Leadership and Governance

Leadership & Governance

How, by combining Leadership & Governance, will help a company achieve global competitive power and remain sustainable?

* Corporate governance focuses on the goals for which the corporation is governed.

* Leadership is organizing a group of people to achieve a common goal. Leadership produces theories involving behavior, power, vision and values, charisma, intelligence, among others. Somebody whom people follow, somebody who guides or directs others.

Governance and sustainability

Aras and Crowther 2008

* “Corporate governance has become central to most companies.” 433

* “A company’s main target is to become global, while at the same time remaining sustainable, as a means to gain competitive power. 434

* “Investors are demanding that companies implement rigorous corporate governance principles in order to achieve better returns on their investment and to reduce agency costs.” 439

* “Companies have to improve their strategy and effective route to the implementation of governance principles.” 4 principles: Transparency, Accountability, Responsibility, and Fairness. 440

* “Corporate governance is concerned with creating a balance between the economic and social goals of a company including such aspects as the efficient use of resources, accountability in the use of its power and behavior on its social environment.” 440

* Good corporate governance will address the issue, societal influence, environmental impact, organizational culture, and finance aspect of sustainability. 442

Doppelt 2010 (Ch. 5)

Leading Change Toward Sustainability

* “Changes in governance provide the greatest overall leverage for transformation toward sustainability.” 96

* “Governance… includes the modes of allocation decisions, control, and rewarding rights within and between economic organizations.” 96

* 97

* “When people typically think about governance, they associate it with the decision...