Month: May 2020

ROLE OF GATEKEEPERS ON THE EFFECTIVENESS OF CORPORATE GOVERNANCE

One of the key ingredients for the success of a business of any size is corporate governance. Basically, Corporate Governance is an apparatus by which the companies are governed as well as directed by the management of the business entity. Governance structure and principle identify the distribution of rights and responsibilities among gatekeepers such as directors, auditors, creditors, managers, and other stakeholders. Corporate scandals/scams of various forms have maintained a public and political interest in the regulation of corporate governance. Corporate governance assists the business entity in the improvement in self-reputation of a firm in the market as well as aid the entity to become successful in creating a positive perception in the market. Due to corporate governance chances for conflict as well as scandals diminished. Generally, good corporate governance increases the profit of a business entity, helps in the retention of the employee as well the role of the gatekeeper get more clarified. This apparatus in the age of globalization generally has the responsibility to safeguard the interest of all stakeholders. So, in this case, we are hereby going to discuss how these gatekeepers are unable to perform their function and as consequence, several scams emerged.
Keywords -: Corporate Governance, Globalization, Corporate Scams, Gatekeeper.