CorporateGovernanceintheSportswearIndustry.ppt

Corporate Governance in the Sportswear Industry Alex, YEUNG, wai hon Fu Jen Catholic University, Taipei, Taiwan Nov 1, 2005,. Tokyo, Japan Introduction In the past decade, corporate catastrophe with maltreatment of corporate governance being the primary cause have included a list of prominent companies like Enron, WorldCom, Inc. and Barings (Zandstra, 2002; Boyd, 2003; Drummond, 2002). The sportswear industry which is essentially a highly globalized industry is inevitably affected as the demand for sound corporate governance practices has gathered considerable momentum. Introduction This paper serves to explore the current development in the philosophies and practices of corporate governance in the global arena with an emphasis to explain the rationale behind such emergence as a kind of a shareholder activism, followed by an attempt to scrutinize different approaches adopted by the Worlds prominent sportswear companies in response to such challenge in the context of globalization. Corporate Governance (I) Vinten (1998) suggests that the corporate governance issue could be dated back to the nineteenth century when limited liability corporations started to emerge and good corporate governance play a crucial role in sustaining businesses. (Parker, Peters and Turetsky, 2002; Zandstra, 2002; Vinten, 1998, 2000, 2002) Corporate Governance (II) Pass (2004) defined corporate governance as the “duties and responsibilities of a companys board of directors in managing the company and their relationships with the shareholders of the company and the stakeholder groups He presumed that it is the structure for the policies and procedures which govern the Board of Directors in a business corporation, including non-executive directors and others who advise the Board. Corporate Governance (III) Corporate Governance (IV) Accordingly, “Corporate Governance is a set of relationships between a company’s management, its board, its shareholders and other stakeholders”. Corpo