Corporate Governance-The Foundation for Corporate Citizenship and Sustainable Businesses

DASMAN, Kuwait - April 1, 2013 - PRLog -- Introduction
In today’s globalized and interconnected world, investors, creditors and other stakeholders have come to recognize that environmental, social, and governance responsibilities of a company are integral to its performance and long-term sustainability. Now a day’s these concerns help determine profits. For companies to operate successfully and sustain growth, boards must incorporate these new dimensions into their core decision making processes.

What is corporate citizenship?
Corporate citizenship - is a commitment to ethical behavior in business strategy, operations and culture - has been on the periphery of corporate governance and board leadership, linked mainly to corporate reputation. New companies Law for Kuwait (Decree Law No 25 for 2012), published on 29 November 2012, has heightened the need for corporate boards of directors to provide well-informed strategic direction and engaged oversight that stretches beyond short-term financial performance.
Performance Inc Kuwait Consulting serves its valuable customers with the best guidance to implement a governance system that is concerned with holding the balance between economic and social goals and between individual and communal goals. A new vision of business is emerging - one where a set of core values, encompassing human rights, environmental protection and anti-corruption measures, guide the board’s oversight, relationship with management, and accountability to shareowners. The impetus for this new understanding of board responsibilities can be found in a growing number of global and industry specific initiatives.

Board responsibilities
Today’s corporate citizenship — defined by a clear call to environmental, social and governance responsibility — links directly to three fundamental functions of boards and their directors’ duties to the companies and shareowners they serve:

•   Protecting stakeholder rights and interests
•    Managing risk
•    Creating long-term business value

Protecting Stakeholder Rights and Interests:  It should make sure, to recognize and safeguard stakeholders’ rights including legitimate interests and information needs. Boards have to be truly accountable to shareowners and to take ultimate responsibility for their firm’s adherence to a high standard of corporate behavior and ethics.

Effective corporate governance requires due diligence in rallying the support and commitment of the broad network of business stakeholders, including shareowners, employees, customers and communities. If stakeholders are adversely affected by a company’s actions, shareowner value will suffer. With the growth in pension and insurance funds and other institutional investors, shareowners are increasingly also company stakeholders, such as employees or customers. Therefore, these groups’ needs are increasingly interconnected.

High standards of integrity, transparency and disclosure can be influential in restoring public and investor trust in the private sector. They are also a starting point for ongoing, constructive dialogue with stakeholders, such as communities, who are affected by and can, in turn, help determine a business’s performance.

Managing risk: New understandings of business risk show that boards have a legal and fiduciary responsibility to manage environmental, social and governance risks. By addressing and managing these risks effectively, boards can position their businesses to perform well financially and secure a long-term license to operate. Proactively identifying possible human rights concerns allows a business to more effectively address potential risks.

Creating business value: Core to the role of any board is guiding corporate strategy and creating wealth for shareholders. Many new business opportunities are emerging to address corporate citizenship priorities. Forward-thinking businesses are best placed to benefit. Immediate benefits cited by leading companies include improved reputation, higher employee retention rates, greater productivity, and cost benefits through operational improvements and innovation in products and services.

Conclusion
The most effective corporate citizenship and sustainability strategies are led from the top, incorporate a wide range of stakeholder views and are aligned with the company’s business priorities. This ensures a more efficient and strategic allocation of resources to these initiatives, which may generate new business opportunities like- Improved productivity and reduced reputational risks; Human rights strategies, such as preventing discrimination in the workplace and promoting gender and ethnic equality in business processes, have been shown to secure diversity and increase innovation in products and services; Good management of environmental, social and governance performance has been shown to strengthen reputation and brand value, important business assets.

About Performance Inc Kuwait Consulting W.L.L
Performance Inc. Kuwait caters our clientele in finding innovative and creative ways to operate and achieve strategic solutions. This enables organizations to execute their business strategy flawlessly, enabling our clients to achieve significant breakthroughs in professional and personal performance. We are distinguished from others by our capabilities in solving our clients' most complex business issues, delivering sustainable solutions to ensure business success for our clients, turning Potential into Performance.
We achieve success through offering the following excellent services, including organizational consulting, marketing consulting, HR consulting, economic consulting, project management, training, organizational reengineering, restructuring, financial restructuring, management consulting, performance management, communication consulting, customer relationship management (CRM), productivity and quality, marketing objectives, strategic marketing plans, market research, advertising, benefits planning, appraisal systems, feasibility studies, financial analysis, return on investment (ROI) analysis, competitive analysis, market analysis, , communications management, integration management, quality management, risk management, time management, human resource management, custom training and training needs analysis etc...
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