Good Corporate Governance and Sustainability Research Paper

Good Corporate Governance and Sustainability - Research Paper Example Under the good corporate governance applied, Ford performed very well in business plan development and compensation, business plan review, special attention review and automotive strategy meeting, corporate policy letters and directives, management systems. That is the main reason why Ford is only one of the auto companies which kept performing during the 2008 global financial crisis in America. Mallin (23) asserts that the element of diversity in companies is one of the things that benefit from corporate governance. Corporate governance promotes diversity by, firstly, ensuring a board of governance or company leadership that respects diversity. Gender diversity in companies’ leadership is one of the crucial issues commentators of corporate governance have emphasized. In the past five years, seven countries have passed legislation mandating female board representation and eight have set non-mandatory targets. A study of Canadian companies showed that boards with three or more women performed much better in terms of governance than companies with all-male boards. The study also found that the more gender-diverse boards were more likely to focus on clear communication to employees, to prioritize customer satisfaction, and to consider diversity and corporate social responsibility. To illustrate the point above, McKinsey & Company, as the world’s leading consulting firm, is a great example in the real world. Mallin (24) attributes the improvement of a company’s economic and financial performance to the varying skills and abilities of diverse groups of people. He argues that the skills of people from different backgrounds outperform homogenous groups. In order for companies to uphold corporate governance to ensure diversity, they invite applications from the public. This helps companies to pool  a variety of skills and abilities from which they can appointable candidates. In addition, corporate leaders use mentorship to educate persons from lower levels with the skills required to handle senior positions.