Success Tip - Exercise Good Corporate Governance

There can never be genuine CORPORATEand yet few corporates are properly governed. I
GOVERNANCE until the Organization's custodianshave watched with great concern how in some
show willingness to be self-governed by a VALUEorganizations the CEO's autocracy is felt by
system at personal level. Values are not merelyanyone who dares to enter into transactions with
posters for decoration of reception area. Wethe organization. The CEO does the quotation,
rather not have them on the wall and live them.gets the order, supplies the goods himself and
The 21st century has moved from Managementcollects the money. He is the only one whose
to Governance. Organizations not prepared to besignature is recognized by the banks hence he has
ethical and transparent run the risk of becomingdirect access to the money. It is such behavior
endangered species.that ends up creating a lot of talk in companies, a
Corporate governance is most often viewed aslot of heat is created as friction, and speculation
both the structure and the relationships whichbecomes rife. No one know what the accounts
determine corporate direction and performance.look like, what is in the bank, what the word AGM
The board of directors is typically central tostands for in the organization as the CEO views it
corporate governance. Its relationship to the otheras another way to waste His money. As long as
primary participants, typically shareholders andthere is enough money for fuel, newspaper and
management, is critical. Additional participantsschool fees for the CEO's children then the
include employees, customers, suppliers, andorganization is meeting its goals. There is no
creditors. The corporate governance frameworkattention to trust, transparency, openness, value
also depends on the legal, regulatory, institutionalbased systems, care for the employee. The
and ethical environment of the community.leaders are unreachable and hence employees
Whereas the 20th century might be viewed aswallow in the dark with no one communicating
the age of management, the early 21st century isvision, mission and goals. All they do is show up
predicted to be more focused on governance.for work, do their work without being measured,
Both terms address control of corporations butno communication on progress and status updates
governance has always required an examinationon the organization performance. Employees are
of underlying purpose and legitimacy. - - Jamesmade to feel like they are not part of the big
McRitchie, 8/1999vision hence there is high staff turnover. There is
I am shocked at how this word has been abusedalways training and induction going on and it
and used as a mere buzz word in this centuryseems endless.