Analysis of Corporate Governance and Organizational Behaviour Report

This report delves into the significance of corporate governance in modern business organizations, emphasizing its role in shaping organizational behaviour. It explores the application of corporate governance frameworks and policies, highlighting the importance of stakeholder involvement, including shareholders, management, employees, and customers. The report identifies common themes and findings related to corporate governance, such as shareholder rights, general meetings, takeover bids, the role of the board of directors, performance evaluation, and audit and financial information. It analyzes four research papers, examining the link between corporate governance and business performance, ownership structure, sustainability, and CSR policies. The report also discusses managerial implications, study limitations, and future research directions, offering recommendations for enhancing corporate governance practices, including increasing capital limits, selecting auditors, and implementing CSR policies. The analysis underscores the importance of effective corporate governance for achieving a competitive advantage and ensuring the sustainable development of business organizations.

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Running head: ORGANIZATIONAL BEHAVIOR
Organizational Behaviour
Name of the student
Name of the university
Author Note:

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Table of Contents
Introduction................................................................................................................................3
Common theme and findings.....................................................................................................4
Different themes and findings....................................................................................................5
Managerial implication of the Articles......................................................................................7
Study Limitations and future research of dimensions................................................................8
Recommendations......................................................................................................................8
References..................................................................................................................................9

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Introduction
The report has identified the use of Corporate Governance in the modern day business
organization and has identified its importance and ways of application in the business. It is
important for the modern day business world to properly identify the use of corporate
governance and use them properly to manage the organizational behaviour. Corporate
Governance has turned out to be a major element of Organizational behaviour (Aguilera and
Crespi-Cladera 2016). It can be best defined as the assembly of laws, policies and practices
of the business that are implemented by the business authority to gain control over the
operations of business. The process involves each and everyone who are involved with the
business including the likes of the stakeholders, management, employees and also the
customers. Corporate Governance importance, in the business organization has compelled the
business firms to formulate frameworks and practice policies based on the governance of the
firms (Liang and Renneboog 2017).
According to, Armstrong et al. (2015) the importance of the corporate governance
process at the current times is filled with risks and process pressures cannot be neglected. The
management of the business organizations take special care in the establishment of the
corporate governance process which is quite important to the organizational behaviour
process and also to ensure the achievement of a special competitive advantage for the
organization. The competitive advantage presents the organization the perfect perspectives to
help in the growth and systematic development of the new process (Kourula Pisani and
Kolk 2017). The different kinds of the application of the new process helps the management
of the business organizations to be able to address the different kinds of the legal and
contractual obligations of the business.

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Common theme and findings
There are a number of different themes and findings that defines the perspectives of
Corporate Governance. The themes of corporate governance attracts a number of debates in
various areas of corporate governance. The common themes and findings includes the likes
of;
a. Rights of the Shareholders- The shareholders of the business organizations can easily
use their rights of the business and participate in different types of formal meetings.
Shareholders must be proactive in nature and must play an active role in using their
voting rights. The use of the voting rights helps the shareholders to have a strong say
on the decisions of the business organizations.
b. General Meetings- The management of the business organizations must ensure that
the shareholders of the business participate actively in different board meetings and
vote in these meetings. The voting rights of the stakeholders in these meetings helps
the shareholders to actively participate in the decision making process of the business
enterprises (Kourula Pisani and Kolk 2017). The practice of a good corporate
governance involves the sending of formal notices and messages to the stakeholders
for participating in the meetings. This kinds of notices are served to the stakeholders
of the business much before the date of the meeting as well as providing the details of
the formal meeting.
c. Takeover bids- The shareholders of the business organizations are generally advised
by the managements of the business against any kinds of takeover bids. The takeover
bids of the organization needs to be assessed by the management in a thorough and
systematic manner that can detect the characteristics of the bid (McCahery Sautner
and Starks 2016). Thus it is important for the management of the organizations to use
safe business procedures and apply the best corporate governance measures to ensure

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the sudden rejection of the takeover bids without the approval in the general meetings
of the business organizations.
d. Board of Directors- The directors of the board are there to implement the interest of
the shareholders by following the different means of the business process. The
management of the business organizations must provide the best opportunities to the
shareholders of the company to participate in the different processes of making
decisions (De Haan and Vlahu 2016). The participation of the people in the new
process can provide the choice and implementation of the best corporate governance
practices and also ensure a strategic competitive advantage for the firms carrying out
business operations.
e. Evaluation of performance- The presentation of the information and raw data on the
remuneration policy of the organizations can be useful for the members of the board
and also useful for business (Kourula Pisani and Kolk 2017). The usefulness comes
from the fact that the sharing of the information includes details about the corporate
schemes and bonus schemes.
f. Audit and financial Information- The financial independence for the auditors and the
presentation of the reliable business information provides a clear audit for the
organizations and presents a clear picture of the financial condition of the business
organization accordingly (Liang and Renneboog 2017).
Different themes and findings
The four different papers that has been selected for the study are as follows;
A. Aicd.companydirectors.com.au.(2019).[online]Availableat:http://
aicd.companydirectors.com.au/~/media/cd2/resources/advocacy/governance-
leadership-centre/pdf/05675-POL-GLC-Corporate-Governance-Emerging-
Themes_A4_WEB [Accessed 2 Sep. 2019].

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B. Aguilera, R.V. and Crespi-Cladera, R., 2016. Global corporate governance: On the
relevance of firms’ ownership structure. Journal of World Business, 51(1), pp.50-
57.
C. Kourula, A., Pisani, N. and Kolk, A., 2017. Corporate sustainability and inclusive
development: highlights from international business and management
research. Current opinion in environmental sustainability, 24, pp.14-18.
D. Liang, H. and Renneboog, L., 2017. On the foundations of corporate social
responsibility. The Journal of Finance, 72(2), pp.853-910.
The research papers selected in the following project is based on Corporate
Governance process. The selected papers has been important for the presentation of different
themes related to the different articles. The study presented in
aicd.companydirectors.com.au (2019) has highlighted the importance of the link between
the performance and governance of the business. The importance of the policy makers and
the extensive use of the corporate governance procedures and its implementation in the
business has been the key to the study of this particular study. The results related to the links
in between the governance policies and the performances of the firm has been quite
inconclusive. The link in between the corporate governance procedures and the performance
of the business firm has been established and described in a much better manner. On the other
hand, the study of Aguilera and Crespi-Cladera (2016) has provided different reviews on
the corporate governance of the different kinds of the modern day business activities. The
ownership structure of the business organizations have been provided special attention as it is
one of the most modern trends in the study of the business organization. The research has
proposed the use of micro data to implement the better use of the different kinds of the firm
specific business practices that are involved in the proper implementation of the new
process..

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The study provided in the article of Kourula Pisani and Kolk (2017) has been based
on the study of the concept of sustainability in the background of the corporate business
affairs. The use of sustainability has become an important topic in the practice of the
international business and management. The modern day business organizations have been
involved in the assessment of the environmental, social, economic and developmental
impacts in the most proper and efficient way. The increase in the thinking of corporate social
responsibility and its application through the means of corporate governance procedures. The
application of the new procedures thus stands out to be an important part of the corporate
governance as its application helps the management of the business organizations to address
the issues of CSR in a systematic manner. The presentation of the CSR policies have also
been properly executed in the research conducted by Liang and Renneboog (2017). The
legal origin of the policies of CSR and the characteristics of the CSR policies have been
explained in a much better manner in the following paper. The providence of the CSR
principles and the relation in between the CSR initiatives and the organizational perspectives
of corporate governance has been presented in the paper.
Managerial implication of the Articles
The corporate governance process is the manner through which the management of
the organizations can have the direct control over the different business operations of the
firms. The presence of the corporate governance articles are effected in the most prominent
manner that helps to strategize the governance structure of an organization and also make the
most of the business organizations to ensure a competitive business advantage in the market
(Du Plessis Hargovan and Harris 2018). The managerial interests thus relates to the different
characteristics of the business including the likes of the;
a. Interest of the shareholders
b. Crisis situation management

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c. Risk management planning’s
Study Limitations and future research of dimensions
The study has failed to address the CSR issues and its solution procedures through the
use of the structured governance mechanism in a detailed manner. The presentation of the
CSR initiatives and the presentation of the implementation processes could have made the
study a much better and informative piece of study (Du Plessis Hargovan and Harris 2018).
However, the research is an overall an informative content with the providence of the major
themes and frameworks related to corporate governance structure.
The corporate governance presentations in a casual manner can be said to be the
boundaries of the organization and thus the management must be extra careful to address the
issues arising out of the governance matters in a professional manner. The professional
address of the issues can help in the success of the organization in the most efficient manner.
Recommendations
The limitations of the corporate governance procedures in relation to its application in
the business firms is a major issue in the research. The limitations can be eradicated with the
smart use of the different kinds of the recommendations. This includes the likes of;
a. Increase of the limits in capital
b. Selection of the auditors
c. Change in corporate governance policies
d. Implementation of the CSR policies
e.

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References
Aguilera, R.V. and Crespi-Cladera, R., 2016. Global corporate governance: On the relevance
of firms’ ownership structure. Journal of World Business, 51(1), pp.50-57.
Aicd.companydirectors.com.au.(2019).[online]Availableat:http://
aicd.companydirectors.com.au/~/media/cd2/resources/advocacy/governance-leadership-
centre/pdf/05675-POL-GLC-Corporate-Governance-Emerging-Themes_A4_WEB [Accessed
2 Sep. 2019].
Armstrong, C.S., Blouin, J.L., Jagolinzer, A.D. and Larcker, D.F., 2015. Corporate
governance, incentives, and tax avoidance. Journal of Accounting and Economics, 60(1),
pp.1-17.
De Haan, J. and Vlahu, R., 2016. Corporate governance of banks: A survey. Journal of
Economic Surveys, 30(2), pp.228-277.
Du Plessis, J.J., Hargovan, A. and Harris, J., 2018. Principles of contemporary corporate
governance. Cambridge University Press.
Kourula, A., Pisani, N. and Kolk, A., 2017. Corporate sustainability and inclusive
development: highlights from international business and management research. Current
opinion in environmental sustainability, 24, pp.14-18.
Liang, H. and Renneboog, L., 2017. On the foundations of corporate social
responsibility. The Journal of Finance, 72(2), pp.853-910.
McCahery, J.A., Sautner, Z. and Starks, L.T., 2016. Behind the scenes: The corporate
governance preferences of institutional investors. The Journal of Finance, 71(6), pp.2905-
2932.

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Tricker, R.B. and Tricker, R.I., 2015. Corporate governance: Principles, policies, and
practices. Oxford University Press, USA.
Yu, X., Krause, R.A., Bell, G. and Bruton, G.D., 2016. A Configurational Exploration of
Family Relationships, Corporate Governance, and Firm Performance. In Academy of
Management Proceedings (Vol. 2016, No. 1, p. 10063). Briarcliff Manor, NY 10510:
Academy of Management.