Leadership and Governance in Corporate Organizations

LEADERSHIP AND GOVERNANCE 0
Leadership and
Governance
Student’s Details-
8/28/2019

LEADERSHIP AND GOVERNANCE 1
Executive Summary
Leadership plays a vital role in the organization and corporate governance as well as the people
who will develop the standards for others should have effective leadership skills. Therefore,
leadership and governance are mutually dependent. The main aim of the report is to highlight the
role of Corporate Governance in the organization and also a deep analysis of how the CEO are
majorly contributing into the Corporate Governance and how their activities are influencing the
overall structure of the organization. The analysis is undertaken from secondary research through
academic books, journal articles and the website sources. The report has included the
perspectives of leadership by explaining how CEOs can lead the organization in an effective
way.

LEADERSHIP AND GOVERNANCE 2
Contents
Introduction......................................................................................................................................3
Responsibilities of Board of Governors to monitor CEOs..............................................................3
Interconnection between Leadership Style and Governance Models..........................................3
Performance Monitoring and Evaluation of Corporate Direction...............................................4
Organizational Compliance and Risk Management.....................................................................4
Lead by Example.............................................................................................................................5
Importance of ethics, diversity and politics for effective leadership...........................................6
Perspectives of different stakeholders in Corporate Governance................................................6
Leveraging the Loyalty of the employees.......................................................................................7
Managing Networked Organizations...........................................................................................8
Recent Article..............................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

LEADERSHIP AND GOVERNANCE 3
Introduction
Corporate Governance lays down the ways, processes and techniques in which corporate is
managed. It ensures that the business is carried out by keeping in mind the needs of the
stakeholders. Corporate Governance is undertaken by Board of Directors fulfilling the needs of
an individual and society (Jan & Sangmi, 2016). Good corporate governance entails the
behavior and responsibility of top level managers which describes their attitude towards the
society. In Corporate Governance, a CEO plays a vital as CEO is accountable for the behavior
and actions of the company. CEO are hold responsible for the overall management of the
company and that can only be possible when they have effective leadership capabilities for
leading an organization. However, leading an organization is a challenging part for a CEO and it
is expected that he/she should have all the attributes of a leader. The purpose of the report is to
highlight the role of CEO in Corporate Governance. Also, the importance of effective leadership
in a CEO leading a company and being accountable for the maintaining the values and beliefs of
the company are also discussed.
Responsibilities of Board of Governors to monitor CEOs
Board of Governors is the highest decision making body into the organization and is often
regarded as Corporate Governance which relates to distributing the rights and responsibilities
into different participants into the organization. Board of Governor is treated as an advising
committee that is concerned advising CEO in the management decision making (Pathan,
2009). Further, Board of Governors monitors the activities and operations of CEO by approving
or disapproving the strategic decisions of CEO under the prescribed guidelines of Corporate
Governance (Wang, 2014). Apart from using their skills and expertise to advise CEO, it also
reviews the performance of CEO and can take a decision to replace CEO if the Board finds the
performance inappropriate in the interest of the organization. Therefore, Board of Directors not
only solves the queries of the CEOs but also takes regular feedback of the management and the
success of the projects lead by CEO in order to get to a fair estimate of the performance of CEO.