The Importance Of Corporate Governance For Enhancing An Organization’s Wealth, Image, And Performance In International Markets

Business Research Topic/Title

Describe about the Research Proposal for Stakeholders Organisation.

Business Research Topic/Title

In the context of this research proposal, the main business research proposal topic is “A study to explore the importance of corporate governance in enhancing an organization’s wealth, image and performance in international market”. 

Importance and Significance of Research Topic

The research describes that, in the current time of globalization, and competition, the corporate governance is essentially involves balancing the interest of all stakeholders in an organization. On the other hand, it is also important to know that, in recent time, corporate governance is a necessity, essential, valuable and profitable aspect for any kinds of organizations in order to attain their strategic vision, core mission, long term business objectives, gain competitive advantages in an effective and more proper manner. Along with this, it is found that, the introduction of the Sarbanes-Oxley Act in 2002 became corporate governance a pressing issue in companies and international markets afterward high-profile companies such as Enron and WorldCom bankrupted due to involved in accounting fraud. Most of the business markets of the countries are striving to have a high level of corporate governance by environmental awareness in between the people and corporations, ethical or legal regulation, and sound corporate governance practices (Christensen, Kent and Stewart, 2010).

Moreover, most of the countries had focused on the implementation of corporate governance frameworks to maintain public and political interest in the regulation of corporate governance effectively. In the same way, with the help of corporate governance, business firms are creating their unique image in the front of public and internal and external stakeholders. On the other hand, this research proposal uses the secondary data in order to discover the significance and importance of today’s corporate governance for the organizations to maintain their wealth, image and performance in the market. In addition to this, the secondary data is collected by different sources for the literatures such as articles, scholars, books, online sources, and annual reports of the organization, etc., to identify the necessitate of the corporate governance to the international organizations. Hence, secondary source of information are used in order to fulfill the aims, objectives and goals associated with this research paper.

Literature Review

Corporate governance is defined as the system by which the business organizations are operated, monitored and directed by an organization’s management, its board of member, its managers, its shareholders and its other stakeholders in an effective and dynamic manner. On the other hand, According to Said, Hj Zainuddin and Haron (2009), the corporate governance framework ensures effective engagement with its stakeholders in the management and helps business firms to evolve with changing times. Moreover, it is accessed that, in recent time of globalization and competition, most of international or global organizations are putting the importance of corporate governance in their minds by balancing the interests of the all stakeholders in an organization, these includes its shareholders, financiers or investors, management, managers, employees, suppliers, distributors, vendor partners, customers, government and the community (Said, Hj Zainuddin and Haron, 2009).

Importance and Significance of Research Topic

In the words of Christopher (2010), corporate governance is an ethically driven business process that indicates that organizations are fully committed and dedicated to behave legally and ethically to enhance its wealth generating capacity and achieved aimed. In addition to this, it is also analyzed and found that, the corporate government ensures that the organizations are taking legal and ethical business decision in order to fulfill the stakeholders’ expectations, needs and requirements (Gerrish, and Lacey, 2010). Moreover, in the current time, the organizations are applying and using the corporate governance principles or regulations that indicate that they are dealing fairly and in a transparent manner in order to satisfy the internal and external stakeholders’ expectations (Christopher, 2010). In the same way, it is an effective way to gain and retain the trust of their stakeholders that contributed to enhance and maintain the organization’s wealth, image and performance in the international markets. On the other hand, it can be said that, corporate governance directly or indirectly provides guidance and suggestions to the business firms about how they should conduct their business operations ethically, legally and professionally. In the same way, it assists the companies in offering the competitive scope, improving the market share and increasing the organizational values. Hence, corporate governance provides a lot of financial as well as non financial benefits to the companies or business firms in an effective and proper manner (Peloza, and Shang, 2011).     

Moreover, Ward, Brown and Rodriguez (2009) similarly stated that corporate governance is totally based on the sustainable aspects of the organizations that ensuring fairness to all stakeholders. In addition to this, in the current time, business organizations are using and applied corporate governance practices, standards, strategies, rules, regulations and principles that indicates that they are fully committed and dedicated to ensure fairness and transparence across all their business functions. Apart from this, it is also interpreted that, corporate governance is also play a key role and functions in reflecting the organizational supporting culture, policies and good relationships with their stakeholders in an innovative and dynamic manner (Ward, Brown and Rodriguez, 2009). On the other hand, Integrity, fairness and transparence are key characteristics of an organizational corporate governance practices that ensure they retain and gain the trust of their stakeholders and improve performance at all times. Overall, it can be said that, through the corporate governance, business organizations are able to develop trust and conduct business activities more professionally and ethically that offers competitive scope to the firms over the competitors effectively (Torelli, Monga, and Kaikati, 2012).  

Literature Review

In addition, Mashayekhi and Bazaz (2008) stated that corporate governance framework ensures that the organizations are engaged with their key shareholders. Active, well-informed and independent stakeholders are necessary to ensure the highest standards of corporate governance in the organizations that maintain fairness and transparence in the business. The corporate governance framework is also assuming a fundamental role in reducing the organizational risks and failures that ensure the performance of the business. Moreover, the corporate governance indicates that the organizations are full dedicated to protect the long-term interests of their stakeholders that means they have focused on fulfilling their social responsibility in an effective and proper manner (Mashayekhi and Bazaz, 2008).  On the other hand, it is also accessed that, today, many organizations are also considering their stakeholders as greatest asset in their business operations to be their good name or reputation, therefore they have focused on corporate governance to improve their image and brand value in the market.

Moreover, Grove, Patelli, Victoravich and Xu (2011) depicted that, corporate governance is played very important role in the achievement of business objectives by developing or maintaining their good name or reputation in the market. In recent times, many developing nations faced the issued related to corporate governance in their business sector or industry such as lack of disciplining of management, accounting fraud or error, lack of securities rules related to stock markets or IPO, and lack of government control on corporations (Grove, Patelli, Victoravich and Xu, 2011). This impacted on the shareholders confidence or trust as well as affected the wealth, image and reputation of the organizations in between the stakeholders or people. In the same way, best practices and strategies can be used to overcome such issues in an effective and proper manner (Johnson and Christensen, 2010).

In addition, Hassan Che Haat, Abdul Rahman and Mahenthiran (2008) expressed that the corporate governance reflects that, the organizations are respecting the rights of shareholders by maintaining openly and effectively communicating, sharing business information and encouraging them to participate in general meetings and participant in business decision making. In the same way, corporate governance is playing a key role in the total success and growth of today’s business firms. Moreover, the organizations are recognizing the interests of all their stakeholders by developing a code of conduct for their directors, the board, and executives that encourages ethical and responsible decision making (Hassan Che Haat, Abdul Rahman and Mahenthiran, 2008). Hence, corporate governance indicates that the organizations disclose all accounting information with stakeholders to maintain level of accountability and transparency.

Research Questions

Research Questions

In order to find out the solution of this research problem, these questions would be useful for the researcher that is as follow:

What is the impact of sound corporate governance on organizational wealth, image and performance in the context of the international market?

How corporate governance practices affect the organization’s wealth, image and performance?is the role of the corporate governance in the context of performance and sales?

Are the organizations improving their wealth, image and performance in the international market through apply corporate governance framework in their business practices?

Research methodology and technique defines the selection of the research philosophy, approach, design, and strategy with proper justification that are followed by the researcher to achieve the outcomes/objectives of this research. Generally, the researcher is applied and used the qualitative and quantitative research designs to collect accurate or appropriate data regarding the research problem to accomplish outcome of the study (Goddard and Melville, 2004). The qualitative research design generally utilizes by the researcher to examine the reason behind the human particular behavior. In addition, the quantitative research design apply by the researcher to analyze the current human related issues, scientific study, and market problems through collect and analyze data in terms of huge quantity (Pickard, 2012). In this research study, the research would use qualitative research design to collect limited or appropriate data or information regarding corporate governance effectiveness for the organizations that help it to solve the research problems. Moreover, through qualitative research design, the researcher would able to collect the view of participants by conduct survey; therefore they analyze the corporate governance effectiveness in the current times (Kuada, 2012). Qualitative research design is quite significant to raise the accuracy of data and maintain the credibility and reliability of the research.

A Project Plan using a Gantt Chart

This section describes the milestones and Gantt chart that includes all tasks and activities of the research study that would be help the researcher to accomplish the research.

Gantt chart:

This research would be completed within 14 week; therefore the researcher will create a Gantt chart to complete the final business research (Capstone) thesis study within the time period (14 week). The below table indicated the Gantt chart that justifies the project all activities and tasks of the research study.

Activities	1	2	3	4	5	6	7	8	9	10	11	12	13	14
Weeks
Introduction
Literature Review
Research Methodology
Questionnaire Formation
Questionnaire Distribution
Collection of Responses
Analysis of Data
Findings Presentation
Relating Research Objectives with the Findings
Conclusion and Recommendations

Milestones:

The above Gantt chart indicates the milestones for this business research/thesis. The Gantt chart indicates that the following are the main milestones for this final business research (Capstone) thesis study: Week 1 (Introduction); Week 6 (Literature Review); Week 7 (Research Methodology & Questionnaire Formation); Week 10 (Data Collection and Analysis); Week 14 (Final Business Research Conclusion).

Research Process Description:

The overall research study process is shown in the below picture that reflect whole process is divided into five chapters. The milestone and Gantt chart also indicated the five chapters of this research process these are introduction; literature review; research methodologies and techniques; data collection and analysis; and conclusion and recommendation (Speziale, Streubert, and Carpenter, 2010).

The proper description of all chapters provided the direction of the researcher, so they maintain the reliability and validity of the research. Introduction chapter defined the research problem, research aim or objectives, research questions and background of the research problem that raised the knowledge of the researcher on topic, so that they able to develop the framework for next chapters (Celsi, Money, Samouel and Page, 2011). Moreover, the researcher would be conducted literature review through included the views of different authors on the research problems that helped it to collect the secondary data related to research study (Smith, 2015). Research methodologies and techniques chapter described the research philosophy, approach, design, strategy, and data collection techniques with proper justification that help the researcher to achieve outcome with maintain the reliability and accuracy of this thesis. In the next chapter, the researcher analysis analyses the data that is collected from primary and secondary sources and then interpret the data to present the key finding of this study (Goddard and Melville, 2004). In the final chapter, the researcher would represent the overall finding and final conclusion of this research and also recommends some suggestions that help researchers in the further research.

Data Collection & Data Analysis

In the context of this research, the researcher will be used the primary and secondary both data collection methods to gather information related to research problem. The primary data collected through questionnaire survey as well as secondary data collected through conducted literature review with included the view of different authors related to research topic/problem. Questionnaires send of the internal stakeholders of the organizations such as managers, employees and business vendors and asked them their opinions regarding the impacts of corporate governance on the organization’s wealth, image and performance in the international market (Vogl, Vogl-lukasser and Puri, 2004). In this research, primary sources collected data analysis and these finding represented through the use table, graph, and pie chart. The use of table, graph, and pie chart to present the questionnaire survey finding is an appropriate way due to it is easily understand for the readers. Data collection and data analysis explores the effectiveness of corporate governance in the context of enhance and maintain organization’s wealth, image and performance in international market (Kuada, 2012).

Description of Expected Research Outcomes:

The expected outcomes of this research indicates that corporate governance practices given the positive message in the stakeholders that organizations considered interests of all stakeholders, which created the wealth, image and reputation of the organizations in between the stakeholders (Grove, Patelli, Victoravich and Xu, 2011). The expected outcomes recommended that the organizations focused on corporate governance to maintain accuracy, fairness and transparency in their business activities or process that create and maintain wealth and image of the organization in the people, which contributed to improve performance of the business in the competitive international market (Noor, 2008).

Ethics Checklist

As a part of ethical consideration, the researcher makes sure that it citing and referencing of all valid and authentic secondary data sources to maintain credibility and reliability of this research. In addition, during collected primary data, the researcher must be keeping confidential of participant personal information to maintain ethical aspects of this research (Häyry, Takala, Herissone-Kelly & Capron, 2007). The researcher must be protected the privacy of participants, human subjects and rights in favor of the research to enhance the reliability, accuracy and quality of the research study.

References

Celsi, M.W., Money, A.H., Samouel, P. and Page, M.J. (2011). Essentials of Business Research Methods. USA: M.E. Sharpe.

Christensen, J., Kent, P. and Stewart, J. (2010). Corporate governance and company performance in Australia. Australian Accounting Review, 20(4), pp. 372-386.

Christopher, J. (2010). Corporate governance—A multi-theoretical approach to recognizing the wider influencing forces impacting on organizations. Critical Perspectives on Accounting, 21(8), pp. 683-695.

Goddard, W. and Melville, S. (2004). Research Methodology: An Introduction. USA: Juta and Company Ltd.

Gerrish, K. and Lacey, A. (2010). The Research Process in Nursing. USA: John Wiley and Sons. 

Grove, H., Patelli, L., Victoravich, L. M. and Xu, P. T. (2011). Corporate governance and performance in the wake of the financial crisis: Evidence from US commercial banks. Corporate Governance: An International Review, 19(5), pp. 418-436.

Hassan Che Haat, M., Abdul Rahman, R. and Mahenthiran, S. (2008). Corporate governance, transparency and performance of Malaysian companies. Managerial Auditing Journal, 23(8), pp. 744-778.

Häyry, M., Takala, T., Herissone-Kelly, P.H. and Capron, A.M. (2007). Ethics in Biomedical Research: International Perspectives. USA: Rodopi.

Johnson, B. and Christensen, L. (2010). Educational Research: Quantitative, Qualitative, and Mixed Approaches. (4^th ed.). USA: SAGE.

Kuada, J. (2012). Research Methodology: A Project Guide for University Students. USA: Samfundslitteratur.

Mashayekhi, B. and Bazaz, M. S. (2008). Corporate governance and firm performance in Iran. Journal of Contemporary Accounting & Economics, 4(2), pp. 156-172.

Noor, K. B. M. (2008). Case study: A strategic research methodology. American journal of applied sciences, vol. 5(11), pp. 1602-1604.

Pickard, A.  (2012). Research methods in information. USA: Facet publishing.

Peloza, J. and Shang, J. (2011). How can corporate social responsibility activities create value for stakeholders? A systematic review. Journal of the academy of Marketing Science, vol. 39(1), pp. 117-135.

Said, R., Hj Zainuddin, Y. and Haron, H. (2009). The relationship between corporate social responsibility disclosure and corporate governance characteristics in Malaysian public listed companies. Social Responsibility Journal, 5(2), pp. 212-226.

Speziale, H. J. S., Streubert, H. J. and Carpenter, D. R. (2010). Qualitative Research in Nursing: Advancing the Humanistic Imperative. USA: Lippincott Williams & Wilkins. 

Smith, J. A. (2015). Qualitative psychology: A practical guide to research methods. USA: Sage.

Torelli, C. J., Monga, A. B. and Kaikati, A. M. (2012). Doing poorly by doing good: Corporate social responsibility and brand concepts. Journal of Consumer Research, 38 (5), pp. 948-963.

Vogl, V.R., Vogl-lukasser, B. and Puri, R.K. (2004). Tools and Methods for Data Collection in Ethnobotanical Studies of Homegardens 16 (3), pp. 1-22. 

Ward, A. J., Brown, J. A. and Rodriguez, D. (2009). Governance bundles, firm performance, and the substitutability and complementarity of governance mechanisms. Corporate Governance: An International Review, 17(5), pp. 646-660.