Agency theory implies corporate governance and business ethics, as it helps to regulate and harmonize relations between all the components within and outside the firm. Would you assert that the regulations along with the new corporate governance guidelines can be seen as qualitative factors for change in industries growth in the 21st century?
Please respond with a reference. About 150 words.
Corporate governance regulations and guidelines: Qualitative factors for change in industries growth in the 21st century.
The affairs of corporate bodies have to be governed, directed, managed and ordered such that its performance will, cost-effectively, contribute to the attainment of its wider objectives.
The prevailing milieu within a corporate organisation needs to be one that is devoid of conflicts and constant communications break down between management (the agents) and its stakeholders, suppliers, customers, ...
The corporate body's interaction with its internal and external bodies is to a marked degree dependent on the nature of precepts aimed at ensuring its positive performance and productivity. Not only will it have a good impact on corporate image, there also will be a sense of growth within the industry as a whole.