Transparency in Corporate Government


      Transparency in Corporate Governance

      Julie-Ann Smith

      MMBL570/Corporate Governance

      November 1, 2010

      Craige F. Harrison

  Transparency in Corporate Governance
        In a 1,400-1,750-word paper apply the concept of transparency to corporate compliance within the McBride organization.  Additionally, evaluate at least three instances in which the relationship between the self-interests of management relate to effective corporate governance.
      As some companies faced takeovers and buy outs, others were busy seeking ways in which to stay alive.     Prior to 2002, there was little compliance regulations for corporations to adhere to.   With the fall of chief executive officers (CEO) of large companies, the Sarbanes-Oxley Act (SOX) was created.   As that did not cover all the loop holes, states were empowered to create laws that would protect the stakeholders in public companies.   Transparency soon became the risk factor and in much demand from stakeholders and the public.

      Transparency requires above board communication between stakeholders and members of the corporation, requiring everything that relating to how the organization conducts business is   open, visible and above board.   “While well-intended, some of this zeal has resulted in companies presenting reams of information that do little to alleviate investor concern: clear and ready access to the primary risks impacting shareholder value” (McCarthy, 2004, p. 124).   McBride Financials’ CEO Hugh McBride self-interest may hamper the effectiveness of transparency in corporate governance.

Incentives vs. Fair Salary

      “Agency theory says that because people pursue their own best interests, conflicts of interests inevitably arise over at least some issues when they engage in cooperative endeavors” (Chew, 2004, p. 125).   The actions of Hugh McBride, CEO of McBride Financial Services, give...