Leadership and governance PDF
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Added on 2021-05-31
Leadership and governance PDF
Added on 2021-05-31
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Running head: LEADERSHIP AND GOVERNANCELeadership and GovernanceName of the StudentName of the UniversityAuthor Note
1LEADERSHIP AND GOVERNANCE1. The Organization for economic co-operation and development, that is, the OECD is aforum that addresses the economic, social and environmental challenges that plagueglobalization. The Global Corporate Governance is under the OECD that aims at implementingthe practices of proper corporate governance. The Corporate Governance Forum provides aframework for the implementation of a framework that promotes corporate governance in acorporate set up. The OECD works as a response to the issues that concern corporategovernance and the challenges that are faced by the corporations. The Chief Executive Officer isin charge of the proper functioning of the company and also implements long term businessstrategies that create a good value of the brand in the market. The CEO is the bridge thatconnects the management and the Board and he is also responsible for the communication of thematters of the company to the shareholders, employees etc. a good corporate governance is aboutpeople and being at the top of the company and holding all the positions of responsibility, theCEO is directly in charge of the corporation. By virtue of the position the CEO holds, he isaccountable to the Board. With the increasing corporate scandals, the behavior and action of theCEO set the standards of the behavior that the company holds with the society. Whenever ascandal occurs, no one is held more accountable than the CEO and the onus of the corporation ison him to take care. There have been instances in the past when the CEO had to explain thestance of the company and testify to the public clearing the name of the Company to the public.The responsibilities of the CEO include maintaining transparency and accountability of thecompany. If the corporate governance is seen as puzzle, it can be easily attributed that the CEOfits perfectly in the puzzle and forms the missing link. The behavior and responsibilities form thecorporate governance and in cases when the corporation defrauds, it is responsibility of the CEOto preserve the goodwill of the company. In most cases when the company is embroiled in a
2LEADERSHIP AND GOVERNANCEdispute, the CEO is made the villain and in such cases the CEO is blamed as having the intentionto run away from his responsibilities. Whenever a company performs well, the shareholders andthe board are appreciated and the efforts of the CEO go unnoticed. The Head of the CorporateAffairs of The Organization for economic co-operation and Development have due credit to therole of the CEO saying that no corporate can perform of the CEO does not help and without agood CEO, a board cannot be said to be performing well. The relation between the CEO and thecorporation is that of an agent and principal because the CEO works under the supervision of thecorporations and represents the company to the outer world. The White Paper on Governanceheld that the duties of CEO include integrity, suitability and experience and transparency. This iscalled the fit and proper test. The fit and proper test lays down a guideline for the ChiefExecutive officers to follows. An effective model of corporate governance will give due credit toethics and it requires a proper and good understanding of the structure of the corporation and therelationship of the management with the board (Kraakman & Hansmann, 2017). The board isresponsible for the election of a ethical and morally sound CEO who will ensure that thecorporations functions without any scams. It is the responsibility of the management to electCEO who will set the highest standards of morality and ethics. Good corporate governance is aminimum requirement and should be seen as a high priority for the management and the CEO.The overseeing duty of the management also includes checking the day to day activities of theCEO. In cases when the corporation suffers a setback due to the mistakes of the CEO, it will bethe responsibility of the management to punish and penalize the CEO for its shortcomings andmistakes. It is the duty of the management to makes sure that an ethical CEO is appointed andthat responsibility extends to taking due responsibility for the actions of the CEO and penalizehim for breach of his responsibilities to uphold corporate governance.
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