Hi, need to submit a 500 words essay on the topic Corporate Governance Practices in Qatar.
Different frameworks are being drawn up to ensure that there is integrity in the market that may allow the region maintain its ethical stand, and at the same time, make profit in the ever-changing world market. This paper will examine corporate governance, and how it differs among international and local companies in Qatar.
The aspect of corporate governance may not be a new one, but Qatar is among regions that do not have long-standing financial infrastructures and may not necessarily be fully aware of the impact it has on the region. However, the region is trying to incorporate the phenomenon of corporate governance through the financial market authority (Tricker, 2009). This is in a bid to address some of the issues that face most of the companies in the region, and the challenges that the region faces with a foreign company’s involvement in the region. The Qatar Financial Market Authority (QFMA) has certain guidelines for all companies that operate in the region, but the MNCs face much steeper challenges when it comes to their operations.
One of the main issues that arise with MNCs in the region is the issue of the greed culture associated with MNCs. This ‘infectious greed’, as countless people refer to it, is presenting tremendous challenges to their companies in Qatar. The boards of directors in major companies are being faced with the challenge of being forthcoming with every action they take that concerns the company. The control systems in these companies are required to uphold certain regulations in order to operate without problems. Strict external auditing is required for these companies to have a transparent accounting procedure that makes them accountable to the QFMA. Agreements on disclosure are necessary to ensure financial reports are reported truthfully and accurately (Zinkin, 2011).
Compliance is another issue facing countless MNCs.