GOVERNANCE, LEADERSHIP AND MOTIVATION

Governance, Leadership and Motivation



Governance, leadership and motivation

Introduction

Due to policies implemented in recent years by the more developed countries of the world in the field of sustainable development, corporate governance is seen as a commitment to ethical behavior in business strategy, operations and organizational culture embraced implemented, the ultimate goal being pursued corporate reputation. However, in the globalized world in which we find ourselves today, investors, creditors and other stakeholders involved have come to recognize that social responsibility, the environment, and especially those related to governance of an entity is an integral part of performance and medium and long-term sustainability (Kim & Nofsinger, 2007)

. Today, these concerns help to increase profits, and for companies to operate successfully and sustain growth, boards of management must incorporate these new trends, dimensions in their decision-making processes. The global financial crisis has increased the need for guiding groups to provide strategic direction and employ well-argued views that go beyond short-term financial results, thus preparing their companies to a more direct approach apparently risk by anticipating adverse impact on the environment and employees, avoiding to some extent and reputational risks that may arise. It can also generate wealth by creating value for shareholders by increasing business opportunities and greater market access.

Discussion

A new vision of the business is developing, one which lists a set of core values, which include human rights, environment and anti-corruption measures, the relationship with management and accountability to shareholders. Rachel Kyte, Vice President International Financial Group said that "Good corporate governance practices require the companies, visions, processes and structures which ensure long-term sustainability."

Features and tools

8 are the main characteristics of "good governance":

Participation

Rule of law

Transparency

Responsibility

Guidance by consensus

Equality and inclusiveness

Effectiveness and efficiency

Provision Account (accountability)

Importantly, too, the main tools used in Corporate Governance, to ensure control over the management of the property, they are: the board of directors, the independent auditors and the audit committee.

Benefits of Corporate Governance

Good corporate governance contributes to sustainable economic development, providing improvements in business performance, and greater access to external sources of capital. For these reasons, it is so important to have qualified counselors and systems of corporate governance quality. Thus avoiding many business failures resulting from:

Abuse of power - From controlling shareholder of minority shareholders on the board of directors and a third party;

Strategic errors - Result of too much power concentrated in the chief executive;

Fraud - Use of inside information for personal gain, acting in conflict of interest.

Boards of Directors, as a whole, or directors, individually, are key components in achieving the goals or tasks listed above. As said Sir Adrian Cadbury, "Corporate governance is concerned with maintaining the balance between economic and social goals and between individual and group goals." The impetus for understanding this new concept of responsibility the Board can be found in the growing number of global initiatives, namely the specific industries. The most important of these are considered "Corporate Governance Principles" set out by the OECD or "Global Compact" by the United Nations. These principles and values ??set forth by the two organizations, reports on efforts to promote good corporate practices in ...