Dear Burkie,
As mentioned before, your question was very vague. Let?s start with a
working definition of what is corporate governance:
?Systems and processes for ensuring proper accountability, probity and
openness in the conduct of an organisation?s business. [This site also
adds, since it is an NHS site, that:] Corporate Governance is a core
responsibility of all NHS organisations including PCTs.? (Source:
Gloucestershire Hospitals NHS Trust
http://www.gloshospitals.org.uk/acutetrust8.html). [Please note, that
if you type the full question in Google?s searching page, you?ll
receive definitions above the results
<://www.google.com/search?hl=en&lr=&ie=UTF-8&oe=UTF-8&q=%22what+is+corporate+governance%22+>
).
Now, you?re asking, ?how much is enough??
This is an interesting theme. I am not sure that corporate governance
level is measurable in the way that you?ve mentioned. There are basic
principles that should be met, in order for a corporate governance to
be effective. That should be the first element of reduction. Without
these elements ? namely transparency and probity ? corporate
governance could not function.
However, there is an approach, claiming that too much transparency
could project on the benefits. In that aspect, a simplistic answer
such as "when marginal benefit equals
marginal cost" might be right, although it avoids the fact, that in
the bottom line, lack of corporate governance could adversely affect
revenues in the long term, as demonstrated in the Enron case.
Read more:
=========
ROBERT EVANS ?How much is enough?? Globe and Mail, Friday, October 24,
2003, < http://english.montrealplus.workopolis.com/servlet/Content/fasttrack/20031024/CAHUSKIES24?section=Executive>.
IAAC Initiative ? Corporate Governance <
http://www.iaac.org.uk/initiatives/governance.htm.
I hope this answers your question. I searched the web for ?corporate
governance?, in order to find an answer. If you need any further
clarification on this answer, please let me know before you tip/rate
it. |
