Corporate Governance Assessment and RatingNowadays it is not unusual for an investor to reflect on governance issues while deciding on investment determinations. As a result, many companies are involved in evaluating the corporate governance practices of public companies. Some companies offer credit ratings in addition to governance ratings. As early as the 1970s, organizations have been addressing business ethics with a number of different approaches that include establishing compliance platforms and supervisors, adding ethics committees, initiating codes of conduct, preparing and distribution of the corporate mission and values. Due to scandals in the recent past, there is greater emphasis for US companies and government agencies to offer more rigorously structured governance and ethics platforms so that companies are accountable to the communities in which they operate (Barrett, Todd, Schlaudecker & Perrin, 2004). Corporate governance rating firms have also started providing rating services. The customers of the service are diverse and the audience is constantly growing. Potential customers for rating services include small investors, fund managers, institutional investors, accounting firms, executive search firms, compensation and governance consultancies, and insurance companies. The result of questionable conduct by company staff and executives has led to vital questions about improving corporate ethics efforts and addressing the underlying reasons for these bad behaviors, as well as the growing demand for preventative corporate social responsibility and sustainable procedures (Barrett, Todd, Schlaudecker & Perrin, 2004). Understand the circumstances about...... middle of the paper ...... conclusion The importance of ratings on corporate governance and how they will influence investors is still uncertain. Of course, the usefulness of this type of rating is deteriorated by the apparent lack of uniformity among rating agencies. At grade the assessments are comparative; they are similarly becoming unimportant as practices have largely improved over time. Many institutional investors have individual platforms for calculating governance and do not depend on external services to measure these concerns. Some investors fundamentally do not believe such ratings are relevant to investment determinations about the value of a company or its managers. However, issuers and investors may find it increasingly difficult to avoid the consequences of governance ratings which may be viewed as a proxy for a company's compliance with shareholders.