Importance of Corporate Governance in Eliminating Customer Issues

Report: Individual 6000 word written report with
action plan
(Summative)

Contents
INTRODUCTION...........................................................................................................................3
Background of Research..............................................................................................................3
Rationale of research...................................................................................................................3
Aim..............................................................................................................................................4
Objectives....................................................................................................................................4
Questions.....................................................................................................................................4
LITERATURE REVIEW................................................................................................................5
Benefits of corporate governance in context to organisation......................................................5
Significance of accountability in providing services to customers.............................................5
Importance of corporate governance in eliminating issues of customers....................................6
Ways for improving the accountability in corporate governance................................................7
METHODOLOGY..........................................................................................................................8
CRITICAL REVIEW OF RESULTS OF SECONDARY AND PRIMARY RESEARCH..........11
Primary research........................................................................................................................11
Secondary Research...................................................................................................................23
Recommendation...........................................................................................................................24
Conclusion.....................................................................................................................................25
REFERENCES..............................................................................................................................26

TITLE: Importance of corporate governance in eliminating issues of customers through
strengthening accountability.
INTRODUCTION
Background of Research
Corporate governance is explained as system of the policies, practices and rules that
dictate how board of directors of company manage as well as oversees company operations. It is
system through which firms are directed and controlled. Objective of the corporate governance is
to increase the value of shareholder and also protect other stakeholders interests through
improving accountability. Good corporate governance is important to enable firms operate
effectively, improve capital access, safeguard stakeholders and mitigate risks. This makes firms
transparent as well as accountable to the investors to reduce expropriation for shareholders.
Accountability is assurance that a person or company will be examined on behaviour or
performance concerned to something for which they are responsible (Barakat, Pérez and Ariza,
2015). In context to this, corporate accountability consisting answerable to all stakeholders of
company for all the actions as well as results. Unilever is British Dutch multinational consumer
goods and its headquarter is in London. The products of Unilever are candy, soft drinks, ice
cream, food, cleaning agents, bottled water, consumer healthcare products, personal care and
others. Unilever company is subject to the requirements of corporate governance in Netherlands.
This firm keeps corporate governance arrangements under the review and its compliance with
needs are detailed within corporate governance.
Rationale of research
The current investigation is concerned with the importance of corporate governance in
eliminating issues of customers through strengthening accountability. The better corporate
governance assist in eliminating the issues faced through consumers in regards to accountability.
The present investigation is mainly conducted in personal and professional context. In the
personal context, researcher can enhance its understanding regarding corporate governance and
the issues faced by the customers from accountability. Other than this, in professional context,
knowledge and the research skills of an investigator enhanced as it provides the chance to
perform similar kind of investigation in future (Bhaduri and Selarka, 2016).

Aim
To identify the importance of corporate governance in eliminating issues of customers
through strengthening accountability. A study on Unilever.
Objectives
 To examine benefits of corporate governance in context to organisation.
 To determine significance of accountability in providing services to customers.
 To identify importance of corporate governance in eliminating issues of customers.
 To analyse ways for improving the accountability in corporate governance.
Questions
 What is the benefits of the corporate governance in context to organisation?
 What is significance of accountability in providing services to customers?
 Why corporate governance is important in eliminating issues of customers?
 What are the effective ways for improving the accountability in corporate governance?

LITERATURE REVIEW
Literature review is comprehensive summary of the previous investigation on specific
area. There has been secondary sources considered while doing the literature review such as
books, scholars, journals, articles and others. There has been viewpoints and opinions of
different authors considered and critical evaluate.
Benefits of corporate governance in context to organisation
According to opinion of Lakshna Rathod (2020), with support of the better compliance
culture, board of the directors can be benefit in multitude of the ways from the better corporate
governance practices. There are some benefit of the corporate governance in context to company
mention below:
Encouraging the positive behaviour- In this, having the delineated processes and
policies and board of directors who maintain compliance culture that supports to improved
results directly. This is imperative that all the board members should participate in culture and
assure the communication line with the management.
Minimising cost of capital- In this present environment, implementation of the better
governance practices can lead to minimise cost of capital of firm. Firm with the equity or debt
investors may search that investors pay premium work with firm that has he sound governance
framework (Font, Guix and Bonilla-Priego, 2016).
Improving top level decision- There is demonstrable connection among organisational
governance and the decision making related with the improved performance. Number of the
failure in performance have been linked directly with the poor governance. In regards to this,
there is no doubt that the better governance mainly assures the quick access to the information
and better communication between stakeholders which leads to the positive outcomes. In regards
to this, better governance enable the accurate as well as rapid prioritising actions. It can prove the
invaluable in enable company to weather the complex economic storms and also supports
sustainability of company.
Significance of accountability in providing services to customers
As per opinion of Douglas Hanna (2020) Accountability in the customer service is ability
of company to account for the actions as well as decisions of business. The accountability
eliminates efforts and time that spend on distracting the unproductive behaviour and distracting

activities. It is necessary to make the people accountable for actions which teaching effectively
them to value work. There is a requirement to develop the trust level for customer service
representatives. The people have to make the independent decision and these are based on team
spirit that shares the information and give feedback for the continual improvement. On the other
hand, this is easier to emphasize accountability with team but not easier to tell how accountable.
This is harder to make them accountable mainly business leaders are forget they are role model
for the accountability and do not audit own actions that assure that they practice what they
mainly preach (Kiliç, Kuzey and Uyar, 2015).
Importance of corporate governance in eliminating issues of customers
Zhe Zhang (2011) stated that an effective corporate governance helps to cultivate a
company's activities, leading to positive performance and sustainable business. It is a system of
rules, regulations and practices that tells a company's management team to manages and oversee
the operations of a company. The relationship between customer satisfaction and organisational
performance is best viewed from the perspective of an organisation. Corporate governance plays
important role for manages customers activities. It analyse the external factors like customers
demand, and manages operational activities related to customers products. The product should be
in proper and ethical way that can satisfied its customer. It manages customer related activities
and oversee the customers issues. A satisfied customers permits the organisation to move on the
pathway of growth, improved profitability. The board of directors has to protect the rights of the
customers through corporate governance. The sum total of all the mechanisms put in place by a
company to protect stakeholders (customers) rights. It consists with policies, regulations that
defines the management must deal with its customers and the remedies available to them in case
of a violation. Firms make a lot of efforts to ensure that there is transparency in their operations
and customers can consult them in case of their rights have been violated in any way. The
governance plays a central role that ensuring the customers rights are not abused. Customers are
basically concerned with the quality of the product and price of it. Corporate governance looking
for, right to be protected from all kind of hazardous goods and services, the right to be fully
informed about the performance and quality of product, right to be free choice, for its customers
and solved all the issues related to them (Matei and Drumasu, 2015).

Ways for improving the accountability in corporate governance
Jennifer Bridges (2020), stated that accountability is necessary measure of success of
staff members. This does not act as stick more that leads the people and assist them learn from
mistakes as well as accept part in project. There are different ways to improving accountability in
the corporate governance mention below:
Define the roles and responsibilities- Under this, team members are accountable for
what what they do not know they are supposed to be accountable. Hence, communicate clearly
which does what and get the concurrence and also feedback from team. It is necessary to take the
questions and assures that each one is on similar page (Rivera, Bigne and Curras-Perez, 2016).
Clarify report structure- In this, accountability requires structure. There should be
system in place to define who reports and authorise so that there is a clear channel to the
disseminate as well as report on work of people and accountability. In regards to this, field
questions from team to assure process of reporting is understood through all.
Give the particular deadlines- If tasks are the open ended and there can not be
accountability for missing the deadlined which do not exist. It is necessary to be clear as to when
task is due and may be set notifications for reminding the team members when the deadlines are
to be looming. In regards to this, feedback and answer related to any question team has about
process.
Assure timely information- The timely information result in the effective decision
making. In regards to this, senior management has to be give the information timely in order to
assure the proper direction and supervision. There us balance that requires to be attained among
important information and the unnecessary information. The interactions among the board and
managers are important to assuring that the adequate information is to be given to board. If the
board members request information then senior managers should be promptly respond to request
(Saeidi and et. al., 2015).