7 Principles of Corporate Governance Explained

The behavior of senior managers has central social, socio-political and economic importance, as the financial crisis of 2008 revealed. The way in which they relate to their function, their contract, and their company is critical. It is openly monitored and judged, and inextricably linked with Corporate Governance. Not surprisingly, their influence has been repeatedly discussed in the context of top management salaries. The role of companies and management has also been dragged into the epicenter of world events.

Organizations need to establish the conditions most likely to nourish good Personal and Corporate Governance and create shared responsibility together with employees.

The 7 principles of Personal Governance provide important keys to help managers shape their role. It all starts with ourselves. By establishing a meaningful Personal Mission and set of values. By engaging in healthy self-reflection and continuous self development.

What is Personal Governance?

Is Personal Governance new? Well, given its special characteristics and its close relationship with top management and Corporate Governance, we can cautiously say yes. Still, Personal Governance has deep roots. It has a lot in common with Plato’s ‘self-care.’ For Plato, self-care was a pre-condition for moderation in exercising power over others.

Let's delve deeper into the concept of personal governance and its impact on corporate governance. Personal governance, while seemingly a modern concept, draws inspiration from ancient philosophies. Plato’s emphasis on ‘self-care’ highlights the idea that individuals must first govern themselves effectively before they can responsibly wield power over others. This is particularly relevant in the context of corporate leadership.

The interplay between personal and corporate governance underscores the significance of ethical leadership and responsible management practices within organizations.