Whenever a company faces problems such as corruption issues, fraud issues, etc it is natural that the company lacked corporate governance. In this article, we will discuss about corporate governance which can be used for implementing strategies in a company. It is one of the strategy tools that help in ensuring proper conduct and transparency of company policies.
History of Corporate Governance
Corporate governance became familiar after the collapse of the energy company Enron and the WorldCom in 2001 and 2002. The collapse of these companies brought the internal activities of these companies to public scrutiny.
The Beginning of Corporate Governance
Companies started forming in the industrial age. At this point of time lack of ethics and greed among owners was rampant. Company executives took advantage of the gullible nature of customers, employees were often poor and those who invested money in the business lost money. It was thus, clear that in order to protect the interests of stakeholders the introduction of laws was important.