COOPERATE GOVERNANCE ISSUES

Week 2 Assignment

Absolutely no plagiarism, must be original and very thorough. Please make sure everything is followed in the question and the grading rubric. Assigned reading articles are attached. Must include a cover page and reference page. Must include multiple (at least 3) outside academic resources with free links. Sentences should be short but thorough.

Question: Choose an example of misconduct in the financial industry. In a 4-5-page analysis paper, explain the issues of corporate governance in the face of strong incentives and weak controls. Recommend best practices to improve the firm’s ethics and compliance.

MBE540 Assignment Rubric

Answer preview

According to Council (2003), corporate governance refers to a framework of rules which are formulated by the organization to ensure transparency, fairness, and accountability between the corporation and its stakeholders. Company’s stakeholders include shareholders, the surrounding community, customers, suppliers, government and the employees. Furthermore, it offers a framework for attaining organizational objectives. It touches every management sphere in the organization as well as internal controls to reduce frauds and errors in the company. Corporate financial institutions should provide proper strategies for addressing misconduct, as well as enhance reduction of misconduct risks.  Financial institutions are expected to conduct their operation legally and ethically to avoid issues of lawsuits. Ethics allows financial firms to undertake a legitimate business as well as being compliant with government rules and regulations regardless of the locality.

Misconduct in the Financial Industry

The typical known example of the misconduct committed by financial firms such as banks is money laundering. According to Demirguc-Kunt, Detragiache, & Tressel, (2006), money laundering refers to as the process of deriving money from the criminal…