A review of corporate governance practices in the service industry in modern-day business

Abstract

This literature review aims to analyze corporate governance practices in the service industry for contemporary businesses across the globe. In today's market-oriented economy, corporate governance is becoming increasingly important, especially in light of globalization's implications. Corporate governance is a critical component of transparency, as it ensures that the interests of all shareholders (major and minor) are safeguarded. Good corporate governance aids a company in controlling risk and lowering the chance of internal corruption. Corporate governance is the bedrock of any commercial organization; it consists of the processes, policies, and regulations that a company uses to make official decisions and administer the company. Strengthening accountability has become an increasingly significant aspect of development assistance in recent decades. The importance of accountability has been acknowledged as a way to increase the effectiveness of development cooperation. Accountability is also a management practice that ensures that superiors hold employees accountable for their actions and that supervisor follows proper procedures. Accountability is necessary for an organization's success, Accountability is important in business organizations because it enhances employee ethics; the board must take full responsibility for the powers and authority it has been given. Transparency refers to a company's willingness to provide transparent information to shareholders and other stakeholders. After the Enron scandal in 2001, transparency is no longer an option; it is now a legal requirement that a company must achieve. The researcher used synthesis of related literature for his review paper.