Philosophy 2074F/G Chapter 8: Chapter 8 Reading Notes.docx
18 Apr 2015
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A company with strong governance mechanisms could have validated the assets and transactions in question, disproved the accusations and continued with business as usual: sino forest"s lack of transparency and inability to easily disclose the complex web of relationships between its suppliers, its intermediaries, chinese governmental organizations and offshore entities are examples of a colossal failure in governance. Corporate governance definition: corporate governance refers to the controls put in place that ensure that a corporation acts in an ethical, legal and transparent manner in the best interests of its shareholders and, to an increasing extent, involves the consideration of the interests of all of its stakeholders, effective corporate governance greatly reduces the chances of ethical transgressions or the negative ethical consequences that may arise from a laxity of oversight and control, corporate governance can also be defined as a relationship among stakeholders that is used to determine and control the strategic direction and performance of organizations.
