Transparency in Corporate Governance Paper
Edward Thaxton
University of Phoenix
MMPBL/570
Corporate Governance
April 18, 2011
Milton Luoma
Table of Contents
Introduction………………..……………..……………….….….....……………..… 3
Concept of Transparency………………………..………………….………………. 3
Self-Interest of Management……………...…….……………….….………………. 4
Conclusion………………………………..………………………….………………. 7
References….……………………………..………………………….………………. 9
Transparency in Corporate Governance
Corporate transparency is a term that reflects the idea that the more information is disclosed about organizational activities in a more timely fashion to a wider public the better it is. Corporate transparency is important because it is one of the theoretical conditions required for a free market to be efficient (12Manage, 2011). Businesses in the United States and worldwide are overcoming the financial corruption and fraudulency of earlier decades. Reporting financial information to investors and consumers requires transparency and compliance because of the critical nature those reports have to an organizations reputation as well as consumer confidence. The lack of devotion to corporate governance policies will send the message that the company is unbalanced, and the leadership is not incorporating the highest level of integrity with change initiatives. McBride Financial Services Incorporated (MFSI) is evaluating the concept of corporate governance transparency. MFSI needs to reduce the relationship between the Chief Executive Officer (CEO) Hugh McBride’s self-serving interests and effective policies to provide transparency and compliance to create shareholder wealth.
Concept of Transparency
MFSI is a public trading mortgage lender that has attracted an investor, Beltway Investments to purchase shares of the company. Beltway Investments wants MFSI to deliver the best practices in corporate governance (UOPX McBride Scenario, 2011). Good governance rests on the issue of...