Sultan Center usually benchmark with other organizations globally and across industries, ensure consultation with the corporate governance professionals and also engage with the investors for the purpose of ensuring world class processes at the company. In Sultan Center governance structure, the CEO is in charge of the general management, supervising and controlling the company’s operations and other affairs. Below is an interview with the manager of Sultan Center, concerning corporate governance (Caprio & Ross 25).
Interview with Sultan Center manager
Interviewer: Please briefly describe what corporate governance means to Sultan Center.
Manager: Sultan Center understands Corporate governance as a means by which the interested persons in a corporation interact with each other for the purpose of promoting their benefit. It is considered as a dynamic occurrence, in two significant ways. The dealings among the parties are considered dynamic and also the rights and roles of the involved have a time factor. For instance, associates of the board are accountable for reviewing the documents concerning the organization’s initial financial period; analyzing the organization’s current financial status; discussing with the management concerning the organization’s strategy for the future (Caprio & Ross 19).
Interviewer: What is the benefit of good corporate governance to Sultan Center and what does the company do to enhance the quality of corporate governance internationally?
Manager: In our aspiration to enhance the quality of corporate governance globally, we have made the roundtables a comprehensive platform for policy dialogue, whereby the senior policy makers, supervisory bodies, businesses, shareholders, labor institutes among others can raise concerns, share experiences as well as find solutions. We also aim at encouraging contacts and establish links between the rising numbers of voluntary initiatives that are currently emerging. We are also providing expertise also from the other regions. In brief, Sultan Center utilizes the roundtables for the purpose of improving the understanding existing corporate governance functions in particular regions and informing the international community about the reform initiative. The roundtables are also used for the purpose of identifying the major areas for enhancement in the regulatory domain as well as the general functionalities of the company.
Effective corporate governance involves policies, practices and processes that make stronger the corporation. The profits to Sultan Center as a result of effective corporate governance include both the internal and the advantages (Vinten 425). The internal benefits are such as comprehensible supremacy policies, advanced supervision, good organizational administration, improved risk responsiveness and stronger corporate repute among others. The external benefits include, improved marketing of the company’s products and services liquidity o the company’s international bonds and shares, preservation of the company’s repute and improvement of capital accessibility (Webb, Matthias & Roddy 67).
Interviewer: Describe the actual corporate governance at Sultan Center?
Manager: At Sultan Center, the Directors have full and free access of the bureaucrats as well as other associates of Sultan Center and Sultan Center’s outside advisors. Any conference that a director wishes to organize is usually arranged through the CEO. The directors normally employ their judgment to make sure that such kind of contact is not disruptive to the operations of the company (Webb, Matthias & Roddy 67). The CEO must always be aware of the communications between the director and other associates of Sultan Center.
Interviewer: But is it not the function of corporate governance to maximize the investor worth?
Manager: Comparing corporate governances with increasing the shareholder worth is a mistaken attitude and actually in practice it has resulted to spectacular failures like the ongoing global economic crisis.
Interviewer: If the function of corporate governance does not just include increasing the shareholder worth, what then is the major function of corporate governance in Sultan Center?
Manager: Sultan Center ensures effectual corporate governance in order to assist the company operate more effectively internationally over the longest period possible, for the purpose of benefiting all the shareholders, through the identification, analysis and management of risks, reduction of the negative impacts, improvement of the performance (Vinten 423).
Interviewer: Please describe how this is done in Sultan Center
Manager: Sultan Center ensures good governance through assigning role among the interested groups. This has been an ongoing process in this company whereby the corporation regularly determines, examinations and administers risks and also regularly advances and strengthens the management of the company (Webb, Matthias & Roddy 67). Through analyzing, good management and systematic planning of additional fiscal indicators allows the management as well as the board to precisely understand well Sultan Center’s initial performance and continually monitor its present performance as well as improving the future performance of the company (Vinten 425). Effective governance of the fiscal indictors involves the practical supervision of all the internalities and the externalities, aiming at enhancing the organization’s internal performance and the external impacts on the business plus ensuring good relations with the stakeholders.
The Concept of corporate governance
From the interview above it is apparent that the approach to corporate governance would consider governance as something to do with making sure that there is a balance between the different interested parties in the affairs of Sultan Center. Alternatively, it could be viewed as a way to ensure that the leader is fully in charge of the production of transparency in accounting for over liberal recompense packages (Vinten 427). The real meaning of success as considered by Sultan Center includes having a comprehensible and attainable goal, having a practicable plan of achieving the stated goal, establishment of an organization that is able to deliver and having in position a reporting structure that guides the company’s progress. Effective corporate governance concerns attaining the stakeholders’ goals and producing success in an ethical manner. As such, it follows that it should involve a comprehensive application of effective management. To illustrate the entirety and the necessity for a holistic approach, one should consider the pressures on a large company such as Sultan Center (Webb, Matthias & Roddy 69).
The Pressures on Sultan Center
It is significant that a wide outlook is taken with regard to corporate governance for the reason that it cannot simply be said that effective management practices would result in effective corporate governance. Conformity with set of rules and standards in the setup of ineffective management or even unavailability of commitment to administration is likely not to lead to effective corporate governance. The long term outcomes of such kind of outwardly applied regulatory system can be a progressive introduction of more and more regulations held in less concern, and as a result less effect (Webb, Matthias & Roddy 67). The outcome profits neither the company nor its customers, and can only serve to generate a developing industry of expert consultants in corporate governance. In addition, it cannot prevent the bigger corporate malfunctions. Whilst the several stipulations of the different codes of conduct are regarded as the best corporate governance practice, if inflicted externally, there are always those who bend the rules (Webb, Matthias & Roddy 70). As Sultan Center believes, the great benefit of the shareholder model as compared to the stakeholder model in administration terms includes the simple goal it presents which is to maximize the shareholder worth. Without a comprehensive goal, the administration always faces an impracticable task in trying to function properly.
According to the interview above Sultan Center have illustrated that reliability and performance are not jointly limited, and that clean business is possible in every state. Customers accept the offers of an organization only when they are convinced by the advantages of the given products and solutions. If a company has the best offer, it is always likely to win the deal. With regard to the international operations, it is significant to note that management is not just accountable for running the company, but also for effectively communicating with the external investors as well as other shareholders (Vinten 420). Thus the accounting code setters are supposed to provide enough room for proficient decision: definition of the principle and provision of a particular bandwidth for the administration to portray the economic reality. Maintenance of consistency in Sultan Center concepts and policies has been very essential. In a world that is presently constant in terms fiscal and economic challenges, the company has to be consistent in its accounting standards. The key aspects of the management of an organization like governance, accounting as well as audit should be very stable. It is the duty of the entire fiscal reporting supply chain not to be drawn into the instability of economic crisis and regulatory discussions and forget about the significance of consistency. It is not advisable to use accounting as a justification for failing to properly describe a business (Vinten 430).
Caprio, Gerard and Ross Levine. “Corporate governance in finance: Concepts and international observations.” Financial Sector Governance: The Roles of the Public and Private Sectors (2002): 17-50.
Vinten, Gerald. “Corporate governance: an international state of the art.” Managerial Auditing Journal 13.7 (1998): 419-431.
Webb, Robert, Matthias Beck, and Roddy McKinnon. “Problems and limitations of institutional investor participation in corporate governance.” Corporate Governance: An International Review 11.1 (2003): 65-73.