Poor Corporate Governance can lead to Corruption.doc

Corporate Governance
Final Paper
Poor Corporate Governance
can lead to Corruption
Chantharas Kanchanakool (陳萸芳)
M987Z258
Corporate Governance has emerged as a major policy concern in every industry, governmental and private, especially in regarding financial business where investors put their money into anizations. Policy makers around the world have another important reason to be concerned with corporate governance: poor corporate governance also breeds corruption (Xun Wu 2005).
As Corporate Governance regards of policies, processes and it also distributes rights and responsibilities of participants and stakeholders, it effects the way and direction anization administered. In anization with poor corporate governance, it is easy for a stakeholder especially in a high position to offer or be offered bribery. anization can do bribery with public officials to avoid a definite cost or to gain some advantages, for example to gain public contracts in a bidding process. Internally, one stakeholder can do bribery or offer special preferences to his superior in order to get a position or privileges in anization. In this case, it could be vice versa when a superior could offer a privilege gain to his subordinate in order to get something in return. In other words, bribery can happen in multi-level of agents involved. Even a top management, for instance, is strictly abided with