Governance, Values and Ethics in the 21st Century

Ethical leadership, a culture of good stewardship and embedded best values have always been essential attributes for good governance and long term success in every organisation. They are still essential for the 21st century. All are no longer a luxury but a necessity for civil societies in every country. Sadly this has not always been so and is not today. Yet all must be the driving strategy and ambition for every organisation. Not only as compliance with laws, regulations, standards and codes of practice, but as a vision for a better future for everyone in today and tomorrow’s world.

In today’s global living and market places we are all touched by events happening across the world almost instantly through public media and personal contacts. Long gone is the time when adverse events which impact our planet, living standards and welfare could take place unnoticed. All news travels fast and faster and is more open and transparent than yesterday. We see many times the reputations of organisations being tainted by bad governance, unethical business practices, and disrespect to the environment with serious consequences for those who are employed and all their stakeholders. These events, in many cases, could have been avoided by good governance practices, including the right responsible leadership policies for stewardship, values and assurances.

Such good governance practices have many definitions by governments across the world, regulators – national and international – and other institutions, but all have the following in common:

They:

  • Facilitate effective, entrepreneurial and prudent management to deliver long-term success* across not only businesses nationally and globally but also all governments and civil societies.
  • “Align purpose, strategy, values that achieve long-term success”* in today and tomorrow’s regulated and permanently changing global economic, sustainable and social environments.
  • Are based on a culture of “Openness, Integrity and Accountability which go together”* to create an organisation with a public reputation for good behaviour and conduct.
  • Engage and “impact on a wide range of stakeholders, globally, nationally and locally”* in every organisation.
  • Help the Board to achieve a good “…environment of Trust”* in its stewardship of Performance, Compliance and Assurance responsibilities.

The global financial crisis, corporate scandals and collapses, and public concern over the apparent lack of effective boards have all contributed to an explosion of interest in good governance practices. We have been witnessing many years of development and improvements of governance codes and regulations around the world. Notwithstanding, ongoing discussion is still very relevant about why organisations should care and who is responsible for good governance. Sustainability, ethical corporate values, and how to increase awareness about governance amongst individuals in our society at all levels is very relevant today and will always be so tomorrow. Not surprisingly, the answer, which seems perhaps too obvious but very challenging is to embed a good governance culture in every organisation.

The Lincoln International Business School has developed the new MSc Governance degree to launch in September 2018 designed to be relevant across different sectors and to appeal to a variety of applicants, including qualified professionals who might be interested in multiple entry routes and possible module exemptions based on relevant professional experience or qualifications. The programme has been developed in collaboration with the Institute of Chartered Secretaries and Administrators (ICSA) – The Governance Institute, to meet the professional and employers’ needs, and to reflect on the challenging complex natures of the modern business environment.

The MSc Governance is structured with a focus on practical application in the business environment and aims to provide students with strong subject knowledge and the latest thinking in the world of Governance, Sustainability Reporting, Business Ethics, Organisational and Board Effectiveness, Finance, Law, and Strategic Thinking. Students will have the opportunity to put their skills into practice by taking on a client based project as an alternative to the traditional dissertation (subject to approval).

Lack of strategic thinking has been repeatedly identified as a major weakness in organisations, where business leaders often rely on past experience and best practice, ignoring creativity and imagination. The programme explores how individuals and organisations anticipate and shape the future to create a competitive advantage. Some appropriate examples of the state-of-the-art practical applications of strategic thinking will be provided by visiting speakers.

The programme also provides the opportunity to increase awareness of governance of information, risk management, information technology (IT) and the impact of cyber security, themes which are increasingly important in the business world. Moreover, the programme considers the role of IT in sustainability governance, a range of ethical questions that arise from the use of information technology in business, and how IT can support organisations’ sustainability strategies.

With all organisations facing risks and greater potential impacts of their activities on society, the issues of sustainability are more critical than ever. Sustainability is no longer about risk and compliance, but also about innovation and how to achieve excellence in both sustainability and financial performance. With support of the Institute of Business Ethics (London), the programme aims to develop a sound understanding of the processes and the oversight which drives the highest standards of governance, leadership, accountability, sustainability, ethical behaviour in business, and the ability to sustain long-term success.

 

Authors:

Nadia Gulko, Senior Lecturer/Programme Leader, Lincoln International Business School, University of Lincoln

Professor Jeffrey Ridley, Visiting Professor in Corporate Governance Assurance, University of Lincoln

* Quotes in italics from the following statements: all can be downloaded from the web

–  The Committee on the Financial Aspects of Corporate Governance (1992), Gee and Co. Ltd, London, England.

–  Organisation for Economic and Co-operative Development (2015), G20/OECD Principles of Corporate Governance, Paris, France

–  Department for Business, Energy & Industrial Strategy (2017), Corporate Governance Reform, London, England.

–  Financial Reporting Council (2017), Proposed Revisions to the UK Corporate Governance Code, London, England.