Management and Organisation Corporate Governance and Sustainability

Question: Discuss about theManagement and Organisation for Corporate Governance and Sustainability. Answer: Introduction: In todays era where the economy is uncertain, it is necessary to build a strong ethical environment by practicing corporate governance. An organization comprises of people from different background having similar objective and goals. A company needs a strong manager, to supervise the staff towards completing goals. Managers are one who are responsible for solving the problems and act as a supporting system to the organization. A manager has to fulfill many roles like he has to lead the organization in achieving their targets. He has to get desired work done in good faith of the organization (Sunday, 2012). Modern organization believes in involving employees in the decision making and distributes authority depending on individual interest. Modern organization focuses on achieving individual and group goals (Hatch and Cunliffe, 2013). Managers appear in every organization which wants to succeed. The success of an organization is completely dependent on the working of the managerial force. They have a task to solve issues and set required goals for the organization. Managers are filled with responsibility to achieve desired goals. They are responsible for success and failure of the organization. Hence managers are the coordinator who administers all the resources in order to procure the best result. They have to ensure that the organization is working on the concept of corporate governance (Sunday, 2012). Sustainability has gained importance in recent times. It is been highlighted in all the major global issues. Sustainability is an important concept which highlights environmental, social and global issues it works on a broader concept. It is necessary to understand sustainability in context of the recent corporate atmosphere. The ethical importance of sustainability adds on to the concept of good corporate governance. (Becker, 2011). Sustainability has gained importance in the recent era due to its applicability in daily working. The concept of sustainability is related to the continuity which means that the organization will run for an indefinite period. Secondly it is the orientation which refers to the scientific concept related with the organization. Thirdly the concept of sustainability deals with the fundamental relationship between human and their contemporized world. Sustainability is hence not only continuance but building and maintaining human relationship with the continui ty. Human nature relationships are crucial in the world where the life is dependent subject to change in environment (Aras, 2016). Corporate governance has gained importance in the twenty first century. Organization without a governing strategy faces risk. Corporate governance works on the concept of Accountability, Responsibility, Honesty and Transparency, Integrity, Openness, Mutual respect Performance Evaluation Commitment. Corporate works under a legal framework which is set by the law and the regulatory framework. The company is answerable to its stakeholder for any discrepancy caused in the organization. In 80s and 90s companies were governed by the concept of greed which was trashed in the 21st century due to increasing importance of the concept of good governance. Hence corporate governance is the combined statutory and non statutory effort made by the directors and the board (Calder, 2008).Business ethics focuses on what is right and what is wrong. Due to changing business environment there is a need to look into the ethical matters. Business ethics are essential for the sustainability of the organizati on in long run. Most importantly business ethics set a benchmark for the company to provide its services within the stipulated area. Somewhere between professional and ethical code there is a necessity to follow fair rules and regulations. Professional misconduct may lead to discrepancy which will affect the working of the organization. It is a new age concept to manage the rights and build an atmosphere which will affect the working of the organization (Monks and Minow, 2008). Good corporate governance ensures long term growth. . Corporate governance has a potential for high growth as compare to those organization which are not following corporate governance. Large organization has understood that in a long run the most important aspect is to look forward into the average profits rather than focusing on high profits. The importance of business ethics arises as people are more concerned of individual benefit rather than focusing on ethical values. It is very much essential to shift peoples interest towards the ethical aspect rather than focusing on the individual and organizational profits (The Importance of Business Ethics, 2009-15). For overall sustainability of the organization it is important to focus on the ethical nature of the organization rather than focusing on the individual interest. In modern organization sustainability is given more importance. Sustainability arises due to general awareness. Government has understood the importance of the ethic al code of conduct. Business ethics are also importance for reducing the overall cost and risk. A highly ethical organization will spend less on the overall protection and this will probably work in effective business organization. This provides overall motivation to the organization and helps in maintaining high standards. (The Importance of Business Ethics, 2009-15) More than half of the companies which prepares sustainability report has developed a statement on corporate governance. Many companies do not notify the relationship in between the sustainability and corporate governance. Corporate governance report is equally important to the financial report. But they are related with accountability and transparency. Corporate governance is incorporated in the annual report of the company. The sustainable development report has gained importance due to focusing on the overall competency of the company (Kolk, 2008). (For example, Telecom Italia) Modern management theories are contracted by broken method which separates human from the nature. The various organizational theories are classical theory, neo classical theory, system theory, contingency theory, and interaction and post modern approaches. Ethical theory plays a key role while following the sustainability in an organization. Ethics play a key role while dealing with the outside world it is the necessity of the organization to maintain coordination in between the society and its internal management (Miles, 2012). Internal management need to focus upon the development of the organization which can only be ensured upon sustainability. An organization can work on a long run if it follows the sustainability model. In a long run ethics play a key role there are various stakeholder whose interest resides with the interest of the company. It is very much important to focus on relevant organizational theory while focusing at various models which are essential for the organiza tion. In long run stakeholders are important to the organization while building good relationship. The importance of corporate governance is increasing due to high rates of discrepancies occurring in the business. It is the global necessity in order to focus on the growing concept of sustainability. No organization can perform well if it doesnt have proper sustainability structure (Hatch and Cunliffe, 2013). The real forces which governing the ethical behavior are the organizational theory of sustainability which means if a organization wants to sustain for the long run it is necessary to develop a strong model which focuses on the ethics and values. Corporate governance and sustainability has gained importance in the recent era due to various issues seen in the recent years. It is necessary to focus on the concept of sustainability if the organization wants to survive it need to follow the sustainability model. Due to current insurgency and recent changes in the business environment the corporate governance is earning more importance apart. In a modern organization which has much complexity sustainability has derived a huge importance. The world needs to understand the importance of the business ethics in regular practice. Sustainability and ethical theory need to be practiced while managing the modern organization. Modern organizations are based on sustainability. They can only survive in this competitive world by following corporate governance. References Aras, G.2016. A Handbook of Corporate Governance and Social Responsibility Corporate Social Responsibility. CRC Press Becker, C.2011. Sustainability Ethics and Sustainability Research. Springer Science Business Media Calder, A.2008, Corporate Governance: A Practical Guide to the Legal Frameworks and International Codes of Practice. Kogan Page Publishers Hatch, M. and Cunliffe, A.2013. Organization Theory: Modern, Symbolic and Postmodern Perspectives. OUP Oxford Kolk, A.2008. Sustainability, accountability and corporate governance: Exploring Miles, J.2012. Management and Organization Theory. John Wiley Sons Monks, R. and Minow, N.2008. Corporate Governance.US: John Wiley Sons Multinationals' reporting practices. Business Strategy and the Environment Volume 17, Issue 1, Pages 115. Rule 1: The Importance of Business Ethics.2009-15. (Online) Available on: https://www.applied-corporate-governance.com/importance-of-business-ethics.html (Accessed on 9 September 2016). Shaw, W.2016. Business Ethics.US: Cengage Learning Sunday, N.2012. Organizational Theory Practice: Management made simple. GRIN Verlag