Discussion:
Managing and Balancing Governance Describe how leaders manage and balance the duties of corporate governance, compliance, and regulatory issues with the needs of their stakeholders, while also satisfying competitive demands of the marketplace.
Post 1
A manager of a company is always looking out for different issues that may come up when running the company. Issues can come internally, externally, or when the two roads meets. It is important for managers to keep all stakeholders in mind, and make sure that each feel like they are being listened to and meeting their needs. It is also important for them to remember they are running a company and need to stay competitive in the market.
A manager needs to be able to obey the corporate governance that is set up by the organization. These are rules, practices, and processes that have been put in place to help direct and control the company internally (Investopedia Staff, 2018). This should be relatively easy for a manager to manage, because they are a part of the organization. The goal of the organization should be the same, but it is the manager’s job to connect the goals of management to the employees. These goals should also want to keep the company competitive.
Regulatory issues usually comes directly from the government, or from the governing body within the market. These regulations can be to help make a better image for the market, or to create a more competitive market (Berte and Vujovich, 2015). For a manager, they need to create a plan that will satisfy new regulations, while still trying to appease stakeholders. Stakeholders may not be educated in new regulations, so making sure there is understanding about the changes will be important to the success. The faster there can be changes made, the better a company can be competitive in the market. If the changes are made in the entire market, being able to make changes quickly can lead to a competitive advantage.
The true test is when it comes to compliance issues. These are usually issues that have been around but need to be changed before government steps in (Trainor, 2012). This is where corporate governance and regulatory issues can meet. For a manager, they need to stress the importance of making changes to the stakeholders, but still make sure they are going to follow rules set by the company. It maybe be hard to make these changes, if stakeholders do not see the changes meeting the demands of the market, they have been operating in.
References
Berte, E., &Vujovich, C. (2015). Balancing Stakeholder Interests and Corporate Values: A Cummins Strategic Decision. HBS. Boston, MA: Harvard Business School Publishing.
Investopedia Staff, I. (2018). Corporate Governance. [online] Investopedia. Available at: https://www.investopedia.com/terms/c/corporategovernance.asp [Accessed 22 May 2018].
Trainor, G. (2012). Importance Of Compliance in Business – How to Learn | World’s Leading Site for Learning Resources. [online] How to Learn | World’s Leading Site for Learning Resources. Available at: https://www.howtolearn.com/2012/08/importance-of-compliance-in-business/ [Accessed 22 May 2018].
Response 1
I agree with you that a manager in the company can face different internal and external issues. I am being a manager of the company; he must have to contain the effective business intelligence to derive different insights and make better decisions in the best interest of the company. Integrating with the company and business regulations are a good approach for the manager along with the considerations of all key stakeholders. With the passage of the time, the change is necessary for the manager in the company, and he has to streamline his role to make the difference. I also agree with you that the manager in the company has to depict the effective and pertinent leadership to make some changes. To gain and sustain the sustainable competitive advantage in the competitive market, the role of the company’s leadership is quite crucial. It is a fact that the corporate governance and regulatory issues are integrated with each other (Barker & Chiu, 2017). Combining them and make some changes in the company can be the top priority of the manager. I appreciate all your concerns regarding the regulatory issues, changes and the possible impact on the organization. When making some changes in the company, it is important to integrate with all key stakeholders. Mutual concerns in the corporate sector are important, which enhances the visibility of the integrity. In this contemporary business era, the manager has to shape his behavior to understand or perceive these business issues and make some appropriate decisions. Of course, the company intends to meet management needs through these considerations. Overall, all insights are well elaborated with a good understanding of the business, marketing and management process (Gospel & Pendleton, 2006).
References
Barker, R. M., & Chiu, I. H.-Y. (2017). Corporate Governance and Investment Management: The Promises and Limitations of the New Financial Economy. Edward Elgar Publishing,
Gospel, H. F., & Pendleton, A. (2006). Corporate Governance and Labour Management: An International Comparison. Oxford University Press.
Post-2
Compliance means incorporating standards that conform to specific requirements, regulatory compliance is the regulations a company must follow to meet specific requirements (Thrive, 2017). These regulations can be different depending on what kind of industry you are in and rules and laws are followed. Compliance, regulatory issues, and corporate governance are currently the mainstream considerations with regards to business decision making to enhance financial performance, meet stakeholders’ expectations, and gaining competitive. Managers in most companies are being forced to place the most emphasis on how they are adapting to social responsibility but still following the company’s mission and vision statement. Even though it is important to keep your stakeholders and customers as involved as much as possible in any issues that arise, they may not be the first people informed depending on how it can affect the business. As an example, a company may have a lawsuit against them; in that lawsuit it says that a person that used to work for the company is accusing the company of not providing services that they are billing for. In this situation, attorneys are involved and until the truth can be provided the less people that know the better. Stakeholders can be informed that there are compliance issues etc. but complying information to the attorney to show that the services being performed are valid. Even though they will have consequences in the future with the customers, showing the customers that there is no wrongdoing is most important. There are marginal non-financial issues and very relevant with regards to profit maximization; besides, they are adopted as strategic components to meet stakeholders’ changing demands with greater emphasis on ethics, values, standards, policies, and tools which entail good practices.
Reference
What is Regulatory Compliance? (2017, December 21). Retrieved May 22, 2018, from https://www.thrivenetworks.com/blog/regulatory-compliance
Response 2
I agree with you that the business regulations can be different in different industries. It is necessary for the management of the company to follow the rules and regulations regarding the business to maintain the business sustainability in the particular industry. The compliance and regulatory issues in the company should be streamlined by the management to have pertinent solutions at the right time. I also agree with you that the company must have to align with the corporate rules and regulations to make a good reputation and enhance the financial performance. Also, this company can be in the better opposition to meet stakeholder’s expectations in an effective and lucrative manner. I appreciate your concerns about the management considerations. For Instance, modern managers intend to contain the corporate social responsibility. However, on the other hand, they intend to a follow the mission and vision of the company to meet goals and objectives. It is a big contradiction, and it must be eliminated to direct the business on the right path (Hilb, 2016). You are right that the managers must have to focus on the nonfinancial issues in the business environment to enhance the profitability of the company. Analyzing the market and meeting the customer demand has an indirect impact on the financial performance, and it seems in the best interest of the company. Values, standards, and policies are some key strategic components. The manger ion the organization is looking to prefer these components to create the best impact on the business. Ultimately, the firm will be able to gain and sustain the competitive advantage for a long run in the competitive market. All insights are comprehensively elaborated. The manager can derive the modern business a need early and ensure the success of a long run in the contemporary business environment (Jalilvand & Malliaris, 2013).
References
Hilb, M. (2016). New Corporate Governance: Successful Board Management Tools. Springer.
Jalilvand, A., & Malliaris, T. (2013). Risk Management and Corporate Governance. Routledge.
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