Corporate Governance (2)

I have mentioned earlier in my blog that I spoke of the need of a proper corporate governance in a company to be able to be successful in this world. Oh well, this part will be the second part which I am going to talk about other factors which might influence the success in having a good corporate governance.

We need a good good corporate governance in a company. That is very important because it will post as a controlling arm within the company to ensure that nothing will go wrong in the day to day dealings with companies and also individuals.

No doubt that there are occasions that company directors or employers themselves will help themselves as in not going through the proper channel to get something done. It is like by-passing the management just because he or she owns the company. Well, we have to think twice before doing so. An effective CG will only work if someone is good enough to stand up and speak up.

On a larger scale, think about a company which is listed on the stock exchange for a moment. How well would the company run if not obvious control is going to be practised? One example will be the shopping complex called Harrods in London. We know that it is famous for its special items being sold which are not easily attainable in the UK. Products might be coming from all over the world but what is the key to its success? Mr Muhammad Al-Fayed would not be successful if he does not hold 100% control over his company.

I have done some research and it seems that he runs Harrods like his own army. He runs the company with an iron fists. I have no comments about how he runs his company. It should be good otherwise the company would not be able to withstand all the problems that most companies are currently under - bankruptcy. Yes, he is strict but there is a reason behind it - He is good in doing his job and the company is still making a profit.

Likewise, we have to have zero tolerance in dealing with issues like theft and also collusion among employers and also employees. With the problem being solved, I don't think it will have an difficulty in the success of a company. We need effective employees right from the bottom of the chain (normal workers right up to the chairman of the company [ if any]).

I think I might want to upload my stuff onto this blog soon. Stay tuned.

http://www.alfayed.com/

http://www.harrods.com/

http://en.wikipedia.org/wiki/Harrods