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Big companies should create an independent board to ensure corporate governance. It will add tremendous value to the performance of the company. Employees must view corporate governance as managing company performance.
The expected end-results are achieved by taking responsibilities. Employees must feel that they are accountable for their outputs. There is no clear formula on what an ideal corporate structure should be. To avoid the risks associated with business, ethics must be followed.
Management is an art of balancing employee responsibilities, risks and remuneration in such a way as to optimize returns to shareholders, improve managerial performance and ensure transparent working practices. You must pay attention to business ethics and must practice it in true spirit. Ethics should come from the heart. It is an attitude that can be adopted through on-the-job training. One's job description must specify values and ethical principles as one of the key accountabilities.
Corporate leaders must follow ethical principles by setting an example to others. Deeds are more important than emotions and PowerPoint presentations. The management has to find ways to inculcate a culture of excellence by implementing world-class best practices. While allocating financial resources, especially during budgeting, considerations must be drawn to embed ethical principles though it is intangible.
When we link corporate governance principles to performance, we would face measurement issues. What is the relationship between corporate objective measurement and individual performance agreement? How do we differentiate short-term performance vs. long-term objectives? Do we have to forego ethics to achieve short-term goals?
One senior manager pointed out: ''If it is my company, I will expect my employees to implement the best governance model. If I am an employee, I will wait for the top management's direction to do so.''
Whatever it is, many employers say that it is business as usual without any corporate governance model.
• Corporate governance adds value to company performance
• More attention needs to be paid to good old ethical values
• Management must find a way to instill a culture of excellence
Source: Dr. Pon Mohaideen Pitchai, Special to Jobs & Careers
The writer is a Dubai-based HR and Management Consultant