Corporate Governance-MBA- 2nd Trimester/ MBS

1. Mission-Driven Governance
Presented by:
Rajz Crestha

2. Contents
• Introduction
• Perspectives On Corporate Governance
• True North
• Causes Of Deviation
• New Governance Practices
• Not Just For Nonprofits

3. Introduction
• Corporate Governance is the technique by which
companies are directed and managed.
• Its effectiveness is measured by the ability to
achieve its mission.
• Boards of directors are responsible for the
governance of their companies.
• The shareholders’ role in governance is to appoint
the directors and the auditors and to satisfy
themselves.

4. Perspectives On Corporate
Governance
• Legal perspective
encourages boards to make sure that bad
things don’t happen.
• Behavioral perspective
encourages boards to make sure that good
things do happen.

6. True North
• Governance is how boards of directors and
executives work together to ensure the success of
their organization
• Every decision an organization makes should be
completely related to its mission
• No decision should be made that deviates from
this direction

7. Causes Of Deviation
• Unclear or misguided mission
• Inability to share responsibility
• Suboptimal board
• Incomplete information

8. New Governance Practices
• Getting leaders to evaluate their governance
performance.
• Building relationships based on trust.
• Articulating the organization’s mission and
strategy.
• Planning for leadership succession.
• Making decisions with the full board.
• Creating systematic flows of information.

9. Not Just For Nonprofits
• Applicable to all type of organization
• Nonprofits are at least mission driven by their very
nature, so it should be more natural for nonprofit
leaders to focus on the organization’s mission.