Managing corporate governance
Corporate governance mainly refers to the set of internal rules and regulations as well as other policies in the workplace to direct the company successfully. Through corporate governance, the firms try to manage their strategies to improve organisational values which are directed by the board of directors in the organisations. The strategic management practice of the companies plays a crucial role in developing appropriate planning for managing corporate governance without which, it is difficult for the owners and managers of the Company to run their business strategically. Through this research paper, it is possible to understand the relationship between strategic management and corporate governance in the organisation which are necessary for running the operational activities of the firms ethically.
In such a globalisation era, the firms face the problems in managing business ethics and in this context, there is high concern of the multinational corporate firms to manage corporate governance so that they can run their business activities strategically in long run and secure future sustainable development.
Managing corporate governance is one of the main strategic planning in the multinational corporate firms who are trying to run their business activities strategically. Without managing corporate governance, it is not possible for the firms to run their operational activities ethically and secure future sustainable development. Hereby, developing effective strategy for managing corporate governance of the firms is necessary for all the organisations and there is high influence of the strategic management team who develops proper strategy in implementing suitable organisational practice that will maximise the organisational values and objectives. The system of corporate governance includes statured authority, balanced responsibility and developed accountability of the stakeholders which are necessary for all the corporate firms in developing the business strategically. Moreover, there is several importance of managing corporate government.
Without managing the organisational practice, the brands cannot manage their corporate governance and in this context, it is necessary to have strong management practices which can improve the planning of corporate governance. Through managing corporate governance, the companies can maximise stakeholder’s value and the stakeholders includes employees, customers, managers, distributors, government and social communities. Hereby, day by day the companies try to manage corporate governance in order to manage their operational activities and secure future sustainable development. Hereby, it is essential to manage corporate governance so that the brands can maximise the organisational values as well as the values for their stakeholders. In this regard, the organisations also try to manage corporate social responsibility as well as maintain accountability to increase transparency and create values for all the stakeholders who are involved with the business.
In this regard, managing corporate governance is a tactics of the brands in gaining high competitive advantage and improves their market share so that they can strengthen their customer’s base and expand their business ethically. As the corporate governance provides a clear framework to the companies to achieve its objectives, it further helps to develop proper management practice, action plan and internal control which will be important in improving the overall performance of the companies. Hereby, it involves balancing the interest of stakeholders including shareholders, managers, suppliers, financers, customers, employees, social communities and government. It is therefore a complex task for all the corporate firms to manage the strategic planning and improves corporate governance so that all the stakeholders will be satisfied. Corporate governance also has a broad scope which includes social and institutional aspects and it further encourages moral, trustworthy and ethical environment.
Without managing the corporate governance, the firms cannot run their business ethically. Hereby, it is necessary to study the planning though which the companies can manage their corporate governance and meet their objective successfully. The main issues arose is that due to proper ownership structure and governance regimes, the corporate governance and management of the organisations are affected negatively. On the other hand, there are many firms who are suffering from managing labour which further leads to poor corporate governance of the firms. Apart from that, there are managerial issues in the management team of the organisations, which further leads to poor corporate governance in the workplace and it is a serious issue in the recent times where the organisations face difficulties ion running their business ethically. Hereby, it is helpful to analyse the connection between the strategic management and corporate governance where the companies can resolve the existing issues and improve their corporate governance structure in the workplace.
Good corporate governance ensures the corporate success and economic growth in long run. Strong corporate governance is therefore helpful for maintaining investor’s relation and as a result the organisations can improve capital efficiently which further strengthen the financial position of the brands. It further lowers capital cost and it has positive impacts on the share price. Through managing corporate governance, the firms can maximise the interest of all the stakeholders including employees, shareholders, customers, social communities, suppliers, distributors and government. The main pillars of corporate governance are accountability, fairness, transparency and independence. The company’s owner try to maximise the value of the customers by providing quality products and services at affordable price which further satisfies the customers and retain them for long run. On the other hand, the company also aims at maximising the welfare of the employees by making the workplace safe. The owners and managers also focus at giving freedom to the employees, providing incentive and performance related pay as well as meet the requirements of the staff members in order to motivate them.
Additionally, maximising the welfare of the social communities is also necessary in order to improve corporate governance of the firms and in this regard the companies try to manage environmental and social responsibilities. In this regard, the companies focus at reducing environmental impacts of the organisational operations by reducing greenhouse gas emission, improving the use of renewable resources and recycling the waste. Apart from that the companies try to invest in charity and other social work for improving the condition of the social communities. On the other hand, the owners and managers are responsible for providing high return on investment to the shareholders in order to build strong relationship with them and retain for long run. Additionally, transparency in the operational activities further helps the companies to build trust among the stakeholders which further ensure high brand reputation and positive brand image in the society. These factors are contributing in achieving growth and organisational objectives successfully. Managing accountability and treating all the stakeholders fairly are also beneficial for the firms in strengthening their stakeholders’ base and running the business activities efficiently.
There is strong connection between strategic management and corporate governance as without the strategic decision of the CEO and directors, it is not possible for the companies to improve corporate governance. Internal rules and regulations as well as business policies are important as it determines the way of directing a company. The managers and board of directors or shareholders develop effective strategic planning for managing corporate governance through managing positive organisational culture. Hereby, the strategic decision is required to improve corporate governance of the companies and make positive brand image in the society. The strategic decision integrates the internal environment including corporate governance which are important for all the stakeholders to perform better and achieve the organisational goals efficiently. In order to meet the long run interest of all the stakeholders engaged with the business, the ethical ideas and acts of the CEO, board of the directors and other strategists are required which also helps to direct, regulate and control the business activities. The responsibility of the CEO of the companies is to establish and implement effective corporate governance process through business strategic planning and monitoring the implementation. Hereby, strategic management is necessary to maintain the standard of the business and improve the corporate governance of the firms so that it is possible to secure future sustainable development.