1. Development of corporate governance Chapter 2

3. Influences in corporate governance Governance theory 2 major factors affecting organisational operation Agency theory.- leads to s/h pressure- s/h activism Stakeholder theory.- Stakholder lobby & concern over social responsibility Other influences – Company law, auditors impact, codes of governance .

4. Different CG reports and focus areas

8. Improve s/h perception & market confidence

9. Poor governance = poor performance

10. Attract institutional investors

11. Good rating / reputation from regulators eg Moody’s

13. Directors freedom of decision making may be hindered

14. Adds bureaucracy in the use of committees & disclosure requirements

15. Cannot stop fraud

16. Adherence to governance req , may harm competitiveness