MBA402 Governance, Ethics, and Sustainability

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What is the link between Corporate Governance and Sustainability?

Good corporate governance improves public trust and confidence in its corporate leaders. Legislative processes were created to rescue societies from known threats and prevent problems from occurring or re-occurring. Recent corporate scandals have highlighted the connection between corporations and social responsibility.

The increasing focus on environmental, social and governance issues (ESG) and corporate social responsibility (CSR) increases the responsibility of accountability and corporation of their stakeholders. As a result, we see corporations increasingly pressure themselves to improve best practices for corporate governance to enhance their relationships with stakeholders. One of the biggest motivations for corporations to direct increasing attention toward sustainability is that it ultimately improves the ability of corporations to thrive and prosper.

The Benefits of Good Corporate Governance

As the term denotes, corporate governance refers to how a company chooses to govern itself and is accompanied by rules that provide direction and control to achieve its objectives. Good governance means that your business processes aim to produce results that meet the needs of society and organizational prosperity and make strategic use of its available resources. Being first practised and influenced by leadership - because driving motivation within an organization requires strong leadership - the steady application of these policies and principles will, among other things, create a healthy, compliant, transparent, and accountable corporate Intends to create culture. It is constantly reviewed and improved to ensure that your behaviour aligns with the values ​​your organization seeks to embody. It is the cornerstone of success, enabling growth and competitive advantage opportunities.

Good corporate governance has become a significant focus area for businesses to position themselves in the face of the challenging economic environment.

Some of the advantages of good corporate governance include:

Builds morale, reputation and legacy: Implementing processes that support good governance enhances company identity where stakeholders and potential investors have confidence in you to increase the level of trust, which in turn gives you Allows for developing solid and long-term relationships.

The increases success rate for financial performance and enhances sustainability: The purpose of implementing protocols for good governance is to identify issues quickly and help them make decisions quickly to address these potential issues. So that the crisis can be reduced and its cost can be met. 

Creates more remarkable ability to attract and retain talent: A critical contributing factor to a company's success is a significant focus on culture. Maintaining fairness, accountability and transparency around operations give your employees a greater sense of responsibility and awareness of where they are positioned to create value within an organization.

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