t and perception of different authors in critical manner.
Chapter 5: Recommendation and Action Plan- Here, specific suggestions are provided under recommendation part to a company, for resolving its issues. It provides ways by which a corporation like M&S can enhance its reputation and improve its corporate governance policies. Furthermore, it also highlights action plan which is used to conduct entire activities of chosen research.
CHAPTER 2: LITERATURE REVIEW
2.1 Role of corporate governance policies and practices
According to Bainbridge, (2016) corporate governance is the most significantly visited themes in the organizations. It is also managed and control the overall accountability of organization in proper manner.An effective corporate governance has been required the directors that could be maintain the procedure and practices of companies in proper manner. It encompasses that the executive members reporting to the broad members and aware about the daily operation that performed in the organization. On the other hand, Accountability is an essential for corporate governance to divided into the top level and lower level executive in the firm that help for maintain the entire system of checks and balances in effective manner. As per the view of Bainbridge, (2016) all the members of executive board will be having ethical duty in way of making decision which will be based on best interest of stockholders. However, corporation will be having ethical duty in protecting social welfare of others including all stakeholders and greater community as well.
Most of the people believes that companies whether it is large, medium or small establish their business with the help of many stakeholders so that maximum benefits can be availed. Apart from this, reality is that for operating business in an effective manner good governance plays a crucial role because its positive impact can be seen in the performance of an individual working in an organisation. “Corporate Governance” is single handedly a very wider concept and it further plays a crucial role in making policies and practices. Such as it help organisation in making laws based on corporate legislation, securities regulators, decisions of courts, securities laws and policies etc., As a result, following laws will help company with numerous benefits such as high performance of Board of Directors, better managed risks, strong internal controls with accountable management, well monitored and better performance.
In terms of best practice with the help of Corporate Governance, if it is followed effectively than board of directors can identify the gaps in context with ideal qualities employees have with them. Other than this, better training can be provided existing skills and knowledge of employees can be enhanced. Along with this, through Corporate Governance, certain roles and responsibilities of an individual are defined such as role of sub-group of directors committee will include functions like compensation, nominating, audit etc., Another practices which can be undertaken in Corporate Governance is that it helps in evaluating performance so that effective decisions regarding compensation that is required to be given can be made. While operating business there can be many risk that can face by companies so, Corporate Governance helps in making effective risk management plan with the help of establishing strategic leadership. Thus, managers are accountable for managing risk and monitoring the same so that effective decision can be made. Along with this, directors have an overview and show their responsibility of determining short-term as well as long-term goals and possible risk that can be faced by companies.
2.2 Relationship between stakeholder relationship and financial performance of business
According to de França, Pereira and Vieira, (2018) the organization is also planning a strategy for acting different role on internally and also select the suitable strategy for growth or development. It is a process and task that involves facts and figure at their workplace for execu