Corporate governance

Date: 2015-10-07; view: 485.

Introduction

In previous units we have already focused on the internal environment of business, namely the essential elements of business ownership and the ways in which different types of organization are formed and structured, and also on the role of setting aims and working out objectives to achieve them in strategic planning. In this unit we analyze the strategies and tools used to respond to changing factors in both the internal and external environments, and learn how to apply them to practice.

(1) There has always been lively debate in the business world on the question of whom the business exists for. The question turns in issues of corporate governance, which are about who has ultimate control of the company and the mechanisms for exercising that control. Corporate governance differs from business to business, and will change as a business grows, largely because of the changes which take place in the way the business is financed.

(2) When the enterprise grows and becomes a public company, outside investors gain greater influence as the proportion of shares they hold increases. Most modern shareholders take no part in running the business. They buy shares as an investment only, to see their investments grow and reap annual dividends from the company's profits. As shareholding has spread throughout the population and large institutional investors, such as pension funds, have become prominent, shareholder value has become an important concern for corporate executives in their strategic planning.

(3) In addition, corporate governance has taken on broader implications, as managers have become more aware of the interrelations between the internal and external environment of the company. This broader concept is that of stakeholders. In Unit 1 we have already touched upon this concept. We know that stakeholders can be very diverse. One more thing we should mention is that there is scope for conflict between shareholder and stakeholder interests. For example, shutting down of a plant may please shareholders, but harm employees and the local community. Reconciling the interests of shareholders and other stakeholders has thus become an important consideration for corporate strategy.

►Question/Answer session:

1. What is corporate governance?
2. What considerations should corporate executives take into account in their strategic planning?

►One of the technological developments has been the introduction of automated cash dispensers, which can now be seen not only outside bank premises, but also in supermarkets, airports and other places where customers might need cash very quickly. What is the conflict between different groups of stakeholders in this case?

‘PROS & CONS' POINT

►Complete the table with the information you have come up with and learned so far (the first is done for you):

Table. The main interests of stakeholder groups and types of influence

‘TRANSLATION-2' POINT

►Translate into English:

(1) Понятие корпоративного управления охватывает комплекс отношений между менеджментом компании,советом директоров, акционерами и другими заинтересованными лицами (сотрудниками, кредиторами, поставщиками, местными властями, общественными организациями и т.д.). Корпоративное управление определяет механизмы, с помощью которых акционеры осуществляют контроль над руководством компании с целью максимизации прибыли и стоимости компании.

(2) Основными преимуществами эффективного корпоративного управления являются:

· Привлечение инвестиций

Высокие стандарты корпоративного управления – обязательное требование инвесторов к потенциальным партнерам. Исследование международной консалтинговой компании McKinsey показывает, что инвесторы готовы платить значительную наценку на акции предприятий с высоким уровнем корпоративного управления. В частности, средняя наценка за акции российских предприятий с эффективным корпоративным управлением составляет 38%.

· Рост эффективности компании.

Корпоративное управление оптимизирует весь комплекс бизнес-процессов и, как следствие, способствует увеличению прибыли. Исследование 1500 компаний, проведенное профессором Гарвардской школы бизнеса Полом Гомперсом (Paul Gompers) показывает, что компании, где права акционеров сильны, более эффективны, а их капитализация выше.

· Улучшение имиджа компании

Эффективное корпоративное управление всегда уделяет пристальное внимание заинтересованным лицам, что позволяет примирять часто противоборствующие интересы акционеров и заинтересованных лиц/сторон.

‘THEORY-2' POINT