s heavily dependent on case law, and also to the difficulty of securing conviction not to mention the delay in getting results .Accounting standards are issued by the Accounting Standards Board, following a process of discussion through the Accounting Standards Committee based on Exposure Drafts issued by the Institute of Chartered Accountants. This process though is very thorough but, like the mills of God, it grinds slowly, so that creative accounting is invariably one step at least ahead of the regulatory process.Lack of commitment.Stakeholders in a company have always has their individual agendas and have tended to use that company to serve their ends. Employees were loyal to the company while it offered lifetime employment and promotion prospects, but tended to live their real lives outside their working environment. Customers had a growing range of choice and would only remain with the company if it offered exceptional value and service. Directors saw their role as empire builders in preparation for their next career move. Shareholders, by now predominantly institutions, saw their investment as a punt to be retained while building short-term value and sold at the first sign of difficulty.Considering the problems and issues of corporate governance over time two major approaches to improving corporate governance have emerged, which we may characterize as (a) traditional corporate governance and (b) inclusive corporate governance. The Traditional Approach follows the established philosophy underlying the Companies Acts and complementary legislation. It underlines the findings of the Cadbury, Greenbury and Hampel Report and focuses on the work of the Board and its relationship to shareholders. The basic concern is to improve current practice and avoid further scandals. Shareholders are to be encouraged to be more active. The focus is on process rather than philosophy.The wider approach to corporate governance has been pioneered by ...
