Corporate Governance

What is Corporate Governance? Hmmm...it is about the way in which organisations are run and who should control them- the Chairman,the Chief Executive and the Board of Directors, Shareholders or other Stakeholders such as employees.

With the number of scandals set off by several large companies that are supposedly following ethical standards and with the leading people at the head of the company turning a blind eye, if not condoning it, it really makes investment harder for the small investor.

However, I am hoping with the increased regulations and accountability and the repercussions for people like Madoff and those who "Made off" with other people's money that company's financial statements and their Chairman and Board's utterances will be something we can place some kind of trust in. That might be long in coming but it's heartening to see that people(Directors,CEOs,etc) are not getting away with their shenanigans(a mild word in proportion to their deeds). I absolutely agreed with ths stance President Obama took on those shameless executives regarding the bailout.

It is nerve wracking when you think about investing money in the market and there is the possibility you might lose all. Then again, at home here, I have my Insurance with a huge conglomerate and they declared bankruptcy and the Government had to step in. Of course, it's the same mismanagement and greed that lead to the downfall and while the big guns get paid handsomely (for what, I don't exactly know), the rest of us are left reeling from their dishonesty and greed.

The trouble with all this, hope springs eternal and their are lessons to be learnt. When it sounds too good to be true, it usually is. I think I will still invest but naturally not everything will be going to the stock market and I will be cautious how I spend and I suppose that would be everybodys refrain now. However, for the economy to get that boost, it must come from us, by spending.

So, hopefully that thing called Corporate Governance and Ethics would all become part of the culture of organizations and those coming up the ladder of success will pay attention to the history of the financial market and these things won't be repeated.


So long,J