MANAGEMENT

Corporate Governance, Change and Innovation

Table of Contents

Introduction1

Discussion1

Importance of Corporate Governance1

Leadership2

Trait Theory3

Behaviour Theory4

Contingency Theory4

Transformational Leadership5

Applications of Leadership Theories5

Effect of Power and Influence on Innovation and Change6

Change Management and Leadership7

Ethics10

Organizational Culture and Innovation11

Skills for Leading Change13

Role of Research in the Management of Change in an Organization14

Role of Training in the Management of Change in an Organization14

Role of Opinion Leaders in the Management of Change15

Role of Change Agents in Management of Change15

Conclusion16

References20

Corporate Governance, Change and Innovation

Introduction

A debate with regards to governance is raging in the world today and this is the only strategy that can be used to improve the communities. Many debates are currently being held with regards to it as this will play a crucial role in underlying rationales can help the board of directors to develop practices and policies that improve the governance of their organization and thus improve community's trust in the organisations leadership. This paper has been written with regards to organizational change and innovation and corporate governance. Furthermore, the strength and limitation of the multiple constituencies have also been discussed, and the role of change to bring innovation has also been discussed.

Discussion

Importance of Corporate Governance

Corporate governance refers to the process that provides direction to the organizations, and entails them to covers the accountability, leadership, authority, direction, stewardship and control exercised in the procedure of an organization's management. This is important because it is essential to implement checks as well as balances within the companies to ensure that they are being managed with transparency. Corporate governance plays a major role in enhancing the level of confidence that the investors develop, and it also facilities the relationship between the shareholders as well as the managers of companies. The aim of corporate governance is to enable the functioning of the corporate bodies in an orderly manner and to improve the organization's board of directors to keep tabs on the executives. This ensures transparency, and to foresee the interests of the shareholders. Besides this, the aim is also to lay focus on bringing improvement in the operations of the companies, and also to facilitate the exercise of voting rights, and provide information to the shareholders who have minority rights. Therefore, it deals with the ways that can attract the investors as well as the managers to ensure that the firms care about the profits that the investors receive. Therefore, it concerns the relationships between internal governance mechanisms of the organization and the idea that society has regarding corporate accounting. The aim of corporate governance is to ensure the success of the organization because of which the interests of the shareholders and the investors are taken care of.

Sarbanes-Oxley Act was introduced in 2002, and is also known as Public Company Accounting Reform and Investor Protection Act, but is also known as Sarbanes-Oxley Act. The aim is to enhance the standards of the public companies in the United States. Similarly, there are also some Acts like this which are implemented in the UK to ensure that public accounting is ...