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Challenges in Leadership and Governance

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Added on  2020-05-11

Challenges in Leadership and Governance

   Added on 2020-05-11

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Running head: LEADERSHIP AND GOVERNANCE1LeadershipName:Institution:Date:
Challenges in Leadership and Governance_1
LEADERSHIP AND GOVERNANCE2Ways by which the Board of Governance will prevent unethical behavior in the CEO The challenges that a company faces in the present times for a lot of leadership of companies that has made a lot of management and boards decisions to stand out. Abraham Lincoln once said that nearly all men can in one way stand adversity; however, if you want to test a man’s character he should be tested with power. This is a clear picture on what the CEO s position can bring out of a man. The CEO position should be the very important where every decision of the company can be exemplified through this position.. a vital position where transparency,accountability and integrity should be of most importance in the context of governance of a company(Schein & Schein, n.d.).The image of the company’s chief executive can run into deep and heated waters when mediasecurity fast picks up a story on compensation or any other crisis in a company that has been mishandled by the CEO and blown out of proportion. This is done in difficult times of the company and the current environment. The CEOs effectiveness and leadership qualities are shown in time of crisis like in this case. The best case examples for this are the BP case studythat showed how media scrutiny and CEOs effectiveness can be affected and the second case is the Siemens Case of accountability and the limits that the Chief Executive has(Ybema, Yanow & Sabelis, 2011).However, the board of governance can do a lot to prevent bad and unethical practices and behaviors that can be brought by the CEO. Every company requires good governance and corporate management. Regardless of how big or small company is, corporate governance is important in ensuring ethical and professional practices.
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LEADERSHIP AND GOVERNANCE3Corporate governance measures and effective policy decisions should be every board of governance top agenda besides making strategic decisions. It is important for the board of governance to have the best corporate governance policies that are the reference point for dosand don’ts of the Chief Executive of the company.The other way in which the board of governance can prevent bad behavior is by ensuring thatthe CEO is well compensated. In many cases for example the Siemens case, accountability was the main issue. CEOs should be compensated well to ensure that they do not engage in fraudulent activities and bad behavior that may lead to a tarnish of the image of the company.The board determines the compensation in most cases of thee Chief executive, in many companies, they are paid the highest with some going to hundreds of millions annual compensation which includes salaries, bonuses and employees share benefit plans if any. Thismakes the CEO committed and loyal to the work that he has been given(Alvesson & Sveningsson, 2016). There is no right level of compensation of compensation according to Fabiani but there is the appropriate level of compensation.The third point in board of governance decision to ensure that there is high integrity that enables sustainable yet long term performance of a company. Ensuring integrity ensure that the CEO is accountable for every decision he makes and that the company will face media scrutiny if the decisions are not good. Media scrutiny dents the image of the company and will affect negatively the performance(Schabracq, 2007).The board of governance should also set the performance criteria of any organization spearheaded by the CEO. For the company to have good business acumen, the board of governance must have the best leadership qualities who know the visions and mission of the
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