Corporate Governance Benchmark

Essay by rlundayUniversity, Master'sA, August 2010

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Corporate Governance Benchmark

Running Head: Corporate Governance Benchmark

Corporate Governance Benchmark

University of Phoenix

MMPBL/570 - Corporate Governance

August 28, 2010

Corporate Governance Benchmark

McBride Financial Services, Inc. is a relatively small company controlled by the chief executive officer, Hugh McBride. McBride needs to accept the board of directors as an independent oversight committee; instead, he wants the board to follow his lead, show the lack of corporate governance, (University of Phoenix, 2010). The adherence to corporate governance and compliance are major issues in the business world today. Essential for organizations today in the business environment concerns the concepts of corporate governance, and compliance to the Sarbanes-Oxley Act. Each company addressed in the corresponding benchmarking analysis has faced corporate compliance issues. The primary goal in each company is to make sure necessary measures implemented successfully ensure managerial accountability and transparency. In this paper, comparisons in strategy, and contrasting courses of action that have taken place.

Enron: Internal control and management procedures that support effective reporting

"Internal controls and the culture of an organization are basic structural aspects to reinforce the inherent nature of most people to do the right thing" (McCarthy, 2004, p.p. 197 -198). Enron was one of the world's largest energy companies that went bankrupt because of its bad financial practices. In 1985 Huston Natural Gas and Inter North merged creating Enron. The company was offering various services including e-commerce. Enron became the most innovative company and in the year 2000, the company earned revenues for more than $100 billion and share price of $90. Many investors thought, Enron was a safe place to invest.

"In 2001, however, Enron's success appeared to be phony. The company had assigned billions of dollars of debt and risk to subsidiary companies which then kept them off their books" (Enron Scandal). The...