Essays on Vodafone Company Governance In Globalizing World Case Study

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The paper "Vodafone Company Governance In Globalizing World" is an outstanding example of a business case study.   Corporate governance refers to ways and means in which an organisation is directed and controlled. It outlines the rights and responsibilities of members in an organisation and also the means and regulations involved in making decisions. Through corporate governance, an organisation is able to conduct business with integrity, openness, fairness and ensures that there are accounting and responsibility towards its stakeholders (Mallin, 2007). To efficiently conduct corporate governance, there is a need to look at a wider set of interests from all stakeholders.

Most of the top organisations have been publishing their corporate governance in their websites and have adopted ways which are aimed at sustainable corporate governance. Corporate governance looks at the organisations and their decision making structures. It ensures that there are no competing interests for the smooth running of the corporation (Gyves, 2008). This report will look at literature review on corporate governance and its frameworks. The report will then analyse corporate governance at Vodafone Plc by looking at key features of the firm’ s corporate governance.

It will then look at how Vodafone Plc engages with other stakeholders, ethical challenges use the argument of theory and integration to comment on the issues. Literature review Corporate governance is one of the pillars of a successful organisation. Bad corporate governance has led to organisations failure. Failures based on corporate governance have led to organisations concentrating more on their corporate governance. This has led to more interests on why corporate fail despite having good corporate governance in place. There are various approaches that have been brought forward to analyse corporate governance.

Most of the analysis of corporate governance has focused on the alignment of the shareholders and managers relationship. This is through addressing transparency, remuneration of directors and the way they influence good corporate governance. Despite this, there are studies which take a holistic approach towards corporate governance. This paper uses a holistic approach to analysing corporate governance (Salami, Johl & Ibrahim, 2014). There are two main corporate governance frameworks which are; agency theory approach and stakeholders’ theory approach. Corporate governance frameworks From agency approach Agency theory is the main theory used in corporate governance.

Using the theory, shareholders are placed as the main and most important stakeholders. The theory has been said to be the main premise between that defines the relationship between the owners and managers who are the agents (Mallin, 2007). The theory looks at the possibilities of conflicts between the interests of the owners who are the principles and agents in attaining the organisation goal. According to the agency theory, the management of an organisation is carried out on behalf of the shareholders. The main focus is on how performance is managed in an organisation for the shareholders and how it’ s reported.

The management acts as agents for the shareholders. The managers are supposed to use funds at their disposal as authorised by the shareholders. This leads to the principal-agent relationship (Mallin, 2007). The managers should ensure that shareholders are able to get maximum returns from their investments. The managers are the custodians of the organisation and management to the best interests of the owners. This leads to a focus on shareholders alone as the main beneficiaries of the organisation business (Lan & Heracleous, 2010).

References

Amiram, G., 2008, “Corporate Governance as Social Responsibility: A Research Agenda”, BerkeleyJ. Int'lLaw. Vol.26, no.2. p. 452.

Carter, D.A., Simkins, B.J. & Simpson, W.G. 2003, "Corporate Governance, Board Diversity, and Firm Value," Financial Review, Vol. 38, no.1, p. 33-53.

Gyves, S. 2008, Corporate social responsibility: an avenue for sustainable benefit for society and the firm? Society and Business Review, Vol.3, no. 3, p.207-223.

Idowu, S.O. & Filho, W.L.2009, Professionals ́ Perspectives of Corporate Social Responsibility, Springer Science & Business Media. https://books.google.co.ke/books?id=AgEifBoKFPEC&pg=PA81&lpg=PA81&dq=vodaf one+engagement+with+stakeholders&source=bl&ots=LypQqDttir&sig=Chw67rM3Troa SLZhShQyIy2oCV4&hl=en&sa=X&ei=c4bVJW5B4GtUPW1g_gD&redir_esc=y#v=one page&q=vodafone%20engagement%20with%20stakeholders&f=false

Institute of Business Ethics, 2013, Business Ethics Briefing, Tax Avoidance as an Ethical Issue for Business, Issue 23. Retrieved 11th March 2015 from, http://www.ibe.org.uk/userassets/briefings/ibe_briefing_31_tax_avoidance_as_an_ethical _issue_for_business.pdf

Lan, L. L., & Heracleous, L. 2010. “Rethinking agency theory: The view from law,” Academy of management review, Vol.35, no.2, p.294-314.

Mainardes, E. W., Alves, H., & Raposo, M. 2011, “Stakeholder theory: Issues to resolve,” Management Decision, Vol.49, no.2, p.226-252.

Mallin, C.A. 2007, Corporate Governance, Oxford University Press, https://books.google.co.ke/books?id=4ZwHBANzAqAC&pg=PA112&lpg=PA112&dq= vodafone+corporate+governance&source=bl&ots=KjvZuZ2TN7&sig=bj2fbj2A5S1KwY MelPI VCn89hZ8&hl=en&sa=X&ei=7X7VOXjKsm8UaCYgtAK&redir_esc=y#v=onepage&q =vodafone%20corporate%20governance&f=false

Salami, O.L., Johl, S.K. & Ibrahim, M.Y. 2014, “Holistic Approach to Corporate Governance: A Conceptual Framework,” Global Business and Management Research: An International Journal Vol. 6, No.3, p.251.

Vodafone Group Plc. 2013, “Stakeholder engagement”, Vodafone Group, Retrieved 11th March 2015 from, http://www.vodafone.com/content/sustainability/our_vision_and_approach/managing_sus tainability/stakeholder_engagement.html

Westphal, J. D., & Zajac, E. J. 2013, “A behavioral theory of corporate governance: Explicating the mechanisms of socially situated and socially constituted agency,” The Academy of Management Annals, Vol.7, no.1, p.607-661.

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