GUIDELINES FOR CREATION OF VALUE-BASED GOVERNANCE
Following are some guidelines on how to promote value-based governance through value creation for workforce, customers, investors/share-holders and society.
Creation of Value-Based Governance
1. Value Creation for Workforce
An organisation culture should create a sense of commitment in the workforce. They must love their job and should be a dedicated lot and this must be reinforced by the management.
2. Value Creation for Customers
The survival of the organization depends upon the necessary expertise and capability to satisfy global markets. Customers are awakening individually and collectively day-by-day regarding their rights. Growing awareness of needs and rights is changing their behaviour. Customers are becoming increasingly assertive in demanding high quality products and services and they are no more passive onlookers, as they used to be.
3. Value Creation for Investors and Shareholders
Shareholders, investors are the company owners, they have the legitimate right to expect proper return on their investment. So, fair and ethical treatment should be provided to them in the following manner:
• The money invested by them should be judiciously used.
• No personal expenditure should form part of the investor’s money.
4. Value Creation for Society
Organisation exists within a society and their members are drawn from the society. The organization has it’s own values and norms towards society. Thus, business owes it to the society, first on account of consequences of it’s own operations and secondly, for being a part of the society in which it operates. Like an individual, a firm should be viewed as a member of the society and accordingly, is expected to behave as a responsible citizen.
• Business organizations are expected to play a leading role in solving some of the major social problems.
• They should not create nuisances.
• Proper measures should be taken for disposal of industrial pollutants.