Examining Leader's Role in Effective Governance of Organizations

This essay examines the pivotal role of leaders in fostering effective governance within organizations, emphasizing their influence on socially responsible actions and the establishment of strong corporate governance practices. It highlights the importance of ethical leadership in cultivating cultural values that promote integrity and ethical behavior, while also addressing the potential for misuse of power by leaders and its detrimental effects on organizational performance. Through illustrative examples, the essay underscores the leader's responsibility in driving corporate social responsibility initiatives, maintaining financial stability, and fostering a positive working environment. The analysis concludes that leaders are instrumental in shaping organizational culture, enhancing brand image, and ensuring long-term sustainability by prioritizing ethical conduct and employee well-being. Desklib offers numerous resources for students seeking assistance with similar topics, including solved assignments and past papers.

Running head: LEADER’S ROLE IN EFFECTIVE GOVERNANCE OF ORGANIZATIONS
LEADER’S ROLE IN EFFECTIVE GOVERNANCE OF ORGANIZATIONS
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1LEADER’S ROLE IN EFFECTIVE GOVERNANCE OF ORGANIZATIONS
Leadership is a process through which an individual inspires a group of individuals to
acquire the common target (Yukl, 2013). Thus, effective leadership is very important for every
public, private and civil organization to maintain the quality, achieve goals and provide pre-
eminent services. The effort of the leaders is the main factor in establishment of renounced
organizations. In some cases, misuse of power is occurred which could have negative impact on
the organization. The essay will focus on the role of leader’s in effective governance of
organizations. The following paper will give a brief idea about the role of leaders in influencing
socially responsible action and determine excellent governance in the organization, problems
related to the misuse of power and importance of leadership in developing cultural values for
ethical behavior and integrity in the organization.
Corporate Social Responsibility or CSR refers to the initiatives taken by responsible
corporation for the welfare of environment and society (Schwartz, 2017). CSR does not provide
any direct financial benefits to the corporation, instead provides positive impact about the
organization on the society (Cheng, Ioannou & Serafeim, 2014). The leaders play an important
role in making effective strategies regarding CSR. Their strategies focus on the rights of the
employees and the suppliers in the value chain. They consider the factors like effective use of
environmental resources, recycling of natural resources and carbon foot printing while making
strategies with respect to the wellbeing of environment. Their ability of making such strategies
decides the impact of the activity of the organization on public and the society. Every
organization has to contribute a portion of their profits for social purpose. Thus, effective
strategies are required to influence the socially responsible activities in the organization to
maintain the CSR of the organization and the leader’s role regarding this is appreciable. It is
impossible to achieve the social value for an organization without the effort of the leaders.

2LEADER’S ROLE IN EFFECTIVE GOVERNANCE OF ORGANIZATIONS
Leadership and good governance are correlated to one another. Where effective
leadership can inspire the regime, good governance can provide sustainable leadership to a leader
(Othman & Rahman, 2014). The leaders play an important role to achieve goals regarding
profitability. Their effort to meet customer requirements, betterment the relationship with the
stakeholders and exhibit social responsibilities helps to provide excitatory working environment.
An efficient leader always provides motivation in order to make corporate governance more
effective. Leadership strongly influenced the governance structure, which regulates the corporate
conducts and construct the corporate behavior with responsibility. Improved governance
structure can influence the profitability and efficiency of the organization. Retention of financial
stability of the organization is another factor that depends on the ability of the leaders who makes
appropriate marketing strategies. The leaders also provide opportunities so that the organization
can perform in an effective manner. They try to make strategies regarding corporate governance
in a way that can be proved beneficial for the organization to sustain in the market for long-term.
For example, role model of most of the leaders of every organization, Steve Jobs. He was the
chairperson, chief executive officer and co-founder of the Apple Inc. He is known as the pioneer
of the microcomputer revolution (Cornelissen, 2013). His continuous effort and ability to make
strategies for the development of the organization is the driving force behind the success of the
organization. His remarkable contribution has helped the company to reign in the world of
technology. Another ideal person is Bill Gates, the American businessperson, who is the main
founder of the Microsoft Corporation (Layton, 2014). His ability and hard work are the key
factor for the success of the organization. His remarkable contribution has helped the company to
become the world’s largest software company. Their story is the most reliable source to

3LEADER’S ROLE IN EFFECTIVE GOVERNANCE OF ORGANIZATIONS
understand the importance of the leader’s role in influencing socially responsible actions and
determining the excellent corporate governance in the organization.
The power of leaders in the organization is to provide benefits to the employees by
providing significant working environment. Using such power in an effective way is important to
develop the productivity and increase the profitability of the company. There are some leaders
who misuse their power and the organization has to suffer for this incident. People use their
power of money, designation and strong connection as well. One of such abuse of power in the
work place or organization is known as bullying. Bullying is define as forcing someone to do
something which he or she is not willing to do. In this case the person has to comply with the
requirements of the boss in order to save themselves from being fired. In many cases,
opportunities are not given to the person who deserves it. Corruption regarding financial matter
is also a factor of misusing power (Jávor & Jancsics, 2016). Working under such situation is
difficult for any person. Due to this misconduct done by the leader, organizations lack to retain
efficient workers and it directly affects the productivity and the profitability of such
organizations. Thus, development of cultural values for ethical behavior and integrity in the
organization is important. Culture of the organization decides the way of interaction of the
employees. Ethical behavior from the leaders encourages the employees to stay motivated and
loyal in the workplace. The culture of the organization helps to bring all employees in the same
floor. It also helps to betterment the relationship between the leaders and the employees. This
could help the organization to improve the brand image (Schmiedel, vom Brocke & Recker,
2013).
From the above analysis, it can be concluded that, leaders play an important role in
maintaining the CSR. Their role in providing good corporate governance is crucial. Their effort

4LEADER’S ROLE IN EFFECTIVE GOVERNANCE OF ORGANIZATIONS
is remarkable in sustaining the top position in the market. However, there are some people who
misuse the power, which can be proved disadvantageous for the organization. Thus, maintaining
cultural values, ethical behavior and integrity in the organization is important. It helps the leaders
to create effective working environment and provide better relationship with the employees and
also helps the organization to improve brand image.

5LEADER’S ROLE IN EFFECTIVE GOVERNANCE OF ORGANIZATIONS
References:
Cheng, B., Ioannou, I., & Serafeim, G. (2014). Corporate social responsibility and access to
finance. Strategic Management Journal, 35(1), 1-23.
Cornelissen, J. P. (2013). Portrait of an entrepreneur: Vincent van Gogh, Steve Jobs, and the
entrepreneurial imagination.
Jávor, I., & Jancsics, D. (2016). The role of power in organizational corruption: an empirical
study. Administration & Society, 48(5), 527-558.
Layton, L. (2014). How Bill Gates pulled off the swift Common Core revolution. The
Washington Post, 7.
Othman, Z., & Rahman, R. A. (2014). Attributes of ethical leadership in leading good
governance. International Journal of Business and Society, 15(2), 359.
Schmiedel, T., vom Brocke, J., & Recker, J. (2013). Which cultural values matter to business
process management? Results from a global Delphi study. Business Process Management
Journal, 19(2), 292-317.
Schwartz, M. S. (2017). Corporate social responsibility. Routledge.
Yukl, G. A. (2013). Leadership in organizations. Pearson Education India.