CORPORATE GOVERNANCE
Corporate governance - CG is concerned with the structures and systems of control by which managers are held accountable to those who have a legitimate stake in an organization. It has become an increasingly important issue for organizations for three main reasons.
1 The separation of ownership and management control of organizations (which is now the norm except with very small businesses) means that most organizations operate within a hierarchy, or chain, of governance. This chain represents those groups that influence an organization through their involvement in either ownership or management of an organization.
2 Corporate scandals since the late 1990s have increased public debate about how different parties in the governance chain should interact and influence each other. Most notable here is the relationship between shareholders and the boards of businesses; but an equivalent issue in the public sector is the relationship between government or public funding bodies and public sector organizations.
3 Increased accountability to wider stakeholder interests has also come to be increasingly advocated; in particulate the argument that corporations need to be more visibly accountable and/or responsive, not only to "owners" and "managers" in the governance chain but to wider social interest.
Contact EXCPR now to have your organizations perfect Corporate Governance-CG, info@excpr.com
Fundamentals of Strategy, by Gerry Johnson, Kevan Scholes and Richard Whittington
Corporate governance - CG is concerned with the structures and systems of control by which managers are held accountable to those who have a legitimate stake in an organization. It has become an increasingly important issue for organizations for three main reasons.
1 The separation of ownership and management control of organizations (which is now the norm except with very small businesses) means that most organizations operate within a hierarchy, or chain, of governance. This chain represents those groups that influence an organization through their involvement in either ownership or management of an organization.
2 Corporate scandals since the late 1990s have increased public debate about how different parties in the governance chain should interact and influence each other. Most notable here is the relationship between shareholders and the boards of businesses; but an equivalent issue in the public sector is the relationship between government or public funding bodies and public sector organizations.
3 Increased accountability to wider stakeholder interests has also come to be increasingly advocated; in particulate the argument that corporations need to be more visibly accountable and/or responsive, not only to "owners" and "managers" in the governance chain but to wider social interest.
Contact EXCPR now to have your organizations perfect Corporate Governance-CG, info@excpr.com
Fundamentals of Strategy, by Gerry Johnson, Kevan Scholes and Richard Whittington
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