Corporate governance codes and the regulatory framework of Merck
Mechanisms for corporate governance vary across national and institutional environments However, two major categories have evolved Prevalent in economies such as, Spain, France, or Germany, is large shareholder controlling system On the other hand, market control mechanism is more prevalent in nations such as, UK and US The market controlled corporate governance system is dominated by liquid capital markets Market is favourable for takeover and market control and board of directors and external directors play a crucial role Ownership is mostly diffused
Effective and positively perceived corporate governance is beneficial for both shareholders and customers So, Merck has been deploying strict corporate governance policies for long-term success of its businesses The company established Merck’s ethics office in the year 1995 (Merck, 2014b) The objective was to support Merck’s dedication towards standard corporate responsibility, accountability and conduct According to this corporate governance codes, every employee is responsible for abiding by prescribed business practices and ethical principles The office is managed and developed by several professionals and is supported by numerous staff and professional experts in corporate ethics The overall budget allotted for this office in the year 2012 was 25 million dollars (Merck, 2014b)
Received on Sun Dec 06 2020 - 00:00:48 CET