Corporate Accountability Essay Example | Topics and Well Written Essays - 2500 words

Corporate Accountability - Essay Example This is because a well governed organisation is visualised to be effective by stakeholders and thus initiates greater investment from them in the business. Often a management structure is used by organisations for conducting their operations. The concept is used as a framework of policies with the objective of protecting outside stakeholders’ investment in the organisation. Corporate governance is used by large organisations for generating a system of balances and checks. It provides the assurance that overextending of company’s resources is not generated by any individuals or departments. In other words, corporate governance helps in preventing both frauds and abuse from employees (Vitez, 2010). In this research paper, the various dimensions of corporate governance policy frameworks will be discussed with reference to followed principles in the UK and the US. ... ollow a market-based approach that provides flexibility to the companies in organising and exercising their responsibilities, while simultaneously ensuring their shareholders proper accountability. The accountability is maintained in the UK through â€Å"Combined Code on Corporate Governance† that works on the basis of ‘comply or explain’. This approach makes the judgments easy that is to be presented case after case. This form is supported by investors, companies and regulators in the UK and has been adopted in other financial markets as a model. The approaches in the UK towards corporate governance provide high standards combined with relatively lower costs of association. The board of the UK corporate governance presents assessment of position of the company and provides accountability for maintaining sound internal control system. The board is responsible for maintaining shareholders’ contact for understanding their concerns and opinions (Financial Repo rting Council, 2006). The code of the UK corporate governance consists of five main sections, namely, leadership, effectiveness, accountability, remuneration and relations with shareholders. With respect to leadership, companies are initiated to be lead by an effective board consisting of both executive as well as non-executive directors. In complying with the code ‘effectiveness’, companies should have an exact balance of experience, knowledge and skills. For pertaining to accountability, there should be proper assessment of the prospects and position of the companies. In case of remuneration, the payments of directors should be sufficient enough for attracting qualified candidates and lastly, the companies should bear a dialogue with shareholders on the basis of mutual understanding about its objectives

Investment Paper Research Example | Topics and Well Written Essays - 1500 words

Investment - Research Paper Example I am not a risk adverse person which implies I am willing to assume risk. The stock that I selected to purchased stocks was Advanced Cannabis Solutions (CANN). On February 4, 2015 I purchased $100,0000 on CANN stocks. Advanced Cannabis Solutions is a company dedicated to the rental of commercial space and equipment to companies dedicated to the regulated marijuana industry. The corporate headquarters of the firm are located in Denver, Colorado. The chief executive officer (CEO) of the firm is Robert Frichtel. The companys executives are reasonably paid in this early stage of development of the company. The salary of the CEO is $125,000 a year which is relatively low considering that most CEO of public companies in the United States make millions of dollars per year of compensation. The firm targeted service is to provide leasing space for players in the cannabis industry, but the firm also offers consulting services for its clients including agricultural expertise, logistics, and distribution. The firm is currently targeting its home state of Colorado. In 2014 marijuana sales were expected to reach $540 million. The national legal marijuana market is currently worth between $2-3 billion, but by t he year 2018 this market is expected to grow to $6 billion. The legal cannabis market is an emerging market that has the potential to grow exponentially as more states begin the legalization process of marijuana. Currently three states, Washington State, Colorado, and Alaska have legalized marijuana for both medical and recreational purposes. In these three states the consumption of recreational marijuana is going increase drastically as the drug continues to gain social acceptance. On February 23, 2015 Alaska became the third state to legalize marijuana consumption (Abcnews). Currently the legal marijuana market has only penetrated 6% of the U.S. States. Further penetration is expected and eventually once the Federal government approves weed then