How Well Do You Think The Governance System Of Jpmorgan Chase Is Working In Protecting Shareholder Interests?

JPMorgan Chase & Co. is one of the world’s oldest, biggest and well-known financial institutions. With over 200 years of history, it has a significant and lengthy story to tell. Since their founding in New York in 1799, they have grown and succeeded by listening to their customers and also meeting their needs (“The History of JPMorgan Chase & Co.,” 2008). As a global financial services company with operations in over 50 countries, JPMorgan Chase & Co. combines two of the world’s foremost financial brands: Chase and J.P.Morgan. The firm is a leader in financial services for consumers, investment banking, commercial banking and small business, processing financial transactions, private equity, and asset management. (“The History of JPMorgan Chase

Corporate governance is the set of processes, customs, policies, laws and institutions, which directed, administered and controlled over the corporation (Monks & Minow, 2008). Corporate governance is a way by which a company governs itself for providing the values to their stake holders. The WorldCom did not follow the corporate governance policy. If the WorldCom would have followed the corporate governance it would have not led towards this business failure and company would have not gone for the unethical practices conduct in the organization. Corporate governance would have increased the faith of stakeholders towards the company and company would have survived for long time (Monks & Minow, 2008).

In light of recent global business scandals, corporate governance has become a significant topic. It can be understood as a dichotomy between the shareholders and the management of a company. Navigating this relationship is often problematic as the shareholders provide oversight while management makes daily executive decisions on their behalf. When managed appropriately, this balance between shareholders and management can result in improved efficiency, conflict resolution and a contribution to improving the standards and efficiency of the entire operation. This paper will examine the nature of both roles, how they often are in conflict and discuss the corporate ethics of this relationship. For a student of business organization, understanding how varying elements of a company resolve their issues is critical and can serve as a lesson that can be applied in other endeavors.

In general, the corporations work towards meeting the end goal of adding value to its shareholders and/or stakeholders, but the way this ‘value is added and who is given priority while adding this value’ depends on the ‘perspectives’ (session1 slides) corporations choose to fulfill the objective of the given corporation. Corporation structures involve executive management, board of directors and its internal and external stakeholders. The executive management are at the helm of running the company, executing strategy and managing company operations, while corporate boards are supposed to keep an ‘careful watch’ and guide executive management activity. Boards are primarily performing ‘advisory and monitoring’ functions i) by acting independently in the interest of the corporation ii) guide management by taking ‘un-biased’ stand and at times taking opposing viewpoint than the company’s management iii) select, evaluate, and compensate Chief Executive Officer(CEO) and executive management oversee succession planning(session1)iv) review and monitor company performance while minimizing company costs v) risk identification, risk mitigation and risk avoidance guidance, governance and vi) guidance to CEO and senior management around strategic and operational direction of the organization.

Corporate governance mainly involves balancing the interests of the company 's many stakeholders, including its shareholders, management, customers, suppliers, financial institutions, governments and the community. Since corporate governance is also provided a method for obtaining the

A)Corporate Governance is a structure of the company by balancing all the individual, corporation and society interest. It also helps to create relationship between company board, shareholder and stakeholder and have proper functioning of organization to prevent fraud. Board of director in the company is being appointed by the shareholder and was been audit by them if the director managing and operating the business well by reporting or having general meeting. The responsible of the board of director are achieving the company objective, provide leadership and supervising the management and reporting the shareholder about the achievement and problem. All action of the board are subject to laws, regulations and shareholder. There are various theories that underline the development of corporate governance which include Agency theory, Stakeholder theory, Stewardship theory, etc.

The relationship among stakeholders used to determine the strategic direction and performance of an organization is termed “corporate governance”.

By expanding the spectrum of interested parties, the stakeholder theory stipulates that, a corporate entity invariably seeks to provide a balance between the interests of its diverse stakeholders in order to ensure that each interest constituency receives some degree of satisfaction (Abrams, 1951). The stakeholder theory is therefore appears better in explaining the role of corporate governance than the agency theory by highlighting the various constituents of a firm. Thus, creditors, customers, employees, banks, governments, and society are regarded as relevant stakeholders. Related to the above discussion, John and Senbet (1998) provide a comprehensive review of the stakeholders’ theory of corporate governance which points out the presence of many parties with competing interests in the operations of the firm. They also emphasize the role of non-market mechanisms such as the size of the board, committee structure as important to firm

Corporate governance is the rules and systems, based on which a company is run. These systems are put in place to ensure that a company always runs in the best interest of its stakeholders such as shareholders, management and customers. These rules prevent managers in an organization from participating in a self-interested manner that could be damaging to the company and its stakeholders.

Corporate Governance is the relationship between the shareholders, directors, and management of a company, as defined by the corporate character, bylaws, formal policies and rule laws. The corporate governance system was designed to help oversee the decisions and best interest of the shareholders. The system should works accordingly: The shareholders elect directors, who in turn hire management to make the daily executive decisions on the owner’s behalf. The company’s board of director’s position is to oversee management and ensure that the shareholders interest is being served. Corporate governance focus is with promoting enterprise, to improve efficiency, and to address disputes of interest which can force upon

Corporate Governance is the set of relationships between a company’s shareholders, board, the executive management and other stakeholders. The conflict of interest between these parties has resulted in what is called the agency problem, which arises from the separation of ownership and control at a corporation. Good corporate governance practices attempt to resolve the agency problems by aligning the interests of managers and shareholders. The same corporate governance is not followed by all countries; it differs according to the culture, practices, legal, and history, economic and social environment. Each company follows its own procedure for governing on the lines of the model given by the country. Corporations today have laid down the policies of CG in their own manner as a result of which an important question is whether standard CG can be established and achieved at a global level. In each country, the corporate governance structure has certain characteristics or constituent elements, which distinguish it from structures in other countries. CG component factors can be classified into three groups those related to top management organization, the board as whole or shareholders, and stakeholders.

Corporate governance refers to the set of rules, procedures and processes which merge to form a structure or a system to control and direct companies/organizations. It is the manner or a specific set of ways in which the objectives of an organization are achieved. It is the body of structure which specifies rules and regulations so that the interests of stakeholders are not affected in achieving the goals of an organization. Corporate governance is a set of rules or a code of conduct by which organizations abide.

Corporate governance is a broad operation concerned with choosing the board of directors and with setting the long run objectives of the firm. This means managing the relationship between various stakeholders in the context of determining and controlling the strategic direction and performance of the organization. Corporate governance is the process of ensuring that managers make decision in line with the stated objectives of the firm.

A dynamic and fundamental view of business nowadays is presented in corporate governance. As a term, governance comes from a Latin word gubernar means to guide; describing the main purpose of modern governance which is guiding relations between different counterparties. That emphasizes directing function rather than monitoring function. The definitions of corporate governance always concentrate on shareholders’ relations with their companies. The new definitions of governance mention on accountability to various stakeholders as a significant role of governance. Successful business is badly needed for corporate governance as well it is significantly for social and environmental benefits, which cannot be ignored. Global financial crisis and companies collapsing caused of a weak governance system have spotlighted the need of improving corporate governance. The crises has pushed countries to issues regulations in order to protect financial markets such as Sarbanes-Oxley 2002 in United States of America and Higgs report 2003 in United Kingdom presenting quick respond on financial crisis and failures of corporate governance. The lesson of current crisis requests from researches to look on the structure of incentives and on a poor controlling system. That led to review corporate governance concepts and to modify and issue new recommendations to improve governance practices such

Corporate governance is a key term to understand and it is increasingly important part of running a successful company. The system has evolved over the years, guided by the challenges and misjudgements of the corporate world.