Question

the cadbury report on corporate governance radically changed the way organisations are governed. critically evaluate the effectiveness of the changes introduced

Answer 1

The Cadbury Report on Corporate Governance was set up by the Financial Reporting Council of London Stock Exchange. The report concentrates on the best practices that an organization has to adopt for its survival/best governance.

The report deals with the Static Level Decision-makers. Since a corporate's governance is vested in the hands of the Static Level Managers. It discusses the role they need to play at their best in the organization.

Effectiveness of the changes introduced:

1. Since the roles are assigned to each manager, the burden or fraud risk factor is controlled.

2. The independency of the directors lead to a fair governance.

3. Ensuring professional relationship with auditor, their pay to stand public protects the public trust on the company.