Business Governance and Functional Department Participation Plan (original) (raw)

Exploring the Topics of Governance

Topics of Family Business Governance, 2020

Governance is one of the buzzwords in modern management. There are many articles, commission documents, and legal stipulations to define the system of governance in public companies. In the realm of family business, there is almost complete flexibility to design one's own concept of governance which fits in with the needs of the owners and the management. There are many concepts categorizing and specifying the various types of governance prevailing in family businesses. Here we try to work out the common features of all advising boards. To this end, we describe the essential issues which typically emerge in the discussions of a board from time to time. These are topics such as:

A Focus on Corporate Governance and the Relationship with Business

Singaporean Journal of Business , Economics and Management Studies, 2014

Corporate governance and business has become the focus for the 21st century. Corporate governance is about the way power is exercised over corporate entities. Business will ensure that the way companies are governed ethical dimensions and power is exercised over them. In other words, business ethics is inherently part of corporate governance. It is not an optional exercise in corporate citizenship. In today's environment stakeholders have high expectations that companies should be run in accordance with good corporate governance practices. As a practical matter, many companies recognise that to encourage positive behaviours and repeat business with their customers, they need to undertake their business in the right way. Companies therefore draw up their values, embed them with their employees, and monitor that they do business according to them, knowing they will be held to account if they do not. The values espoused include for example integrity, honesty and openness. However not all companies do this. The questions of what is the "right way to run a business" are inherent in all aspects within corporate governance which will include an ethical focus. Corporate governance lies at the very heart of the way businesses are run. The extent to which business decisions reflect values and principles is a key to long term success. The article focuses on various dimensions and obligations and ultimately looks at different elements and stages in relationship to various practices. A focus of Friedman's theory is also provided and ultimately the characteristics of the King Report on Corporate Governance is reflected and discussed.

Good governance, bad governance, effective governance

Purpose of this abstract is to acquire endorsement and patronage to investigate the question of effective governance; to mitigate the notorious agency conflict, reduce losses and assure continuity of the organization.

Two-Dimensional Governance Matrix: A Framework to Evaluate Organizational Governance

Our paper brings a framework to assess governance represented by two-dimensional governance matrix. The matrix is built upon distribution of power between owners and the management. There are two dimensions determining organizational governance effectiveness: first, involvement of owners in decision-making processes and second, stability of governance structure. First dimension is derived from the steps of decision making process (Jensen theory): initiation, ratification, implementation and monitoring. Only an owner keeping both rights to ratify and to monitor can be classified as involved in decision-making process while management's role is to initiate and to implement all important decisions. This configuration is classified as competent approach. On the other hand, shift of monitoring rights from an owner to executive leads to exclusion of the owner from decision-making process which is classified as incompetent approach. Second dimension is stability of governance structure which is characterized by clear definition and differentiation of ownership and managerial performance rights in organizations. Stability can be observed along the lines of clearly specified competencies of governing and executive bodies and rules for election or appointment of executives. Stable governance structure is built upon clearly outlined elements representing interest of the owners. Instable governance structure is demonstrated by vague definition or delimitation of governing and executive bodies and their accountability. A quantitative research design was chosen to verify the two-dimensional governance matrix. We conducted an interview-based survey in hundred Czech organizations. The sample covered organizations of all size and from all sectors of economy, mainly from business environment. Obtained data were analysed through the use of standard methods of descriptive statistics. The interviews were conducted with representatives of the organizations, usually with a member of top level management. Results show that a combination of competent approach and stable governance structure leads to best results and only this model can be assessed as effective governance. The larger is the organization the more important is to adopt the effective governance model. Combination of incompetent approach and stable governance structure leads to strong executive where executive organ carries out the monitoring functions while owner's role become formal but symbolic. Despite this model can result in good economic results, it contains a high risk of misuse of authority which brings instability in economic results. This set-up is typical for organizations with dispersed ownership or publicly owned organization. Third outcome is characterized by a combination of competent approach and unstable governance structure and is called strong ownership. This model is effective in small organizations only and it is inevitable to shift to effective governance set-up in certain phase of growth. Ineffective governance model combines incompetent approach with unstable governance. This set-up is usual for emerging organizations or organizations in crisis. On the whole, our paper brings and easy assessment tool for evaluation of governance shows results and limitations of particular governance models and, provides a useful guideline for manager, owners and stakeholders.

Governance: Everyone's Invited

This article discusses the notion of corporate governance, its practical implication, and also its issues and limitations.

Corporate governance in globalized economy

Today, company Governance is associate inevitable topic of debate in company boardrooms, educational round tables, and for policy manufacturers worldwide. many events are to blame for the heightened interest in company governance. company implosions over the last 10 years and also the future enlarged demand for continuous improvement and transparency within the room have heightened the pace of amendment for boards worldwide. Next few years ar expected to continue this trend. The wave of economic crises of 1998 in Russia, Asia and Brazil, affected their entire economies and deficiencies in company governance vulnerable the soundness of the worldwide financial setup .