The company that I chose to look at for the corporate governance was Coca-Cola. When you look up corporate governance and Coca-Cola you will see that they have a dedicated page directly targeting this subject. When you look further into this website they break down what exactly corporate governance means to them and how important it is. The very first sentence is that The Coca-Cola Company is dedicated to good corporate governance, which promotes the long-term interests of shareowners, strengthens Board and management accountability and helps build public trust in the Company. (Coca-Cola, 2016) I think this is an excellent way to start of the description of the corporate governance because it immediately address the fact that they are not only going to hold members of the company accountable but they are also doing whatever they can to ensure that the public is going to trust them as a company.
To me the previous statements show that they are doing exactly what they should in order to balance the interests of both the shareholders and stakeholders. This corporate governance is elected by the shareowners and the purpose is to oversee their interest in the long term health and the overall success of the business and its financial strength. (Coca-Cola, 2016) While this board does serve as the ultimate decision making body for the company, it still allows the shareowners to make decision on certain previously reserved matters.
The following is a direct quote from the Coca-Cola governance website: The Board is committed to meeting the highest standards of corporate governance. Operating in widely differing countries, in three continents, in various economic and regulatory environments, we have long recognized that strong governance and effective leadership are of critical importance to the Group in order to achieve our strategic goals. Our commitment to best practices in corporate governance plays a key role in managing our risks and opportunities and maintaining the trust of our stakeholders. Recognizing the value of effective corporate governance, we have regularly monitored and adopted best practices since the Group was formed.
The principal corporate governance rules applying to the Company (a Swiss corporation listed on the London Stock Exchange (LSE) with a secondary listing on the Athens Exchange) and our compliance with such rules, are described in detail in the section in our 2015 Integrated Annual Report entitled ‘Application of Corporate Governance Codes and the UK City code on takeovers and mergers’. (Coca-Cola Hellenic, 2016)
To me personally I believe these statements once again show just how important and serious that this company takes the topic of corporate governance. It is a very interesting concept among the company and for a member to be elected to this board they are quite obviously trusted and respected. This is even truer for a company that is as public as Coca-Cola.
Corporate Governance. (2016). Retrieved from http://www.coca-colacompany.com/investors/corporate-governance
Corporate governance overview. (2016). Retrieved from http://coca-colahellenic.com/en/about-us/corporate-governance/corporate-governance-overview/