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Governance and Sustainability

Corporate governance is the mode of management of a company in accordance with the stated laws and required statutes of governance. It is the thin line existing between control and ownership. It dictates the management of the company in the right procedures, following the right principles of law, and obeying every code of ethics or conduct. This structure enshrines an environment of trust, moral values, ethics, and confidence that all stakeholders look for in the management of the company. It looks at the concerns of the organizations and evaluates the consequences of its actions in the society. A company that upholds corporate governance creates a good image and earns the confidence and trust of concerned stakeholder, e.g. customers, financiers, suppliers, and investors. On the other hand, sustainability is the carrying capacity of an ecosystem, i.e. the input-output model of resource consumption. Therefore, a company must ensure it undertakes activities that protect and sustain the environment around it for future purposes, e.g. practicing recycling. These two themes relate well to organizational change and development as their disciplined execution leads to favorable change and growth in the company (Aras & Crowther, 2008, p. 435).

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Organizational Change Management: A Critical Review

Management of organizational change is the process of renewing continually the capabilities, structure and direction of an organization in order to serve the ever-changing demands and needs of internal and external customers. Change is feature that is always present in the life of an organization, both at a strategic and an operational level. Therefore, it is not possible to separate organizational change from organizational strategy, or vice versa. Organizational change is very important thus its management is a highly required managerial skill. The need for change is very unpredictable, tends to be ad hoc, discontinuous, reactive, and often triggered by a situation in the organizational crisis. Managers should prepare stakeholders for any necessary changes that the organization has to undergo in order to avoid opposition that may lead to crisis and crumble business operations. Proper change management leads to development of the organization and its sustainable growth. The organization changes to become more appropriate and strategically placed to conduct its businesses successfully. Strategic positioning, business re-engineering and re-organization are the result of prudent change management (Todnem, 2005, p. 373).

Leading Change towards Sustainability

The organization has to implement change religiously in order to achieve sustainable growth and development. However, change that focuses along cultural settings is more likely to lead to positive results than no-progressive change. Cultural settings refer to the organizational culture and traditions. All members of the organization should be aware of these cultures and adhere to them whenever conducting their duties at the organization. Some strong cultural practices in an organization include the process of decision-making, the buying and selling process. Nevertheless, just like in any other community or society, the organization experiences opposition to change both from internal forces and from external stakeholders. This is because most people usually want to maintain the status quo, or fear the wheel of change might jeopardize their business operations i.e. leading to workers layoffs. It is therefore necessary to align change to organizational culture and embed it in the governance of the company. Structural governance of change leads to sustainable growth of the company and gives it leverage points enabling it to role successfully the wheels of development (Doppelt, 2010, p. 93). This enables the organization to sustain its change with time.

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Organizational Change for Corporate Sustainability

Corporate sustainability is the ability of the organization to sustain its operations through the future by depending on the environment and the resources it receives from it. An organization should be in position to sustain its source of resources, while at the same time it should not deplete the environment that surrounds it. For example, a paper manufacturing company should ensure it does not cause major environmental havoc through its logging activities. This is why most paper companies have policies of planting new trees for every tree they cut down for paper production. This sustains it business from now into the future, and protects the environment around it. There will be no cases of climate change or lack of rainfall due to lack of trees in the region. In this regard, all other organizations should also ensure their activities sustain the future growth and development of the organization. Through corporate sustainability programs and policies, the company’s management is able to ensure the future growth and productivity of the company. Therefore, any change in the organization should focus on its corporate sustainability (Benn, Dunphy & Griffiths, 2003, p. 5).

The Green of Organizational Culture

The green revolution has hit the world through the globalization phenomenon. Nowadays, most organizations have to practice use of ‘green and renewable’ energies. The effect of global warming brings with it serious and devastating effects on the economies of different countries, even at a global scene. This in turn affects the market structure within which these companies or organizations trade making them lose out on their market share, either due to high costs of operations, or declining purchasing power of customers. Therefore, to maintain a constant flow of income in view of these new natural changes, organizations adopt a green energy culture. this enables them to save on the cost of productions, and to produce product and services that are renewable and do not have any harm to the environment, i.e. they do not lead to global warming due to emission of greenhouse gases into the atmosphere such as carbon monoxide, carbon dioxide , and nitrogen dioxide. Most companies adopted green energy under their sustainability programs, and embedded it in their organizational culture. For example, automobile manufacturing companies now produce cars that do not use petroleum products to run. Instead, they use electricity. This helped in reducing the carbon emissions from automobiles exhaust, which led to extreme air pollution and global warming (Crane & Harris, 2000, p. 220).

Developing Leaders for Sustainable Business

The changes in organization require able and qualified managers to ensure that they steer the organization properly towards it sustainability goals. Therefore, there is a demand for able and committed managers who will help run these companies according to the required corporate governance mechanisms, and corporate sustainability statutes. This is because a poorly led organizations will end up in business failure especially if the management is not competent to advantage of emerging business opportunities, or able to camouflage and change in order to shield itself from turbulent market waves. The leaders chosen, as managers for these organizations should act with integrity, care for the people and the environment demonstrate ethical behavior, communicate with others properly. They should also be open-minded, take long-term perspectives on the business, and manage the business responsibly for both internal and external stakeholders. These qualities make a manager competent enough to tackle emerging business issues, handle the tides and turns of the business, and direct it to growth and development. They also have skills to manage the company as requires by corporate governance and corporate sustainability mechanism. This leads the organizations to become a green company and ensure its sustainability into the future (Hind, Lanssen & Wilson, 2009, p.12).

CSR and the Building of Leadership Capability

Corporate social responsibility is the way a company acts towards the public and the environment surrounding its business. This is a mode of governance, which gives the organization a good public image if done properly. In most cases, CSR activities gear towards improving the living standards of the people around the business or their stakeholders. Its main agenda is to give them an opportunity to exploit and achieve their potential. For example, a company can build a school to educate the children of their employees, or build a hospital to take care of their employees’ health needs when they get sick, or build sustainable shelters for their workers adjacent to their workplaces, or provide transport for them to and from work. The company can also extend this CSR to external stakeholders such as building a community recreation center for the neighboring village, or build a stadium and sponsor a team in sports and games. Corporate social responsibility does not end with charity events only. It also applies when handling daily operations of the business. It calls for integrity, good business practices, ethics and honesty in provision and delivery of goods and services. Companies that manage to carry out their CSRs properly are at a great advantage as they elbow their competitors out of the way by creating a good corporate image that attracts customers and creates consumer loyalty (Jones & Kramar, 2010, p. 252).

Leadership and Sustainability

The company requires the best leadership in order to engage effectively in sustainability programs such as CSR, corporate governance and sustainability. Leaders are not easy to come by, they start developing from as early as birth. Early childhood development enables children to nurture their leadership skills from an early age. They learn crucial management and leadership skills such as teamwork, spiritual beliefs, and initiatives. As they grow, children learn in schools and other academic institutions teachings of wisdom and integrity that would help them become good leaders. A company that gets the right leadership in its management team manages to sustain its business over the years and become stable and strong. Good leadership secures the company practices, develops good cultures, and maintains their growth and development (Fullan, 2003, p.6).

Technologies and Processes for Human Sustainability

Information technology transformed the way of conducting business and processes of running the company. In using the latest technology, the company is able to run efficiently and effectively their business. With the concept of globalization roving the world, there is increased competition and this makes it mandatory for the company to possess the right technology in order to face the competition as an equal player. If not, the company may end up lagging behind in its performance and processes. Technology also brings into the company core competencies such as improved speeds, quality work, consistent and accurate results, and dependable analysis. This puts the company in a position to seek competitive solutions much easily and thus remain sustainable over time. Eventually, the company will be able improve their productivity and profitability (Read 1994, p. 79).

Globally Fit Leadership: Four Steps Forward

Globalization requires the company to practice global leadership and adopt management practices that would fit them in the global scenario properly. Companies need to take a global perspective in order to become more successful and fit in the global market as equal players in their competitive fields. Managers have to be aware of all global settings and changes in order not to feel the effect of globalization. Globalization increases competition, widens the company’s market share, increases their customer share and grow their returns to global standards. Furthermore, it is increasingly becoming necessary for companies to conform to global quality standards a requirement. For example, many regulatory organizations came up such as the ISO certification, which awards companies an ISO certification that proves it runs according to the required quality standards (Raymond & Smith, 2010, p. 60).

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