Doha, Qatar: Corporate governance refers to the framework of rules, practices, and structures through which a company is guided and overseen. Its purpose is to ensure that businesses have effective decision-making processes and controls in place to balance the interests of all stakeholders. Strong leadership plays a vital role in achieving sound corporate governance by safeguarding the rights of stakeholders, including shareholders, employees, clients, suppliers, communities, regulatory bodies, and the environment.
According to marketing expert, Mohomed Faham Saharudeen (pictured), many companies globally face significant challenges in establishing robust corporate governance frameworks internally. Successful companies attribute their sustainable development to the proper implementation of
good corporate governance practices.
Conversely, mismanagement of stakeholders is a leading cause of failure for many businesses. Focusing solely on investor interests often leads to issues, emphasising the need to prioritise
the well-being of all stakeholders.
He also said that employees are a company’s most valuable asset, driving its success through innovation, creativity, brand building, and operational excellence.
Successful organisations prioritise their people over profits, understanding that happy employees lead to satisfied customers.
Creating a conducive work environment through rewards, recognition, professional growth opportunities, and a positive culture fosters employee happiness and engagement, ultimately benefiting the business.
Additionally, companies must uphold responsibilities towards other stakeholders, including maintaining strong supplier relationships, adhering to government regulations, and contributing to community development.
Effective corporate governance also hinges on the leadership style within the organization.
Leadership qualities such as accountability, collaboration, empathy, fairness, integrity, and courage are essential for establishing a culture of good governance.
While autocratic leadership may be necessary during crisis situations or when decisive action is needed, a participative leadership approach encourages input from multiple stakeholders, leading to higher employee engagement, teamwork, creativity, and overall organisational success, noted Saharudeen.
