Q1. Can you pls share the difference between good and corporate governance in an organization?

I have observed that the terms corporate vs good governance is often misunderstood.  There is a significant difference these two terms.

Corporate governance is a framework by which organizations are directed and controlled. Boards of directors are accountable  for the governance of their organizations. The shareholders’ role in governance is to appoint the directors and the auditors and to satisfy themselves that an appropriate governance structure is established.

Good governance provides the infrastructure to improve the quality of the decisions made by those who manage business. 

So, which is important : Corporate or Good Governance?

A few classic examples of corporate and good governance failures include : Enron, ICICI Bank-Videocon bribery case, PNB-Nirav Modi Scam, Dewan Housing Finance Limited (DHFL) and YES Bank

To ensure good governance, we should always go back and check the primary objectives of corporate governance. Employing good corporate governance reduces the risk of non-compliance with statutory and regulatory requirements.

Q2. How does an employee contribute towards good governance within an organization?

It is quite surprising to know that many employees feel that they have no role towards corporate governance. 

My interactions with a cross section of employees across different organizations  reveal the following :

• Corporate governance will be taken care by senior people
• It has not related to my performance management system
• There is nothing mentioned about it in my roles and responsibilities
• I have no motivation/bandwidth to read and understand the policy documents
• A transparent feedback mechanism is missing to share my concerns
• If I  report any ethical violations mangers can penalize me

On the contrary every employee

• Influences the organizational  culture
• Fosters innovation and creativity  
• Enhances motivation and productivity 
• Establishes legitimacy and authority of the decision making
• Contributes to economic grow and social stability
• Ensures stakeholders expectations are met

Q3. What are the approaches to include employees in corporate governance?

Many agree the importance of  involving employees in corporate governance. But quiet, often it is not immediately obvious how that is to be accomplished. 

Here are a few strategic initiatives that helped our organizations when involving employees in corporate decision-making:

• Net Promoter Score (NPS) is an excellent mechanism to obtain employee feedback on corporate decisions and take corrective actions as applicable.
• Focus on treating employees in a fair manner. By making this happen it is more likely that employees will be heard on key topics while also facilitating  compliance with employment law.
• Establishing employee councils that can bring up serious people-related matters to the management.
• Provide them scope for financial participation  in the form of equity/profit sharing.

Q4. Could you elaborate on why a strong organizational culture is vital for good governance and the long-term success of a company?

A company’s brand reputation is established on its core values. Different stakeholders will be keen to work with an organization that is able to demonstrate business ethics on a consistent basis. The symptoms of a toxic culture, much like bad habits, are too weak to get noticed till they become too strong to rectify. High performing teams thrive in a culture that is based on trust, respect, transparency, collaboration and recognition. 

An ethical corporate culture improves productivity and creates positive long-term shareholder value. Employees are keen to join and stay in companies that promotes a toxic free work environment. During this process  customers have a strong sense of loyalty. These considerations translate to a direct contribution to the overall strength and profitability of a company. 

Q5. Internal communication plays a crucial role in connecting leadership and employees. Why do you believe effective internal communication is so vital, especially in the context of corporate governance?

I was responsible for  internal communication manager in my earlier organizations. I have seen quite a few board members are reactive and wait to be engaged by management or show up at key discussions. Effective communication supports a proactive approach in organizations. Questions like; “is there any tasks I should be doing, even if I haven’t been asked yet.” are bound to challenge directors .It can consequently lead to a dynamic and effective board.

Ineffective communication  is a common problem in organizations. It leads to lack of trust and can trigger rumors, gossips and misunderstanding across employees. I am convinced that it is crucial to utilize all communication channels like emails, townhall meetings, social media, digital platforms. It can bridge the gap between the leadership and the employees over a period of time.

Purposeful corporate communication  is not limited to purely serve the need to safeguard  the public face of the company. It is also required to facilitate the  smooth operations of the company. Specifically, the delivery of the strategy and objectives of the organization.

Q6. How does the HR function contribute to facilitating employees towards good governance? What specific practices or strategies can HR professionals implement to promote a culture of good governance within an organization?

I believe that (HR) is no exception when it comes to good governance for the success of any organization. An effective HR governance ensures that its employees are managed efficiently and effectively and comply with legal and ethical frameworks.

HR professionals can immensely benefit by adopting these practices:

• Effective onboarding process
• Ensuring transparent and timely communication 
• Providing upskilling/reskilling opportunities
• Supporting career progression 
• Facilitating creativity and innovation
• Actively listening and proactively responding to concerns
• Enriching employee experience 
• Establishing a competency based performance management system

Q7. Employee councils have been suggested as a way to improve good governance. Could you explain how employee councils’ function and the potential impact they can have on the overall governance of a company?

An employee council is a group of employees who come together voluntarily to:

• Plan and implement tasks  designed to engage and motivate employees.

• Establish a positive and productive workplace culture.

• Support on strengthening the employer’s relationship with its employee

The objectives of employee engagement councils are to facilitate networking, exchange ideas, collaboration and propose ways to enhance staff satisfaction and work effectiveness. The committee will: Advocate for recognition, engagement and mentorship with staff to establish a professional environment and work experience.

Q8. Your accomplishments are impressive, and they reflect your ability to drive positive change within organizations. Can you share some specific examples of how you have improved employee well-being and productivity in your previous roles?

Thanks for your appreciation. 

The current trend is about moving from employee engagement to employee experience. 

The management team supported many of my employee engagement initiatives:

• Establishing a gym that can be used by employees after office hours
• Facilitating a visiting doctor to address occupational health issues at office
• Promoting sports/games competition with groups
• Publishing an employee newsletter with project success stories
• Designing a “Coffee with CEO” session for high performing employees

Q9. In your experience, how do you ensure that the solutions you provide to organizations are tailored to their specific requirements and aligned with their key performance metrics?

I believe that it is important for employees to understand the vision/mission/values of an organization. Only then it will be possible for the company to meet its stakeholder’s expectations. One of the effective approaches is to create customized solutions to solve a business requirement. 

For example, in a R&D organization the key challenge was the absence of a culture of innovation and creativity. This was a major issue since product development required out of the box thinking and provide tailor made solutions to customers.  I created an online idea portal. The objective was to encourage employees to record their ideas that can solve business and organizational problems. The suggestions were reviewed by an expert committee and based on merits it was reviewed  in focused group discussion . Once it crossed this stage a prototype was created and distributed to select end users and feedback obtained.  Then over a period of time it became registered as an IP and added enormous value to our customers. During this process the employees were duly recognized and rewarded. 

Q10. Collaboration is essential for successful outcomes. Can you share some insights into your approach to collaborating with organizations and how you build trust, respect, transparency, and commitment throughout the process?

I fully support in facilitating cross-departmental relationships across an organization. It breaks silos and promotes networking and collaboration. 

The first step is about “ Walking the Talk”. Leaders must demonstrate ethics on a daily basis. Employee silently watch their mangers behave. It is never an easy proposition to uphold core values for a variety of reasons. However, it is crucial to establish and sustain my personal credibility at any cost. 

I ensure that my communication was transparent, timely and concrete. It made employees across teams align with the common goals. The next step is about providing a conductive environment where employees feel trusted and respected. It means leaving no scope for any rumors/gossips. Another strategy that helped me was by adopting “ Management by Walking”. I could observe many key reactions by just moving across the workplace. It gave a signal to team members that they can rely on me for any support  This intersection is the sweet spot where employees – and company – thrive.

Q11. Lastly, what advice or key takeaways would you like to leave our audience with regarding the active role of employees in corporate governance and how it can lead to a more successful and sustainable organization?

Building an ethical organizational culture can’t be delegated. Hence every employee as a role towards corporate governance. It is about becoming proactive and stepping out of your comfort zone. You are bound to see many wonderful opportunities that can support corporate branding and business continuity.