Governance Is an Essential Component

¶ … governance is an essential component of economic success. Without good governance, particularly in large businesses, it is unlikely that cohesion will result, and hence economic success is likely to be elusive. Jung & Wolfensohn (1999) take this concept to both a higher and wider level. They address the concept of governance and the economy on the scale of governments and countrywide growth. Indeed, the authors hold that good governance entails not only the correct appearances, but also the correct actions in terms of integrity and accountability.

A country's economy can only grow when that country's government works together with businesses in a transparent and honest manner, for the benefit of all and not just a few. In the same way, the individual business can grow only once all employees and employers work together as a unit for the benefit of all. A lack of good governance will mean a scattered business and a lack of focus. No business can grow on such grounds. 2.

The Sarbanes-Oxley Act (SOX), has been implemented to promote accountability in publicly traded U.S. companies. This came in response to such disasters as Enron, Tyco and Worldcom. The Act requires a number of measures, including the involvement of external auditing professionals to ensure the integrity financial reports, as well as the almost real-time disclosure of any material changes in the company's financial situation (Information Guide, 2006). I believe that these provisions will make it much more difficult for companies to slip beyond financial control.

The penalties for noncompliance are harsh, and compliance more or less necessitates honesty in disclosure. I also believe that the presence of SOX would have saved Enron, Tyco and Worldcom from their scandals, as financial wrongdoing would have been detected long before reaching critical mass. 3. The most important elements of good governance include the ability to create unity among workers, the ability to conduct business with integrity, and communication. A single focus is vitally important in business and in governance.

Such focus can be achieved via company policies such as the mission and vision statements, and the involvement of all personnel in creating these. Integrity in both leaders and employees are also important. Dishonesty in either could result in disaster for companies. Communication is the element that unites everything else. Employers should encourage employees to communicate either grievances or suggestions. This opportunity will result not only in better mutual understanding, but also in loyalty that arises from being valued as an employee. 4.

I certainly would want to do homework on any company I enter for the first time - and particularly one where my predecessor left under a cloud. It could mean many things, which my investigation is obviously meant to reveal. It could mean that the person who left was him- or herself not honest and brought about an unsavory situation. It could also however mean that working conditions became such that the person had no other choice than to leave, even if it meant that unsavory reputations would remain.

I would want to thoroughly investigate to determine what the situation was and whether I can viably avoid the same fate. 5. Workplace values have evolved rapidly over the last century or so. For me personally, the most important values include a family friendly workplace, and a company that values both diversity and uniqueness in its employees. If I were an employee who chose to have a family, I would want my.