5.

4: PROVIDE THE
DISCUSSION ON THE
DEVELOPMENTS IN
CORPORATE
GOVERNANCE
The Team
ZAINUL AKMAL BIN MD ISSA (01DAT20F10)

MUHD ZUHAIRI BIN AHMAD AZHARI

(01DAT20F1048)
NUR FARAH YASMIN BINTI SHARUDDIN
(01DAT20F1046)
NUR HIDZWATI 'IZZAH BINTI PA'AING
(01DAT20F1052)
AN NUR AZALILLAH BINTI ABDUL AZIZ
(01DAT20F11047)
Greetings!
May we all be blessed with fortune
and God’s grace in our continuous
business operations.
About Our Company
One of the most prolific apparel retail companies globally,
Borcelle Apparel’s products are highly renowned and favored
around the world thanks to their high quality and high level of
aesthetics put into their products.
Agency Theory
Agency theory is an economic theory that views the firm as a
set of contracts among self-interested individuals. An agency
relationship is created when a person (the principal)
authorizes another person (the agent) to act on his or her
behalf.
Stewardship theory
The stewardhip theory is a theory that managers, left on their
own, will act as responsible stewards of the assets they
control, and describes the existence of a strong relationship
between satisfaction and organizational success
Stakeholder theory
The stakeholder theory is a theory of organizational
management and business ethics that accounts for multiple
constituencies impacted by business entities like employees,
suppliers, local communities, creditors, and others.[1] It
addresses morals and values in managing an organization,
such as those related to corporate social responsibility,
market economy, and social contract theory.
 5.4.3 PROVIDE THE EXPLANATION ON THE

FRAMEWORK OF CORPORATE GOVERNANCE IN

MALAYSIA

INSTITUTIONAL
The creation of a world-class apparel retail capable

of producing the most affordable high-quality

apparel.
REGULATORY BODIES

VISION MISSION
The creation of a world- The deliverance and
class apparel retail distribution of world-
capable of producing class apparel products
the most affordable to all customers from all
high-quality apparel. backgrounds.
STATUTORY

VISION
The creation of a world-
class apparel retail
capable of producing
the most affordable
high-quality apparel.
5.4.4: THE FEATURES OF POOR
GOVERNANCE
LACK OF ACCOUNTABILITY AND VOICE

When governing bodies refuse to take responsibility for their actions

and to hear the opinions of those they are responsible for, bad
governance results. The governing body stops listening to and taking
into account the opinions of headed persons when they are dismissed.
Democratic governments place a strong focus on accountability to
make sure that the public is aware of what is happening and has a plan
of action in case something goes wrong. Lack of responsibility
generates mistrust between the two parties, which in turn causes
instability. Due to uncertainty and mistrust, the parties have a bad
relationship.
 5.4.4: THE FEATURES OF
POOR GOVERNANCE
POLITICAL UNDERDEVELOPMENT

The political underdevelopment that dominates the majority of the

"South" primarily results from how nations were created and
political power shaped within the framework of the world's economic
and political systems through interactions with the wealthier "core"
nations. State leaders' lack of dependence on their people is a
significant contributor to political underdevelopment. The formal
organizational characteristics of low-world states are quite similar.
The wide variations in state-society connection patterns are the
main causes of the difference in state functioning.
 5.4.4: THE FEATURES OF
POOR GOVERNANCE
CORRUPTION

Corruption and bad governance are often thought to go hand in

hand. Corruption can be seen in various settings, from
governmental to economic. Corrosion can occur in different
ways. The presence of crime within a governing body leads to
poor governance because officials prioritize their interests over
others.
In developing countries, crime impacts social services, such as
health care and education, and law enforcement authorities,
such as the police.
 5.4.5: The risks and reports on
poor corporate governance
DIFFICULTY RAISING CAPITAL

Lack of adherence to a company’s corporate governance

strategies can also scare away investors. For investors, one of
the most important aspects when making an investment
decision is the level of implementation of corporate
governance principles (public disclosure of information,
protection of shareholder rights, and equal treatment of
shareholders) and profitability, which ensures return on their
investment.
5.4.5: The risks and reports on
poor corporate governance
LOSS OF SHAREHOLDER CONFIDENCE AND
TRUST

When a company deviates from its corporate governance

strategy it sends a signal to its shareholders that it cannot be
trusted. This erodes any confidence that the shareholders had
in the business and leads them to feel cheated or misled. If
shareholders believe bad business decisions are in the
company's immediate future, they may jump ship to avoid any
potential loss.
 5.4.5: The risks and reports on
poor corporate governance
INCREASED GOVERNMENT OVERSIGHT

A company with a reputation for lack of adherence to

corporate governance strategies may incur increased
government oversight from departments looking to verify that
the company is operating within the bounds of the law. This
puts the business in the spotlight if anything was to ever go
wrong.
THANK
YOU!