BSS064-6 Leading and Managing Organisational Resources Sample
Task 1: Email
To
The Chief Executive Officer (CEO)
Meta
Subject line: Corporate governance and sustainability
Date: 07.10.2022
Respected Sir,
Corporate Governance in an organisation is stated to be a system that is developed in providing a structured direction and control over the operational functions of risk management and compensation structure to the company. In an organisation, the Board of Directors are responsible for maintenance of the corporate governance and the stakeholders are a crucial part of corporate governance the role of appointing auditors and directors is to help in the systematic structuring of governance. In an organisation, corporate governance practices and Corporate Social Responsibility (CSR) are interrelated which provides the leadership skills in the organisation to maintain ethics in the organizational functioning (Gopinath, 2021). In Meta, the independent Board of Chairs is considered to be a crucial step forward for providing oversight over the management and addressing governance failures which may help in protecting the stakeholder’s interest. Moreover, in Meta, the main concerns are raised in terms of the environmental, governance and social concerns about the business to carry a significant along with material risks (Investorsforhumanrights. 2022). In this email, a detailed analysis of the integration of leadership, operation management and effective leadership styles along with theories and models have been analysed in Meta Company about the role of Corporate Governance.
Evaluation and critical analysis
In Meta, the adaptation of the Corporate Governance Guidelines has been formulated based on the reflection of the Board of Directors who have a strong commitment to encourage policies and decision-making at the Board management level. In the company, the Corporate Governance guidelines are intended to be designed to help in the exercising of the governance responsibilities which proceed to serve as a structured framework to create long-term value for Meta. Furthermore, the Corporate Governance in the company is also designed to provide a working structure through following principled actions, monitoring guidelines along with effective decision-making to meet both performance desired and compliance in the competitive market (Koutoupis and Pappa, 2018). However, Metaverse has been facing criticism regarding the maintenance of security issues and ESG issues in corporate governance in 2021, which has highlighted the stakeholder’s concerns over the company’s operations and ESG principles (Brooke, 2022).
It is stated that the Meta company leadership style has unique traits and skills which may help the company in preparing for mobilizing its position in the competitive market. The emphasis that is put on innovation and creativity brought in by the leaders of an organisation has a great impact on the formulation of the CSR policies which provides a structure to maintain the sustainable development of the organisation. Moreover, the imposition of transformational leadership in the company may help in the promotion of stimulating innovative behaviour among leaders to give importance to creating engagement and bringing productivity (Verburg, 2019).
Stakeholder needs enhancement with an increasing focus on corporate governance
CSR strategy of Meta:
Meta, which had been earlier known as Facebook, may be described to have a CSR policy that is divided to care of the sovereignty of operation, care about the finances and make a suitable stakeholder engagement. It has been thus found that the Corporate Social Responsibility (CSR) of a company is the first imperative thing in terms of fulfilling the needs of social demand, and CSR strategy maintains a better equilibrium for political as well as social balance (Latapí et al., 2019). There are four different principles that Meta uses, which consist of Vision and Mission, Risk Assessment principle, Strategy and Target principle to stretch the CSR appropriately (Meta | Social Metaverse Company. 2022). There are research papers that suggest that the CSR system has the benefit of making a better stakeholder need enhancement, by pushing the engagement to a higher limit hence (Venturelli et al., 2018). The critical appreciation of the CSR strategy of Meta may be thus verified concerning the company’s testimonial, where the CSR policy of Meta combines several steps even after the initial and major step competition.
The structure of the Board of Directors of meta consists of several brilliant minds starting from the founder and Chief Executive Officer (CEO) of Meta, Mark Zuckerberg, along with Nick Clegg being the President and David Wehner, the Chief Financial Officer of the company. Meta has acquired several other companies, such as WhatsApp, Facebook Messenger, and Instagram which have respective presiding officers. For example, the responsible people may be named such as Will Cathcart being in WhatsApp authority, and Lorenda Crisan being the presiding officer of Facebook Messenger (Meta | Social Metaverse Company. 2022). CSR of Meta is used to mitigate the risk that earlier Facebook had suffered, as the comedy had been in the scandal of leaking the confidential information of the climates of Facebook, and this has stripped the accounts of over 87 million users worldwide. Putting the company at great risk (Bbc.com. 2022). There had been opposition to the use of Facebook after this scandal, for which the London jurisdiction has been involved to handle such a sensitive case, where the role of CSR needs to be emphasised greatly (Bbc.com. 2022). This has been further signified by the CSR attitude that Meta holds for the people, where the company does have a better transparency policy that may assure people of the scandals to be prevented.
The CSR Pyramid may be taken as the reference in the form of a model application to study the impact of the accountability of Meta for the users, as 30% of the effectiveness is captured by academic study for the CSR model of Caroll (Kusyk, 2021). There are four different accountabilities of the CSR Pyramid of Carroll Model, which has been the structure of the discussion in the later phases., ethical responsibility, financial accountability, legal aspect and philanthropic side.
Financial governance:
The stakeholder needs enhancement has been one of the prominent purposes of the CSR attitude of meta to leverage the rise in the creation of a better investor relationship to be precise. The CSR here is valued as Meta being responsible towards the stakeholders of the company, and the financial performance of the company in the current year has been fluctuating, with $28,822 million, although the revenue turnover of the company has reduced by $3707 million from 2021 to 2022 (Meta | Social Metaverse Company. 2022). In this same aspect, Meta uses a clever strategy of forever promising yet being one of the companies that the stakeholders may find attractive and have an overall hope that the company will provide positive returns. Meta files the Form 10-K and the Quarterly Form sheet, or more briefly the Form 10-Q that has a transparent statement for the share values utilised by the company of Meta (Meta | Social Metaverse Company. 2022).
Additionally, if Friedman’s Theoretical Model is applied for understanding the stance of Meta, the theory states that here stakeholder profit margin may be increased if the quality and the enhancement of the service are more grounded. It has been further found that the company of Facebook has made the nest of different investors while having a more well performed, and manually organised system of financial governance with a transparent agreement (Carlson, 2018). This theory is in fact, more related to the CSR that a company follows in that the stakeholder hope is better attended with individual liberty (Jahn and Brühl, 2018).
Ethics:
The ethical maintenance of Meta for creating a standard of performance and building the entire company on suitable goodwill has been a CSR objective of the company to be precise. Meta follows the five principles to ensure that the CSR structure of the company is well aligned for stakeholder engagement and the creation of a suitable stakeholder needs enhancement by following such principles. The ethics standard that Meta follows relates to employee participation and the creation of a family in the workplace, as the CSR tool is more effective for changing the internal management of an institution (Cho et al., 2017).
Sustainability:
The need for maintaining a better CSR in the company is essential, crucial and quite important for any company to let the finances be increased and regenerated. CSR of Meta has been still developing the work ethics, and the stakeholder needs enhancement has been thus primarily focussed by the CSR objectives achieving a certain degree of fluidity. By the synthesis of theories, it hence may be found that the sustainability of Meta has been quite a much stable provided that the company takes in a disciplined performance and considers the concern for stakeholder needs enhancement to be valued. Sustainability is achieved and hence the stakeholder needs enhancement of the society and the employees are valued equally, as Meta does for appreciation of the operations management, by taking care of the social structure.
Understanding opportunities and challenges in integrated leadership
Effective leadership in an organisation is a vital component which is responsible for delivering effective and efficient organizational functions which help in delivering and meeting the challenges and opportunities for the company in the given market. The role of integrated leadership skills in the company is beneficial in the engagement of co-workers along with solving various complex issues that may arise in the systematic function. Authentic leadership in an organisation is beneficial for improving engagement among the stakeholders and also improving employee satisfaction where the belief is to gather credibility and employee trust and promote the building of a team. Furthermore, the use of the Distributed Leadership style in the organisational and corporate governance framework formulation of Meta may have proven to be useful in terms of providing a collaborative framework which may be utilised by channelling various resources (Naumov et al., 2021). In terms of maintenance of ESG issues that have been faced by Metaverse over the mismanagement practices in the corporate governance and ESG issues. The company may have benefited from the positioning of the Corporate sustainable leadership style, which may have resulted in highlighting the CSR issues along with the development of effective CSR culture in the organisation leading to sustainable future development (Tien et al., 2020).
In light of the ever-changing business environment, the need for a regenerative leadership style may have proven to be useful in the business environment and the operational functions in the competitive environment. The use of a regeneration leadership style may help the company in thinking differently, which may help in taking conscious decisions based on the interests of people, the planet and profit proposition along with the creation of interconnectedness in the working space. Implementation of a regeneration leadership style in the organisation also leads to the prevention of burnout among employees through the application of innovative rewards systems and policies to encourage the working force to bring sustainable levels along with putting the maximum level of effort to bring organisational success (McKimm et al., 2022). In Meta Company the use of Servant leadership theory may have provided the company’s start to be followers with a non-hierarchical system, which may have also resulted in interaction among the employees and achievement of authority rather than that of power.
In Meta, the leading theory is prevalent and most prominent is that of the autocratic leadership style, where the management style is controlled by the leader and the major decisions are taken by the organisational leader and little to no input is gathered from other members. Furthermore, the autocratic leadership theory in the organisation is providing the organisational leader with the power to take control over the working team and the working environment which also leads to the designing of Corporate Governance in the company (Gultom, 2022). On the other hand, the recent scandal in Meta with the mismanagement of the ESG issues raised concerns among the stakeholders and may have been efficiently managed with the implementation of democratic leadership style theory in the organisation. It may also be discussed that the impact of the use of a democratic leadership style may have provided the company such as Meta which management experiences along with the long-term perception of risk management capabilities along with insight from the employee structure to make necessary changes in the CSR activities and policies. In addition to that, the use of a democratic leadership style in the organisation may have also benefited the company with a high perception of employee feedback to be used in the formulation of the CSR strategies, which have led to motivating the employee structure resulting in productivity and financial gain (Arslan et al., 2022).
In the management of the scandal in Meta in the mismanagement of the ESG policies and lack of stakeholder benefits, the use of Laissez-faire leadership allows the employee structure to have a hand-off approach to making decisions for the betterment of the organisational function. The use of Laissez-faire leadership theory in the organisation may have provided a better structure to deal with poor financial management systems and strengthen the Social Responsibility policies in the company by getting critical feedback from the stakeholders themselves (Wei and Vasudevan, 2022).
Conclusion and recommendations
Conclusion
The above argument suggested that the effectiveness of Corporate Governance may be managed with a strong leadership style maintained in the Meta company which may have directed the organisation in mitigating the ESG issue scandal. The effective communication traits that are offered by the servant leadership style in an organisation may have been useful in building effective Corporate Governance which is done through gaining feedback from every working staff to meet their needs along with the target audiences. The maintenance of ethics and sustainability in the Corporate Governance structure of Meta has resulted in the formation of effective policies that meet the interest and needs of stakeholders.
Recommendations
Meta Company in terms of mitigating the issue with the Corporate Governance system needs to adapt to the Transformational leadership theory, which may help in encouraging the employee structure and motivating to adapt to the changes to direct organizational success. The company also needs to gain effective feedback from the employee structure in the development of the CSR strategies and policies to highlight the areas that require to be developed to meet the stakeholder interests. Furthermore, the company also requires the implementation of training programs to boost the employee capability in adapting to sustainable practices in the organisation to help with future development.
Thanking you,
Yours faithfully,
…………………………….
References
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