Part III

DBA7035 Business Government and Society

Corporate Governance

Corporate Governance

Corporate governance entails the systems through which corporate entities are directed and controlled (Du Plessis, Hargovan & Harris, 2018).  Corporate governance requires corporate entities to balance the interests of their key stakeholders who include the shareholders, the management, the customers, the government, the suppliers and the community. The main purpose of corporate govern ace is to facilitate an effective entrepreneurial culture under an effective management team that would ensure a long-term success of an entity. This, therefore, implies that a business entity that aspires to be successful must have an effective and committed board of governors. Any company that positions itself as being corporate governance compliant must ride on core principles of corporate governance such as accountability, fairness, transparency and responsibility. This paper discusses the corporate governance structure of Google, the connection between the business and the society and how such connection affects the corporate governance, the future of corporate governance globally and how Google compares with global trends.

Google has a very effective corporate governance structure in the sense that it requires the management team to embrace the long-term innovative approach and make the management have a significant control over the company’s decisions and fate. The company's corporate governance structure is designed to enable it to enjoy a long-term period of stability. For continued success in service delivery, its governance structure allows the board of director to hire external consultants without the approval of the management. This enables them to get expert advice on matters that need guidance so as to provide solutions to the problems that arise. Moreover, the company has a sound relation between the management, the board of directors and the shareholders that make it effective and successful in the pursuit of its business.

The connection between Google Inc’s business and the society is that it remains committed towards its corporate social responsibility to the society by using renewable energy that does not hurt the environment in its business practices. Moreover, part of its energy that remains non-renewable is neutralized via carbon offset projects. Moreover, the company remains environmentally and society friendly by reducing and recycling its e-waste (Trifu, Juravle & Terec-Vlad, 2017). For instance, the components that it uses in its machine upgrade are basically refurbished inventory. However, all these efforts affect the corporate structure in the sense that the company has to make heavy investments in its bid to protect the environment and the society at large. Equally, the society keeps pushing for the satisfaction of its interests which causes the company to relook into its governance structure to meet the needs of the society.

Globally, the future of corporate governance would determine the success or failure of any corporate entity because it would play a key role in determining the companies’ global market. Equally, corporate governance would influence the control the development of business in developing a global economy where governments will have little role to play.

Google Inc. compares with global trends by realigning its operations to meet the needs of all its key stakeholders who might play a significant role in edging it out of the competitive edge. Equally, the company remains committed to ensuring that its corporate governance structure is able to support the needs of its stakeholders so as to remain globally competitive.

In summary, corporate governance entails the systems through which corporate entities are directed and controlled. Google Inc's corporate governance structure is designed to enable it to enjoy a long-term period of stability. Globally, the future of corporate governance would determine the success or failure of any corporate entity because it would play a key role in determining the companies’ global market.

Reference

Du Plessis, J. J., Hargovan, A., & Harris, J. (2018). Principles of contemporary corporate governance. Cambridge University Press.

Trifu, A., Juravle, A. I., & Terec-Vlad, L. (2017). The Economic and Philosophical Implications of the Concept of Responsibility. Ecoforum Journal, 6(1).