Corporate Governance

Corporate Governance is a set of systems, processes and principles which ensure that a company is governed in the best interest of all stakeholders (Corporate Governance). It is the system by which companies are directed and controlled. Corporate Governance is about promoting corporate fairness, transparency and accountability. In other words, good corporate governance is simply good business. When a company is facing issues dealing with corporate compliance, implementing a system to deal with the compliance and corporate governance issues is the best opportunity for the company. In response to recent corporate governance scandals, governments have responded by adopting a number of regulatory changes. McBride Financial Services is in a position where Hugh McBride must develop and implement a corporate governance system that will benefit the organization as well as the stakeholders to become successful. This paper will discuss the concepts of transparency to corporate governance within the McBride organization and evaluate at least three instances in which the relationship between the self-interest of management relates to effective corporate governance.

McBride Financial Services, a start-up regional mortgage lender headquartered in Boise, Idaho, will be the preeminent provider of low cost mortgage services using state of the art technology in the five state area of Idaho, Montana, Wyoming, North Dakota, and South Dakota (University of Phoenix, 2009). Hugh McBride, CEO of McBride Financial Services, main focus is to make a profit and retain as much of this profit as he possible can and plans to do it by any means necessary. McBride Financial Services is a mortgage lender that offers a unique service to customers. As a result of this unique service, Hugh McBride has gained the support of a major investor. Hugh McBride and Beltway Investments has established a relationship that and he is confident that his business will be successful. Hugh McBride wants to do...