Corporate Responsibility & Governance Assignment - 1

Corporate Responsibility & Governance - Assignment Example Wealth creation is not the sole objective that firms should pursue rather they are obliged to other goals that are aimed at ensuring the enterprise gives back to the society that has been supporting it through its journey to success (Aras, & Crowther, 2012). Corporate governance, on the other hand, is the mechanisms that stakeholders of a business utilise to conduct internal control of the affairs of the organisation so as to ensure their interests are well safeguarded. Corporate governance is frequently premised by two circumstances the first one if through the agency problem or rather a conflict of interests between various parties that necessitated for an oversight role to be implemented by the stakeholders. Additionally, if the transaction costs are too high or rather are in such a manner that the agency problem cannot be adequately solved then corporate governance will be necessary to safeguard the interests of the company’s stakeholders (Simpson and Taylor, 2013). Coca Cola is a global organisation that conducts its operations in numerous countries across the world. For the purpose of this report, we are going to focus on the Coca Cola International in India on how it conducts its corporate governance. Since it is an international organisation Coca-Cola implements a rather similar corporate governance mechanism for all its affiliate companies in all countries with slight modifications to fit the regulatory requirements for the individual nations where the company is conducting its operations. The company has governance codes that guide them in the presentation of their corporate report. The code addresses a number of issues that are going to be elaborated as follows. To begin with corporate governance is all about internal control; that duty is bestowed on the directors of the company. The corporate governance code of Coca-Cola addresses the roles and duties of