Transparency In Corporate Governance

Transparency In Corporate Governance

Transparency in Corporate Governance

University of Phoenix

Transparency in Corporate Governance

      Public trust is important in business. The easiest way to gain that trust is through organizational transparency. Transparency is an important aspect of corporate governance because of the crucial nature of reporting financial information to maintaining investor and consumer confidence.   When an organization intentionally disregards the laws and regulations set by the government it gives the impression that there is something to hide. This type of activity sends a message that the company is possibly unbalanced and the leadership is not incorporating the highest level of integrity or professionalism when instituting changes. The importance of integrating financial reporting, auditing processes, developing clearly outlined information on the roles of the Chief Executive Officer (CEO) and board of directors is part of the transparency philosophy that can impact any organization. If McBride Financial Services is to be successful they must develop and implement a corporate governance system that will not only satisfy the organizational objectives but also the stakeholders and customers alike.

      If Hugh McBride, the Chief Executive Officer (CEO) of McBride Financial Services, is to become proactive in alleviating potential problems become they become serious, and develop a thought out plan, which will become the foundation to sustain the business for the long-term with the capabilities of becoming financially stable. The corporate culture of an organization is a reflection of its leadership, which employees will follow in support of ethical decision-making approaches to support corporate governance rules and regulations. Corporation stability depends on a balance of power between the executive management including the CEO and the board of directors if an organization is to minimize internal and external conflict.

      Corporate governance must be...