Literature Review

Corporation within the business sector persists to be the ideas of meeting particular requirements that need remain recognizable as having the legal reality, a body separate, and discrete from its proprietors. In most cases, shareholders are the primary owners of a corporation (Chang 2017). They share the profit along with losses generated through the operations of the firms. Therefore, practices of real leadership and appropriate management of cash flow in businesses are the primary two factors that influence the success or failure of a corporation. The corporations with effective leaders together with the capability to keep positive flows of cash are more likely to survive compared to those that do not (Jensen 2002). For management to increase the survival rate of the company, the people who are responsible for making different decisions that affect the operations of the firm must be able to spend time and the useful resources to maintain and train competent managers. They should also be able to develop management policies towards efficient cash flow. Therefore, this paper explores different approaches that make a corporation to be a good one during their business operations.

A corporation that believes that the employees and employers drive their success is likely to create and provide the ideal working environment that offers challenging, stimulating, and financially rewarding opportunities. Identification of working surrounding where of meeting different ideas with enthusiasm by making different employees learn and grow to their full potential is vital. The idea aids in offering tenured and fulfilling careers for employees (Freeman et al., 2007). Various factors can be considerable to help in making a corporation to be a good corporation among it people. Some corporations are just better than others are during their operational processes. Several factors that most people consider to achieve such supremacy by companies relies on the innovation, recognition, share in the market, or the number of other attributes that makes the corporation to stand out from the rest. According to Mehedi (2013), an essential factor for the investor is to be able to spot the eventual winner before they become shareholders. Activities that make a corporation to good in its operations rely on several issues that consist of climate change and population growth around communities. Corporation whose mission requires great individuals that are bright, energetic, and creative while possessing the much-needed values in the competitive marketplaces are likely to make the corporation to be good. Therefore, some of the factors that make an organization to be a good corporation comprise of the presence of clear strategy, effective management of risk, transparency, social responsibility, and self-evaluation among other factors.

Corporation policies in the business sector are only as effective as their implementation by the people concern. In most cases, management of corporation always spends several years while developing the strategy to push into the new marketplace. However, with the push into the market, if the management of corporation cannot mobilize its workforce to implement the strategy of establishing a business, the initiative fails to notice the market. Good corporation governance requires the need of discipline and commitment to implement resolutions, policies, and strategies. The regulation will allow the consistent communication to occur among the shareholders, as every individual will respect each other (Hatfield & Webb 2011). The real corporation must have appropriate communication by obeying every need of an individual. For instance, staffs of a given corporation who care for all customers with admiration that are tolerant and contain the cognitive amount of flexibility (Boatright 2006). Therefore, caring for customers in the similar status allows a corporation to be regardable as good by several people around the society who seeks their products together with services.

Factors that Make a Good Corporation

The idea of explaining the reasons for decisions in a reasonable manner to shareholders by management and panel of directors is essential in meeting all the expectations of customers. The meeting of expectations of different consumers will make a corporation to be a good one within the marketplaces as several consumers will always prefer their products and services for purchase and usage in their operations. The ability to attract investors through the created working environment makes the corporate to be the best within the market (Ryan 2016). The capacity of attracting huge number allows the corporate to focus on stocking a strong selling point to those people who are willing to invest capital in the business venture. Therefore, Building of a disciplined culture where every shareholder is part of the team is important as it improves the operations of the corporate

Equity in conducting business must remain a high priority for every party in the management team. For instance, managers within the corporation must be able to push their employees to be the best as this allows the corporate to be healthy than their competitors in the marketplace. The managers should also be ready to recognize that the heavy workload can have adverse long-term effects. Such effects can include low morale as well as high turnover during their operations. According to Raelin & Fouda (2012), companies need to remain just to their loyal clients because of moral along with reasons of public relations. Ideas of caring for loyal clients unjustly, no matter what the immediate advantages, tend to hurt the outstanding prospects of the company. Therefore, good corporate must focus on ideas of ensuring that all the operations follow ethical ideas as set by the business managers. A clean working environment without cases of business malpractices like bribes and tax evasion should make the corporate to focus on ideas of maximizing profits in the market. Therefore, the elimination of negative externalities within the input factor markets make the cost of opportunity to society of such contributions to remain cheaper compared to the total cost of their acquisition by the firm (Buono 2016). Achievement of good corporate needs an additional unit of any input that helps in the production of an additional unit of any output in business.

In business, managers sometimes tend to keep their counsel by limiting the information that filters down to employees within an organization. Nevertheless, in most cases, the development of corporate transparency assists the companies in unifying their operations to focus on the provision of quality products to their targeted clients. In very corporate, employees always understand strategies for managing a firm. Besides, managers are responsible for the management and monitoring financial performance of the company. The responsibilities set for managers allow them to understand their roles within the company (Raelin & Bondy 2013). Therefore, transparency persists as a major factor to the public who are having doubt to secretive corporations. For a corporation to be right in the business environment, they need to plan and focus on providing their services and products to customers in a fair manner without any form of discrimination and prices variations. All the managers must have the direct obligation of conducting their business operations by the desires of shareholders (Good for business: the rise of the conscious corporation 2014). The greatest virtue to develop a good corporate is the aim of making targeted consumers responsible for their actions and making it easy for managers to explore every factor that affects the purchase and usage of available products from a given corporate.

Effective Management and Clear Strategy

Social responsibility at the corporate level in the business environment is an important factor in the society. Adoption of the broader view of the firm makes a corporate to be useful in their operations. The society expect every corporate to remain as the best member of the community. Therefore, adoption of the broader view of the firm recognizes approaches to enhance exercises of the firm. Adoption of the broader view of the firm also encourages common good by planning to invest in the restricted community to provide goods and services to people (Freeman 2007). However, mistakes within the operations of a corporate are always present despite how well management and board of directors manage their firms. The key issue to make a corporate to be good in its operations in the marketplace is to perform regular self-evaluations. These evaluations are essential in the identification and mitigate brewing problems thus making the adoption of the broader view of the firm to increase and improve their operations.existence of good corporate employee and customer surveyors to supply important feedback concerning the effectiveness of current policies of the corporate. Moreover, adoption of the broader view of the firm focuse on hiring employees outside consultants in analyzing their operations (Ngobo & Fouda 2012) .Such ideas of hiring are essential as they help in identification of different techniques in improving efficiency and performance of the company.  

The adoption of the broader view of the firm can affect the interest of people in the products, operations, and services of the corporate. The view of the company allows people to see how the company works. Therefore, for the development of good corporate, industries must focus on good reputation that remains to be a crucial factor for the company to succeed. Social responsibility allows people to learn about the products that the company offers before they can make a decision of buying or not buying such products for their usage. Therefore, the more people know the products, the better profits companies can create during their operations. Good corporations have to set the working environment to make to their commercials unique and attractive so tat it can attract more clients when they see such products. According to Friedman (2007), most of the good corporates invest the huge amount of money in their commercial operations.

The adoption of the broader view of the firm in most businesses helps in differentiating one firm from others. The corporate governance for different companies in the society has undergone several surveys in the past years and its remains to be the central point in referring to the governance of corporations. Adoption of the broader view of the firm in the society helps businesses to gain momentum as the result of the separation of ownership and control as shareholders have to be confident that director along with managers to be responsible for managing resources of companies. These managers are also responsible for making sufficient disclosures in operating right corporates (Poulakidas 2014). Therefore, good corporate in business climate exist to be the system that aids in directing in the maximization of values of shareholders in the ethical, legal sector and a sustainable manner.

Risk Management and Transparency

The justice and normative theories in business sector focuses on ideas having the clear plan for the management of an organization. They focus on the provision of idea that enables every individual within the firm to concentrate on the set activities. Besides, the variety as well as complexity of approaches that relates to good corporate, there are various proposals that have turn to be mainstream theories on normative in the business sector. Some of the theories comprises of corporate social performance, fiduciary capitalism, corporate citizenship, along with stakeholder theories. For example, various theories have evolved following various notions and approaches in corporate management. The ideas from these theories are essential because they allow the administration of the corporation to create the product line that focuses on meeting the needs of the target marketplaces (Davani 2012). The identification also allows the different corporation and their managements to plan and advertise its wares with the marketing campaign that reaches the targeted and loyal customers directly. At every stage, corporation management must be ready to know the overall strategy (The adaptive corporation 2016). The idea assists the workforce of a company to stay focused on the organizational mission. Therefore, clear set strategy by a corporation allows it to meet the needs of the consumers in every targeted marketplace.

Normative theories present the valuable social concerns by introducing more complexity in the corporate social performance. According to utilitarian views, the right strategy will positively influence long-term corporate performance. Therefore, there is a need for every company that wants to form a good corporation to design as well as implement strategies that comply with legal requirements while meeting the particular requirements of the markets. These strategies help in building the strong, qualified panel of managers, and evaluating performances of employees’ regularly (Jacob et al., 2015). For the corporation to be healthy, the group of its directors should comprise of directors that are knowledgeable on market trends. The managers should also have expertise that is relevant to the businesses that can improve the profits during operations of different corporations. The managers need to be qualified and competent to set and achieve different business strategies (Role of the Internal Auditor Influence and Good Corporate Governance in Banking Financial Performance against State Owned Corporation 2015). Besides, these managers responsible for the operations of the corporation have to be of strong ethics and integrity, diverse backgrounds, along with skill sets essential in improving operations of the corporation. The planning for sufficient time for every operation within the corporation by the panel of directors is vital in making the corporation to be good because every shareholder will be able to commit to their signed duties.

Normative along with justice theories contain significant elements for operations of different firms. The theories concerns with the evaluation of people that can only be justifieable by reference to the concern of an individual. The theory also considers the desires, needs, and interest of an individual (Gordon 2012). Therefore, in considering the two theories in management of corporation, they help in learn how to build and keep the appropriate board that can be of great importance in their operations. The corporation must be in a position to identify the gaps in the current director complement and the ideal qualities, together with keeping with the evergreen list of suitable candidates to be inclusive in need to fill vacancies in the corporation boards. As reported by Chard (2015), the theories present the atomistic vison of society. They also present the necessity of social contrasts for staying together, as sellers together with buyers. For a corporation to be right, the current managers should be able to set a program that focuses on training new recruits as they get a chance to serve a given firm.

Social Responsibility and Self-evaluation

Other theories that lead to good governance include agency, stakeholder, legitimacy, social contact, the circular economy, stewardship, and resource dependency theories. Additionaly, CSR, CSV, and CSV2, the blue economy the effect of externalities on the environment, the circular economy, but also the directors’ primacy model or the enlighted shareholder view are some of the conflicting theories in management of good corporate. These theories show that even if the corporation implements the smart policies, competitors in the marketplace might steal their customers. The legitimacy theories of corporate management shows that with the reduction in some clients within a firm, unexpected disaster might cripple the corporation operations and economic fluctuations might erode the buying abilities of the consumers in the targeted market. Avoiding risk in the process of managing corporation is difficult. The resource dependency theories shows that it is important for every shareholder in a corporation to expand their actions so that the company can depend on profit from various marketplaces, instead of depending on a single market (Friedman 2007). The CSV theory shows that the corporation can comprise of a well-established and formal legal structure as they target to manage occurrences of risks during operation processes (ICCA’S Second International Conference: Globalization and the Good Corporation 2016).

The social contact theory focuses on how establishing the roles and responsibilities remains to be the best approach that corporation can use in ensuring that all its operations are free from any risk. For the best management plan, the corporation has to establish a clear line of accountability for the management team to look and control cases of risks during their operations (Andrews 2013). The corporation should be in a position to create a written mandates for the shareholders and every committee to follow specific duties and accountabilities in ensuring that every activity supports the planned design. Consequently, social contact theory shows that for a corporation to be a good one in the business environment, it must emphasize on integrity along with ethical dealing. The general culture of integrity in the business that deals with the respect and compliance with policies and laws without fear of recrimination are critical as it helps in managing the risk during operations. Appropriate ideas that the organization can use in the management of risk include the idea of adopting conflict of interest policy. It can also set the code of business conduct that aid corporation in setting out the requirements and process of the firm to report and deal with cases of risk occurrences (Gorga 2015). Therefore, such strategy remains as a whistleblower in addressing risks that affect operations of a company.

Efficient Corporation should be in a position to establish the compensation committee that comprises of independent director that will aid in developing and overseeing executive compensation programs in case there a risk in operations of the corporation. Therefore, the stewardship thoery reports that the corporation should regularly be in a position to identify and assess the risks tat they face while operating. These assessments should focus on financial, reputation, environment, legal risks, and industry related risk (Lam & Desmarais 2014). According to stewardship theory, Good Corporation will make its panel of directors to be responsible for strategic leadership towards ideas that focus on establishing risk tolerance of the company as well as creating the structure and apparent accountabilities for managing risk.

Conclusion and Recommendations

The key to building a good corporation begins with the understanding of the shareholders within the operations. There is a range of ways to develop an effective corporation around the business culture, as used by other companies. From the above discussion, good corporate is essential in modern business exploitation and management. Achievements of corporate help in protecting interests of shareholders that avoid agents violate interest, and major shareholders violate minority shareholders interest. The firm should focus on the development of good corporate. The idea is the primary target of several people within the field of business ethics around the world. Formation of good companies plays a significant role in the economy of modern communities. The great relations that shape the good corporate citizenship for the firm include the relationship between the company and the society where it does business. The other relationship of developing the right corporate is the relationships between the company and its shareholders in conducting its operations.

References

Andrews, T. (2013). Downsizing the Thai Subsidiary Corporation: A Case Analysis. Asia Pacific Business Review, 8(2), pp.149-170.

Boatright, J.R., 2006. What’s wrong—and what’s right—with stakeholder management.Journal of Private Enterprise,21(2), pp.106-130.

Buono, A. (2016). Book Review: Corporation, Be Good! The Story of Corporate Social Responsibility. Business and Society Review, 111(2), pp.235-240.

Chang, S. (2017). A case Study on Social Innovative Enterprise and Social Business by Social Network Analysis : focusing on Social Enterprises, Social Cooperative Union, Community Business. Korean Review of Corporation Management, 8(1), p.316.

Chard, L. (2015). Case management: Good for business at MBGH. The Case Manager, 6(1), pp.48-52.

Davani, H. (2012). Globalization, Global Corporation and Government Corporation. SSRN Electronic Journal.

Freeman, R.E., Harrison, J.S. and Wicks, A.C., 2007.Managing for stakeholders: Survival, reputation, and success. Yale University Press.

Friedman, M., 2007. The social responsibility of business is to increase its profits. Corporate ethics and corporate governance(pp. 173-178). Springer, Berlin Heidelberg.

Good for business: the rise of the conscious corporation. (2014). Choice Reviews Online, 47(08), pp.47-4506-47-4506.

Gordon, G. (2012). Culture in Corporate Law, or: A Black Corporation, a Christian Corporation, and a Maori Corporation Walk into a Bar… SSRN Electronic Journal.

Gorga, C. (2015). Four Economic Rights and Responsibilities: Tools to Make the Corporation Serve the Needs of Human Beings. SSRN Electronic Journal.

Hatfield, P. and Webb, S. (2011). Sunbeam Corporation: A Forensic Analysis. Journal of Business Case Studies (JBCS), 6(1).

ICCA’S Second International Conference: Globalization and the Good Corporation. (2016). Business and Society Review, 111(4), pp.477-479.

Jacob Gutu, G., Nyakuwanika, M., Matowanyika, K. and Unganayi, M. (2015). An Analysis of Loan Repayment Performance in Government Microcredit Programs: A Case of Small Enterprises Development Corporation (SEDCO) in Zimbabwe (2009-2012). Archives of Business Research, 3(2).

Jensen, M.C., 2002. Value maximization, stakeholder theory, and the corporate objective function.Business ethics quarterly,12(02), pp.235-256.

Lam, M. and Desmarais, E. (2014). Making the business of “doing good” a good business. The CASE Journal, 10(2), pp.214-229.

Mehedi, S. (2013). Liquidity and Profitability Analysis: A case study of Delta Brac Housing Finance Corporation Limited. IOSR Journal of Business and Management, 15(5), pp.53-59.

Ngobo, P. and Fouda, M. (2012). Is ‘Good’ governance good for business? A cross-national analysis of firms in African countries. Journal of World Business, 47(3), pp.435-449.

Poulakidas, A. (2014). Teekay Shipping Corporation case analysis. Journal of Business Strategy, 35(2), pp.26-35.

Raelin, J. and Bondy, K. (2013). Putting the Good Back in Good Corporate Governance: The Presence and Problems of Double-Layered Agency Theory. Corporate Governance: An International Review, 21(5), pp.420-435.

Role of the Internal Auditor Influence and Good Corporate Governance in Banking Financial Performance Against State Owned Corporation. (2015). International Journal of Business and Administrative Studies, 1(4).

Ryan, M. (2016). Teaching the Common Good in Business Ethics: A Case Study Approach. Journal of Business Ethics.

The adaptive corporation. (2016). Business Horizons, 29(1), p.79.

Wells, T. (2015). The Corporation Game: How to Win the War with the Corporation and Make Them Love It. Academy of Management Review, 3(3), pp.700-702.