Corporate Structures and Governance Arrangements Vary Widely From Essay

Corporate Structures and Governance Arrangements transfer Widely From Country to Country - Essay ExampleIn normal parlance, the embodied presidency (CG) has devoted more emphasis on disclosure, internal mechanisms and transparency with much focus to the financiers of the business. As per OECD (2004), this does not entail that the significance of stakeholders in general is deprived off1. Initially, Jensen and Meckling (1976) advocated stakeholder theory and then followed by Freeman (1984) who advocated an agency opinion of function. Enron scandal resulted in the introduction Sarbanes-Oxley Act of 2002 which is a chief chapter in the vibrant annals of Anglo-American corporate governance renaissance2. As per OECD, managerial accountability elucidates governance responsibilities and roles and to take hold sure that shareholders kindle and managerial interest are lined up and supervised by the board of directors3. The term managerial accountability can be defined as an understan ding of a cluster of desired and preset yardsticks by which employees and management alike, which can be gauged to be held responsible for specific actions or decision tete-a-tete some clearly explained role or responsibilities in a company4. As per Fisher(2004), the managerial accountability is zippo but the delegation of power which means of integrating relationships between institutions , demarcating responsibilities , improving legitimacy , controlling federal agency , and finally promoting democracy within a company and thus , the main goal of developing accountability is establishing trust in governance institutions in companies. In UK, the Cadbury Committee was asked to review those features of corporate governance peculiarly pertaining to financial reporting and accountability as early in May 1991. This research essay willing analyse in detail how the managerial accountability remain the same under corporate governance across various jurisdictions with particular emphas is to the USA , UK and Germany. Analysis What is Managerial Accountability? Stanton (1997) refers Rosenfield finding on accountability as the reasonable holding of one to be liable for personal decisions or to make a rejoinder to a charge where justiability is being ushered by an authority affiliation between the individuals concerned. From both perspectives, the authority relations can be respected by two angles namely the stakeholders theory and the shareholder-value maximization theory. As per Spira (2001), business organisations and individuals are discharged of their responsible obligations by disseminating the required information on a periodical basis to interested parties5. Business accountability connotes making the management of a company accountable for its performance and it includes making of business decisions on the proper usage of executive authority. Such business model can be employed only when the specific information is available. Further, accountability make s certain that the demeanour is compatible with the objects of the business, that it is consistent with the conditions that steer the companys policy. In a way balancing the impact of the spread out market, which sets out prices and evaluates the real margin, a system of accountability offers objective yardsticks for administers and consulting performance. To evaluate the managerial accountability, it is necessary to assess the individual performance periodically whether it is the individual director, CEO, the outside auditor, the entire board or its officers and