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Corporate Governance

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What is the relationship between self-motivation of management and effective corporate governance?

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This solution explains the relationship between self-motivation of management and effective corporate governance.

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1. What is the relationship between self-motivation of management and effective corporate governance?

Some companies are driven by self-motivation of management through the corporate governance process. These companies are more productive. In fact, corporate governance today must avoid over-regulation and sidestep unfair demands on companies. Even as the regulations and laws are expected to be complied with, some companies are driven by self-motivation as well, often guided by doing the right things at the right time, with management self-motivated to meet their companies objectives, values and codes of ethics and conduct.

One identified self- motivated company is Infosys Technologies and Dr Reddy's Labs. Self-motivated good ethical practices by management enhance a company's reputation, brand equity, recruitment and the likes. In other ...

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