The paper "Vodafone Companys Signature Strength " is a perfect example of a business case study. Corporate governance has created divergent principles governing the operations of organizations. In this regard, corporate governance refers to the system by which an organization is directed and controlled where it outlines the specific distribution of responsibilities between managers and shareholders. In the wider spectrum, it integrates the relationships between stakeholders, bothers external (customers) and internal (employees). Simply put, corporate governance is the design of organizations that enforce management which internalizes the stakeholder’ s welfare in relation to proper ethical conduct.
The various subjects of corporate governance, this paper confronts, presents specific attributes that contribute to its significance in the contemporary business environment. It addresses the attributes of corporative governance in relation to professional ethical conduct. Literature Review Agency Approach The corporate governance, which suggests that the best practices that, might enhance the good relationship between the company and the stakeholders in a company might not be observed fully (Franken, 2014). The agency advocates the importance of the stakeholders in any organization. Managers or agents may not always function to the interests of the shareholders when handling the crude issues affecting the company’ s normal functioning, but they should base their governance on a corporative aspect (Franken, 2014).
Simply put, the managers need to act safe and seek preferred levels of growth since they are more concerned with the company’ s interests. Consequently, the shareholders tend to task decision-making duties to the agents or managers this should, however, dealt with the required attention to prevent the promotion of selfish interests that might end up ruining the organization. Stakeholder Approach The stakeholder approach presupposes a change from the traditional role of the board of governors to an approach that seeks to adhere and protect the stakeholder’ s interest.
A company’ s top management is instrumental in setting values and objectives within which the employees and subordinates follow accordingly (Argandona, 2011). Contrariwise the stakeholder theory advocates for the need for companies to direct their strategies towards the stakeholder’ s interests (Argandona, 2011). As an important feature of the organisation, stakeholders need to feel appreciated as a part of the organisation. In effect, the establishment of an effective board of directors is paramount to any company or organization. The relation between the managers or directors and the workers in an organization is vital since it ensures effective operations.
Individual interests are therefore disregarded during service delivery since they do not achieve the company’ s goal (Franken, 2014). A well-developed market for corporate control is significantly important since asymmetric information, incomplete contracts, immoral code of conduct, are not observed. A number of governance approaches have been created including, but not limited to prudent market competitions, financial institutions and effective board of directors. Analysis The company has over 360 million worldwide customers, where 19 million customers in the United Kingdom.
As a multinational business operating center, its signature strength lies with its governance framework and how it engages with stakeholders on a local and international level. Additionally, the company operates globally, where specific ethical challenges are imminent. The challenges are, however, addressed with respect to its current governance approach as stipulated by its executive committee. The following are the key issues that are considered to determine the code of practice during the normal operations of the Vodafone Company.
Argandona, A. (2011) Stakeholder Theory and value Creation. IESE Business School.
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