Corporate Governance: Principles, Implementation, and Impact Analysis

This essay analyzes the importance of corporate governance principles, as outlined by Kelly and White, for organizational change and sustainability. It focuses on the principle of participatory, transparent, ethical, and accountable governance. The essay explores how corporate governance impacts various stakeholders, including employees, customers, and investors. It delves into the areas of corporate governance, such as roles and responsibilities, decision-making, performance, and ethics. The document discusses internal governance mechanisms, including internal auditing committees, and how these mechanisms help in organizing, coordinating, and governing organizations. The essay also highlights the roles of management boards and employees in implementing corporate governance policies, referencing key sources like Kelly & White (2017), Leitner (2016), Olins (2017), and Sadek, Abd & Abas (2018) to support the analysis.

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Author Note

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The new principles which is of the corporate design that is outlined by Kelly and
White are important for the organizations to change the way through which they were
working. It does helps in maintaining a sustainability and develop a different work culture
which is beneficial for the employees. One of the principle that is most important to change
the way the organizations do work now and will help in developing their future is
“Corporations shall be governed in a manner that is participatory, transparent, ethical and
accountable.”
With the growing recognition, there are significant differences that does affect the
activities upon the employees, customers, communities, the environment, competitors,
business partners, investors, shareholders, governments and others. All the leader of the
organization does want that the services that they are providing will have an economic value
which can be indifferent and are independent upon their decision making (Sadek, Abd &
Abas, 2018). The investors do want to see that activities of the organization related to the
corporate social responsibility, which will enhance the business strategy can concern that will
help the organization in performing efficiently and improving their business strategy. The
corporate governance does focuses on several areas which includes the roles and
responsibilities, decision making, performance and effectiveness, accountability and ethics.
The internal governance does have the set of mechanisms and processes, which let the
organizations to organize, coordinate and can govern internally. It also helps in seeking the
actions and can produce standards which are within the organizations that can be also an
internal auditing committee, which will become more transparent in the area of financial
reporting (Leitner, 2016). Thus, the system of corporate governance that are organic and help
in developing the piece meal which can be overtime in the evolution process. The governance
mechanisms do help in developing the corporate activities which can be inefficient,

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ineffective or it does help the management and society. Thus, it helps in appearing the
encompass the external governance and the mechanism of internal governance.
The internal governance does have the sets of processes and mechanisms, which help
the organization is using the organize, coordinate and govern internally. Through the internal
governance, it does help in seeking the actions and produce the standards which came from
within the organizations and can be deployed in various ways (Olins, 2017). Thus, the
internal governance mechanisms are considered as a part of organizational system and can be
viewed as a whole which can be understood and does managed effectively. It is the duty of
the boards of management to make the corporate governance policy which will be based on
the activities and structure of the organization (Kelly & White, 2017). Furthermore, it is the
duty of the managers and employees to carry the implementations that has been done. Thus,
from the above principle it can be seen that what the statement stated that how the
corporations can be governed and through which way their can enhance the roles and
responsibilities, decision making, performance and effectiveness, accountability and ethics.

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Reference
Kelly, M., & White, A. L. (2017). From Corporate Responsibility to Corporate Design:
Rethinking the Purpose of the Corporation 1. In Globalization and corporate
citizenship: The alternative gaze (pp. 67-73). Routledge.
Leitner, T. (2016). Corporate design principles to integrate digital nomads in post-
bureaucratic organisations (Doctoral dissertation).
Olins, W. (2017). The new guide to identity: How to create and sustain change through
managing identity. Routledge.
Sadek, D. M., Abd Rahim, K., & Abas, Z. (2018). Reviewing the Principles of Corporate
Governance in Islamic Financial Institutions. Social Sciences, 8(4), 131-140.