Multinational Corporate Entities Essay Example | Topics and Well Written Essays - 3000 words

Multinational Corporate Entities - Essay Example   A well governed MCE must balance the three groups in organisation which are shareholders, boards of directors and managers without compromising the monetary promises and other responsibilities to the stakeholders. Shareholders provide the capital so that they can achieve benefit from it and increase the organisation’s corporate worth. Shareholders possess rights and authorities to choose or to discharge directors and auditors, and employ, support or reject any kind of central changes for the sake of organisation’s wellbeing such as merger or alterations in investment structure . Managing External Corporate RelationshipsThe legal and regulatory obligations are portions of external incentive structure aimed at ensuring obligation of common business standards such as impartiality, transparency, liability, concern for protecting the shareholders, the customers, the employees, and avoiding offensive business practices which can impact on environment. National and interna tional organisations have developed several external aspects on best practices of organisation such as appropriate disclosure of financial statements, proper accounting and auditing principles, employment regulations, environment criterions and industrial product standards among others. Managing the external aspects is essential as without those an organisation can face acquisition from other firms . Shareholders, as company owners, have the right to enable corporate governance and govern the organisation directly.... Shareholders provide the capital so that they can achieve benefit from it and increase the organisation’s corporate worth. Shareholders possess rights and authorities to choose or to discharge directors and auditors, and employ, support or reject any kind of central changes for the sake of organisation’s wellbeing such as merger or alterations in investment structure4. Managing External Corporate Relationships The legal and regulatory obligations are portions of external incentive structure aimed at ensuring obligation of common business standards such as impartiality, transparency, liability, concern for protecting the shareholders, the customers, the employees, and avoiding offensive business practices which can impact on environment. National and international organisations have developed several external aspects on best practices of organisation such as appropriate disclosure of financial statements, proper accounting and auditing principles, employment regulations, environment criterions and industrial product standards among others. Managing the external aspects is essential as without those an organisation can face acquisition from other firms5. Rights of Shareholders Shareholders, as company owners, have the right to enable corporate governance and govern the organisation directly or by voted representatives. The shareholders are not likely to undertake duty for handling corporate actions as they are usually positioned for board and administration teams. Shareholders can instigate the business units to provide attention on specific major concerns such as vote of board members and any other ways for inducing the arrangement of the board, alterations to the organisation’s gradual brochures,