Leadership and Governance: Responsibilities of Board of Governors, Traits of High Performing CEOs, and Impact on Employee Loyalty

LEADERSHIP AND GOVERNANCE

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Table of contents
Introduction......................................................................................................................................2
1. Responsibilities of the board of governors to prevent the unethical behaviour of CEO’s..........2
2. How do high performing CEOs lead by example?......................................................................3
3. Impact of CEOs on employee loyalty..........................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Introduction
There is interlinking between the businesses and Society which is responsible for influencing the
Global Agenda. In the current assignment, discussions are made to understand other societal
attitudes towards businesses that govern aspects of wealth and job creation. There has been a fall
in the consumer loyalty among the masses toward corporations as well as the executives working
in it due to leadership prices which are complemented by aggressive media which in turn
influences the consumer by the spread of information as well as viewpoints all over the internet.
The leadership is under scrutiny and is responsible for the sustainable strategy of the business
and its social impact.
1. Responsibilities of the board of governors to prevent the unethical behaviour of CEO’s
The CEO of a company is the top executive who is responsible for making the management
decision. However, they are also answerable to the board of governors who represent the
stockholders and the company owners (Sigurjonsson, Schwarzkopf & Bryant, 2018). The board
is responsible for setting the long-term goals and objectives for the organisation and oversees the
growth of the company. It should be kept in mind that the board of governors has the authority to
dismiss a CEO and approve a replacement. This means that the board of governors is responsible
for playing a key role in preventing the unethical behaviour of CEO and Management (Carroll &
Buchholtz, 2014).
The first impertinent thing for the Board of governors to do when facing anethical crisis is to ask
the right questions to the management and the CEO in power. This will enable them to
understand the impact of the actions of the management on the reputation of the company, the
long-term impact, cumulative effects of the actions on the shareholders and stakeholders of the
company. Asking the right questions will also help in understanding the perception of the
objective parties in case the scenario change. The board is also responsible for determining if the
actions undertaken by the management are technically correct or ethically permitted (Rashid &
bin MohdHarif, 2015).
It is necessary for the board of governors to understand the ethical, integral and cultural issues
pertaining in the company. In many cases, these controls fail as they are not sufficient enough or
are subject to management override. Which is why the controls need to be audited independently.
In order to assure and measure the reputation, Integrity as well as the risk culture by Board