the rights and duties of a corporation’s shareholders, board of directors and management. A history of trends in U.S. business that led to government regulations begins with 1912 and shows increased activity beginning in 2000 with SEC Regulation FD, continuing in 2002 with the Sarbanes-Oxley Act, in 2008 with TARP and in 2010 with the Dodd Frank Wall Street Reform and Consumer Protection Act. What is discussed in this chapter could not be more important to corporations, U.S. investors and all Americans.
Ted McDougal Biography
Kurt P. Stocker Biography