Critical Article About "The Sound Of Corporate Governance"

The Sound of Corporate Governance (Dumitrascu Mihaela, 2012)

Introduction

This paper explores the corporate governance and corporate social responsibility and takes a sample of top companies in the music industry. Also try to found if exist any connection between corporate governance and corporate social responsibility, and if both of these are equable for some social responsibility aspect.

Synopsis

Music is very important in our life because all of us can feel and understand it. The music companies are more and more worried to consumers and shareholders opinion and demands, because of that, companies must to respond to calls for greater transparency, corporate governance, social responsibility, the protection of human being, and have sustainable environment. Dumitrascu (2012, p. 921) say, “Corporate governance is a set of rules under which companies are directed and controlled, that branch of economics that studies how companies can become more efficient, promote fairness, transparency and responsibility in an organization”. Also, corporate governance including that they are working under or according to the law and to request shareholders and stakeholders.

The research methodology was a qualitative research based on observation of some aspects. The information was extracted of any reports of corporate governance codes and corporate social responsibility. They choose the 3 main companies from music industry: Sony, Universal (EMI) and WEA.

In general, the board is selected by shareholders to represent their interest and the overall success of the organization. The board will meet every month or 6 times in a year. For them is very important that all of Directors attend all of meetings. The Directors are selected for one year by shareholders or board. The management team consists of 10 (WEA), 7 (EMI) or 16 (SONY) members.

Director have to access to Officers, Employees and all the Information that is full and free. There is an annual Chief Executive Officer Performance Evaluation. The Board and the committees will regularly review management succession planning. The Board of Directors will conduct an annual self-evaluation to determine whether it and its committees are functioning effectively. The Committees of the Board are constituted by personal of finance, audit, payroll, risk, etc of three different companies.

Some aspects of Corporate Social Responsibility that they made are community investment and charitable, reducing paper use and promote recycling, development of a new company-wide program to reduce or offset, greenhouse gas emissions associated with: convert CD/DVD products to environmentally-friendly packaging and reduce waste.

Conclusion

The music nowadays represent trendsetter in products and service.

...