Analysis of Corporate Governance by Monks, Robert & Minow, Nell Article

Analysis of Corporate Governance by Monks, Robert & Minow, Nell - Article Example As a result, the managers strengthened the company’s governance by ensuring that their imperative efforts focused on their judicial systems reforms, property rights, and informational freedom as well as evaluating other institutions that were vital for realizing democratic market economies. In addition, Banca Comerciala Romana of Romania experienced successful cases of good corporate governance in 2004. Due to itemized corporate governance, the institution was able to access cheaper debt that made it possible for the bank and its affiliate rating agencies to access lower borrowing costs. Fitch Ratings upgraded both individual ratings and long-term counterparty ratings from C/D and BB- to D and B+ respectively. The company cited the upgrading of the ratings came because of the improvement of corporate governance. They were able to manage the bank’s risks that led to changes that brought the bank back to European Union standards hence acting as a role model for the other financial institutions in the region. Furthermore, good corporate governance brings success in companies since it helps facilitate profit-making operations. With good corporate governance, investors will not just assume whether the company will perform better, but knows it will perform best due to better corporate governance (Monks & Minow, 63).  Ã‚   According to the study, the companies transformed due to affirmed systems of good corporate governance. The refining and developing of standards of corporate governance often followed cases of failures within the subjugated company. For instance, in the late 1990s, there were bursts of high technology bubbles associated with telecommunication companies. As a result, there was the development of interests by both brokers and analysts that led to conflicts, underpinning the ability to introduce the principle that would bring advice and analysis into the new system of corporate governance. Enron is one of the companies that felt the heat of failed corporate governance as it pointed the source of its failures to the auditing committee. The auditor and audit committee was an independent body thus mistakes involved during corporate governance application led to deficiencies due to failed accounting standards. Enron’s system of corporate governance failed due to lack of advice and an alysis principles. Another failed case of corporate governance is that of Parmalat. The Parmalat is a group of companies in Italy that deals with dairy food business worldwide. In December 2003, the company’s management team announced the collapse of the company due to lack of funds and entered into the bankruptcy protection program.  Ã‚  

Basic Summary of Elliot Aronson's 'Social Animal' Essay

Basic Summary of Elliot Aronson's 'Social Animal' - Essay Example Aronson has fundamentally asserted that people tend to move along with the mob in general because if they do not, they are offered social resistance. They may change their personal opinion in favor of the majority either to escape a punishment, seek a reward or else, because of lack of confidence in their personal judgment. Conformity is essentially compliance if the objective is reward/punishment centered. It is identification if the individual’s intention is to develop affiliation, and it is internalization, if the individual conforms if he/she actually thinks it is rational. Aronson has also discussed some personality variables like self esteem, courage and experience that determine the level of conformity in an individual’s attitude. Then Aronson discussed obedience in context of conformity, and finally, the role of an uninvolved bystander as that of a conformist, because he/she overlooks the tragedy because everybody else does the same. Overall, the article is a ve ry comprehensive and though provoking demonstration of