EMP Edge has identified eight key stakeholders as shown in the diagram above. Stakeholders can only create value and wealth for themselves if they are able to define, articulate, communicate, share their strategies, goals, technologies, expertise and capabilities, that will produce the desired outcomes for all of them. In the ever changing business landscape this has to be accomplished in real time to respond to the expectations of the stakeholders. These stakeholders have conflicting interests that also need to be managed in real time across business units and enterprises through performance measures that are to context. This can only be accomplished if there is well defined corporate governance (governing principles and guiding principles). Following are some of the suggested principles.
Suggested Corporate
Governing Principles
::
The system by which corporations
are directed and controlled
::
Its structure specifies the distribution
of rights and responsibilities for board, managers,
shareholders and other stakeholders
::
Defines rules and procedures for making
decisions on Corporate affairs
::
Establishes the process for setting
company objectives, means of attaining those objectives
and monitoring performance
::
Require disclosure of corporate structure
and operations
::
The key principles include equitable
treatment, responsibility, transparency and accountability
::
Defines interactions with regulatory
agencies and coordination
::
Protection of the rights of all shareholders
including minority and foreign
::
Clear definition of decision rights
and control separation between shareholders, board and
management (Decision Legitimization, Decision Control
and Decision Management)
::
Achieving equilibrium among various
conflicting interests including extended stakeholders.
