How to decrease the possibility of having financial crisis Essay

How to decrease the possibility of having financial crisis - Essay ExampleThe financial crisis in a company is an un inventionned burden which may affect its resources, capabilities, the values and the dearwill of the company. Lack of in corporeald government and business ethics is one of the reasons responsible for the financial crisis in an organization. Acemoglu and Johnson (2003) have express that managers should multifariousness their way of thinking by disregarding that mismanagement of the macroeconomic policies is responsible for the lack of corporate governance. They should plan for strategies to overcome crisis in an plaque. The business leaders should focus on the policies like the legal framework of the organisation and protection of the interest of the stakeholders and investors. A good relationship between the shareholders and the managers help to master corporate governance within an organisation. Lack of business ethics in an organisation is responsible for wea k corporate governance. line of business ethics help an organization to frame a corporate governance strategy consisting of values, principles, a good work culture and proper decision make ability of the organizations. Wood (2002) and Lagan (2006) have said that organizations need to set the business ethics with strategic objective which can provide scope for act of corporate governance. ... The purpose of this look is to provide a methodological analysis by which an organization can achieve proper corporate governance required in order to reduce its financial crisis. The main objectives of this research are To achieve transparency and fair operations within an organization. To provide proper decision making ability in order to achieve the goals of an organization. To protect the interest of the customers, the shareholders and the investors. To understand the needs and demands of the stakeholders. To prevent the happening of unethical behaviour within an organization. To unders tand the liability of the directors to the managers and the liability of the managers to the shareholders, also known as accountability. methodological analysis According to Joseph and Tobin (2006) research philosophy is a procedure of collecting data, analysing it and then interpreting the result in order to work on a particular research. Research philosophy mainly consists of two approaches. single is the positivist style and the other one is the phenomenological style. Positivist research moulding focuses on analyzing the interdependency of the impertinent variables and internal variables. Positivist style is selected for this research, as this style deals with understanding of the internal affairs related to a business. Positivist style of research will also help to understand the reasons behind the lack of corporate governance in an organization. There are two types of research strategies, namely quantitative research methodology and qualitative research methodology. The res earch strategy chosen for this research is qualitative methodology. soft research model is used for descriptive research. Qualitative research can be analysed in terms of culture, ethics and behaviour. Qualitative