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Corporate Governance

Corporate Governance Case Study: mobinets


Simply described, corporate governance is about striking a balance between achieving organizational objectives and complying with applicable regulations, ethical norms, and contracts. In the short run, there appears to be some trade-off between these two sides of the scale; however, over the long run, achieving the latter actually serves the former by enhancing the company’s sustainability and control of resources, and thus shareholders’ wealth. Corporate management must ultimately realize that, one way or another, they will be “held accountable by the ‘invisible hand’ of the market and by government.”


To this effect and notwithstanding that “corporate governance is not a one-size-fits-all concept,”three common themes in the development of such governance include (a) changes at the board level and (b) improvements in management control, among a few others.

 

 

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Learning Objectives


After reading and discussing this case study, you should be able to:

 

  • build the business case for good corporate governance;
  • recognize some of the key challenges that impede good governance; and
  • identify improvements to address those challenges.

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