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How Organisational Stress Affects Corporate Governance

by AppliedCG

In our Applied Corporate Governance methodology, we have Five Golden Rules to guide us towards establishing good corporate governance.

The first three rules of good corporate governance are about an ethical approach to business, a clear and sensible goal which represents an appropriate balance of the collective wishes of the key stakeholders, and a strategy process which reflects the stakeholder approach to the business. The fourth rule is about organisation.

Organisation must follow strategy

Clearly, in order to implement the strategic plan which has been developed to achieve the agreed goal, the organization (that is, how the company is structured) must emerge from the first three rules. This is our fourth Golden Rule. The fifth is a system of communications to the stakeholders which…

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