Corporate governance and audit Coursework Example | Topics and Well Written Essays - 2250 words

Corporate governance and audit - Coursework Example Therefore the government decides to reduce this theory for minimizing the problem of principal agent and also reducing the direct and indirect cost involved for ensuring that the agents behave in accordance with the principles. The report that has been established by the UK committees of corporate governance includes the stakeholder theory that not only generates the wealth of the shareholders but also takes into consideration a wide group of stakeholders. The transaction cost theory that not only emphasizes on the wealth of the shareholders but effective accomplishment of the transactions. a) The scandals of the corporate governance in the light of UK regulatory development can be explained as it facilitates innovation in which it allows the companies to implement new ideas, avoiding of box ticking in which the companies are allowed to complying with the principles and proportionality and long term learning for adopting cultural change in the companies for fulfilling the objectives and principles of corporate governance. b) The main objectives of OECD code of the corporate governance are to improve the institutional, legal and national framework required for the corporate governance. It focuses on improving the growth and development of the companies. The underlying principles of the OECD code of corporate governance are that it serves on the basis of the OECD and non OECD countries of the world. The principles mainly focus on the stock market listed companies that will contribute towards improving the corporate governance of the private companies. The principles deal with the transparent market, efficient market and also well regulated market. The main objective of the shareholder theory is maximization of wealth of the shareholders. The shareholder theory is subjected to minimum regulatory and government intervention in the business operation.

The spread of global communications technology, such as the Internet, Essay

The spread of global communications technology, such as the Internet, has lead to a worrying trend of Westernization in countri - Essay Example The countries, which this growth of the internet has largely influenced, have also experienced an immense degree of westernization in several aspects, especially in culture, politics, and business. These influences however, have been stealthy in their arrival. The people of the countries influenced need to compare their lives with how they were in the past to realize how much of western culture has now become a part of their lives. The most dominant influence is perhaps the influence that has set in on the daily lives and culture of these countries. This includes several aspects of the culture, such as the food, fashion, language and ethics of these countries, each of which now have a ‘modern’ western touch to them, no matter which country the culture belongs to (Abdullah, pp. 22, 2007). While countries and regions are usually famous for their traditional dishes, which people have passed down from generation to generation over decades, some of the most popular foods in t hese countries happen to be fast food, which is prepared in western style. In other words, the food items, which are most common in the west, such as burgers and fried chicken, are now famous throughout the world, both under multinational brand names and local brands. To pin this effect down to the internet entirely may be unfair, as some of these multinational brands were able to penetrate the borders to these countries before the internet was developed to such an extent (Munck and Fagan, pp. 20, 2009). It is however, due to the internet, plus other forms of global communication like internationally televised media, that this sort of food is now amongst the most popular food items across the country. The advertisement that these brands receive through the internet is an effective source of popularity for these multinationals who sell western food to several countries around the globe. Examples of such multinationals, like McDonalds and Kentucky Fried Chicken, both of which are bran ds who have seen immense growth in their international sales ever since this advertisement picked up speed. Not only does this advertisement make consumers in each country eager to try this food, but it also encourages the local suppliers in these countries to produce the same food as competition for these multinationals. These local brands are often a success because they are able to produce food of similar quality but at cheaper prices. This leads to additional promotion of these western foods due to the internet. The media also helps promote these foods as it not only shows commercials for these products, but shows characters on different television shows consuming these foods as a part of their daily lives. This is a significant reason why these western foods gain popularity so fast and become part of the pop culture in several different countries (Mooij and Mooij, pp. 12, 2010). In a similar manner, other aspects of culture like clothing, language, and music have also leaked fr om the US to other countries. They receive promotion on the internet as well as through popular American television shows, which the US televises internationally. In addition, experts have proven a link in between watching satellite television and developing a materialistic mind (Abdullah, pp. 22, 2007). There is a lot of implicit advertisement of brands through these shows. Other than this advertisement that different brands do, there also the simple effect of young impressionable people seeing certain clothes or hearing a