Through proper corporate governance in an organization, business performance is evaluated in terms of triple bottom line which requires businesses to compel to acting responsibly towards the environment. Looking at one of the elements of corporate governance which is board of directors, we can summarize corporate governance by listing some of key responsibilities that would ascertain the success of a company. It is the role of the board of directors to ensure they report fully on corporate or business activities and more especially on the triple bottom line namely: the Profit bottom line, the social bottom line and the environmental bottom line. This ensures that shareholders and stakeholders are well informed of the business state on the stock exchange. The board of directors has to ensure that the organization acts with integrity and governs the ethical standards, ensuring that these standards are met and
But the problem is how to employ them. The solution might be arrange more flexible work time than others. But there also some issues when the human resource department manage the whole company’s human resource and their own department. Corporate social responsibility The corporate social responsibility refers to when some enterprises make profit and bear the legal responsibility to the shareholders, they must bear the responsibility to the employees, consumers, community and environment at the same time. The corporate social responsibility require the enterprises must beyond the traditional concept “ make the profit as the only goal” emphasized the contribution to the environment, consumers and the society and the value of the human in production process.
CORPORATE GOVERNANCE Corporate Governance is referred as the process through which power of a corporation is exercised to manage the corporation’s total portfolio of assets and resources for maintaining and increasing shareholder value and satisfy stakeholders of the company. Corporate governance expresses the relationship, structure of rules, and process by which authority controls inner corporations. It encloses the mechanism, in which companies and the people be held to account. The good corporate governance enhances the shareholder morale which is very crucial. It gives the guidelines of how to control the business so that it can achieve its goals as well as also profitable to its shareholder for a long time.
When we talk about corporate first thing to come to mind is profits, as the main responsibility for any corporation is to maximize its profit. This was the main argument for the early days, that the corporate sole responsibility was to maximize profits only, as to achieve the most financial return to the shareholders. But those views proofed to be inadequate, as many new arguments arose after that giving a wider scope for the corporate responsibilities, seeing that it should expand beyond the economic reasonability to add new dimensions, primarily the environmental and social ones (Kitzmueller & Shimshack, 2012). Many empirical researches argued the importance of these new dimensions to the corporate, and how it could benefit the firm as well
In the theoretical world of business management, a stakeholder-based approach to management suggests that managers need to formulate and implement many processes to satisfy the numerous stakeholders groups who are the in the firm. The main goals in the process are to manage and to unify the relationships and interests of the various shareholders, customers, suppliers, employees, employers, etc and the other groups in a way to successfully ensure the existence of the business in the long-term. A stakeholder-based approach highlights how the management of the business environment is, the relationships and the promotion of common interests amongst the various stakeholders. There are a large amount of groups who have vested interest in the long-term
STRATEGIC PLANNING Strategic planning is a comprehensive process which includes everything which a business should become and how best it can achieve that goal. Basically it links the business objectives to the actions and resources required to achieve them. While doing this it offers a systematic procedure to ask and answer the most critical questions faced by the management team. DEFINITION George Steiner defines strategic planning as “the formulation of basic organizational mission, purpose and objectives; policies and programmes to achieve them, and the methods needed to achieve organizational ends. WHY DO COMPANIES USE STRATEGIC PLANNING PROCESS?
If CSR is used pragmatically and even strategically it could be beneficial to both the company and the society. It also serves to reduce the ever increasing gap between the rich and the poor. The government alone cannot carry out all the activities that are necessary for the betterment of the society at large. The corporates must extend a helping hand to the government for better future. By helping the government, it makes the work easy and messages and things that are to be conveyed are done easily and help by the industries or organization plays a much vital roles in developing the CSR activities.
DEFINITION Corporate administration is the arrangement of control, practices and procedures by which the organization is coordinated and represented. Corporate administration basically includes adjusting the interests of different gatherings in the organization - these incorporate its shareholders, organization, clients, suppliers, the lenders, governments and society. Since the corporate administration likewise gives the structure to accomplishing the targets of the organization, it covers practically every territory of administration, of the activity arrangement and inner controls for the execution estimation and corporate exposure. Administrative system and practices by which sheets of executives to guarantee responsibility, decency and
Lack of corporate governance is the main constraint of SMEs development. Generally, people are unaware of this concept but when known, should adopt it. There is a strong connection between corporate governance and economic growth and company’s profitability. They are directly related to each other. Much importance has been gained by corporate governance in