How do you contribute to the effective governance of an organisation Essay

How do you contribute to the effective governance of an organisation in your role of a management accountant - Essay Example (Colley et al., 2005) Aside from discussing the universally accepted roles and responsibilities of shareholders, board of directors, and the CEO; corporate governance is often used as a policy for business organization in relation with the actual structure of the board, the activism of the shareholders, and overall business performance (Aguilera et al., 2008). As part of our organizational policies and procedures, the board of directors behind the business organization plays a crucial role in the success of corporate governance aside from the increase in the company’s profitability and overall business performance by continuously hiring and firing the company’s top management (Nordberg, 2007; Kim & Nofsinger, 2006: p. 41). In line with strengthening the corporate governance, the company’s executive and non-executive directors are responsible in making important objective business decisions for the best interests of the company (Mallin, 2007: p. 125). The only way for executive and non-executive directors to perform their duty effectively is to have an access to the company’s business information. (Waldo, 1985: p. 5) Therefore, the board of directors are required not only to carefully analyze the corporate financial report but also to meet regularly to discuss the proposed strategic plans and issues that will significantly affect the success of the business (Solomon, 2007: p. 103). Since business’ shareholders are also the owners of the company, these individuals have the authoritative power to manipulate any forms of legal or illegal transactions that will occur in the business (Romano, 1996). For this reason, executive directors are encouraged to take advantage of their rights to look through the company’s official documents. In the process of going through the company’s financial statement, executive shareholders should take note of any signs of unusual business