Corporate Governance and Leadership.
Added on - 23 Sep 2019
Running head-Corporate Governance and LeadershipCorporate Governance andLeadership
1CorporateGovernance and LeadershipCorporate Governance and LeadershipIntroductionEvery organization needs to function smoothly in the business environment to maximize itswealth. The primary objective of any organization is to maximize its wealth and profit. Toaccomplish this objective, the business needs be to govern and control. The top management isresponsible for ensuring smooth functioning of the organization. To ensure smooth functioningof the organization and prevent from any misconduct the concept of corporate governance cameinto existence. Corporate governance means a set of processes, practices, and rules that guideand control the organizations. Corporate governance mainly focuses on balancing andmaintaining of interest of stakeholders such as customers, shareholders, suppliers, management,community, and government. Corporate governance tries to build relationships with stakeholdersto determine the performance and direction of the organizations. Corporate governance is basedon four pillars i.e.i)Accountabilityii)Transparencyiii)Fairnessiv)IndependencePrinciples of corporate governanceSustainable development of stakeholdersEffective distribution and management of wealthDischarge of responsibility of society
2CorporateGovernance and LeadershipApply best management practicesEnsure ethical standardFulfillment of law of the in every aspectLeadership is the act of or the ability to lead a group of people or the organizations. Leaders leadthe group of people from the front. They organize the people and build trust among them. Theability to build or develop a clear vision that motivates and induces the members of a group toachieve the common goal is called leadership. A leader of a group or team influences themembers of the group or team by his activities, and the members of the team follow their leaderwith a passion. Leadership involves,Establishment of a clear vision and goalsShare that vision with the group members so that members of the group can follow thatwillingly.Provides the knowledge, information and the methods of realizing the visionCoordinates with the conflicting interests of different stakeholders and team members.1.Could governance of the media and the political sphere be an issue to approach?Answer- media is revolutionizing the way of communication and interaction of the people.Media, whether print or electronic has reached all over the world especially electronic media, haschanged the scenario of the communication. There is a golden opportunity to the businesses toharness the benefits of media to grow and develop and to increase its wealth by increasingrevenue by targeting the new channels. Organizations are running towards leveraging the
3CorporateGovernance and Leadershipbenefits of social media and integrating internal and external social media to establish propercommunication among all the stakeholders. Media is beneficial for the business, but there arealso some limitations of it. Media can make a business famous within a shorter period, and it alsocan defame the business within a day. Therefore, business needs to understand or decide for whatpurpose it should media. Hence proper governance of media is essential for the business.One of the external factors that influence the business most is a political factor. Political factorincludes the rules and laws formulated by the government to regulate the business. Theorganization needs to follow that rules and regulations formulated by the government to avoidany legal action by the government and to smoothly function in the business environment. If thebusiness will not follow the rules and regulation of the government the business might be closed,or it might face legal action taken by the government. Therefore, the organization needs togovern political sphere to avoid any risk or legal action by the government.So, governance of media and political sphere would pave the way for the growth anddevelopment of the organization.2.To what extent could/should sound governance (dealing with conflicts of interest, etc.)principles be adapted to other (political, etc.) spheres?Answer- every organization faces some conflict either between team members, betweenmanagement and shareholders, between employees and management or between two groups. Theconflict may arise in even between two organizations. Conflicts of any kind may lead to decreasein productivity, and the performance of overall organization may affect. Conflict raise tensionamong all the stakeholders and out of all some may go for a strike or any other kinds of activities