subject- Governance in a globalizing world Purpose:This assignment is to provide you with an opportunity to understand current and topical corporate governance issues, review and research corporate...

GOVERNANCE IN A GLOBALIZING WORLD
Corporate Governance and the Renault Debate
The corporate governance refers to the set of systems, principles and processes, by which a company is governed. They provide the guidelines for ways with which a company can be directed or controlled, so that it can meet its goals and objectives. The provided guidelines act in a manner that adds to the value of the company and is beneficial for all stakeholders in the long-term. Stakeholders in this case would include everyone ranging from the board of directors, management, shareholders to customers, employees and society. The management of the company hence assumes the role of a trustee for all the others. Corporate governance is important as it keeps the financial, economic and sustainable practices that should be followed by the company in check. In a large scandal by automobile giants Renault, we see the importance for corporate governance. Luca de Meo, who was previously the head at Volkswagen took over charge of Renault as they fired Theory Bellore their former chief. This was a major reshuffle in the power in the Nissan-Renault-Mitsubishi alliance group as they were hit with financial scandals due to the works of their ex chairperson and CEO Mr. Carlos Ghosn. Ghosn was a
ested in Japan sometime in late October, 2018 due to allegations of financial misconduct and tax evasion within the company terms. All three member of the alliance has shown a shift in power hiring new and fresh members from another automobile giant in an attempt to remove the existing support for Mr. Ghosn. Following this both Nissan and Mitsubishi has seen to remove their heads from the posts as well after the departure of Mr. Ghosn. This marks a fundamental instance in the conglomerate alliances, which states how important corporate governance rules are in today,’s date. Renault has describes this move as an initiative to welcome a clear and positive environment within the company. They have released an official statement which states that multi-dimensional and high quality efficient individuals that follow the company policies are what this alliance needs right now.
The need for media to report such incidences:
Corporate governance not only holds ground in economic crisis but it is relevant for common citizens as well. Many people see corporate governance as only relevant to industries. Yet most of the money that goes into these companies is directly crowd sourced. Therefore reporting such incidences in the media lets the common citizens understand the relevant information of how corporate giants are scheming against them. Fundamentally, there is a level of confidence that is associated with a company that is known to have good corporate governance. The presence of an active group of independent directors on the board contributes a great deal towards ensuring confidence in the market. Corporate governance is known to be one of the criteria that foreign institutional investors are increasingly depending on when deciding on which companies to invest in. It is also known to have a positive influence on the share price of the company. Having a clean image...