The purpose of this review is to give a detailed analysis of the book A Primer on Corporate Governance by Cornelis A. de Kluyver. The essay will examine the key points presented by the author, the book’s weaknesses and strengths, and specific lessons that can be used to improve corporate governance systems. This masterpiece that offers new insights that can make it easier for business managers to support their firms’ corporate governance practices. The book is intended to support the needs of managers whenever redefining the concept of corporate governance (De Kluyver 11). I strongly believe that the book offers meaningful ideas and arguments that can be used to redefine corporate governance.
Background Information
Within the past two decades, business theorists have been addressing corporate governance from the wrong perspective. For instance, many books focusing on corporate governance address the issue of legal rights. This is the case because many “experts treat legal rights as a crucial aspect of corporate governance” (Monks and Minow 23). Many scholars have always focused on the obligations of shareholders and stakeholders in a firm. However, this book by Cornelis A. de Kluyver has approached the topic from a different perspective. The author discusses the subject from a managerial perspective. By so doing, the author encourages every organizational player to be part of his or her company’s corporate governance strategy (De Kluyver 29). It is notable that every stakeholder in a business has a role towards improving business performance.
Summary
The first argument presented in the book is the purpose of an organization. According to the book, corporations are places whereby employees and stakeholders spend most of their skills in an attempt to have better lives. That being the case, business leaders should address the issue of corporate governance in a positive manner. Managers should deal with the major issues affecting their firms such as ineffective governance. This strategy can avert any form of economic meltdown (De Kluyver 32). The author defines corporate governance as a unique system aimed at distributing the roles and rights of different players in an organization (De Kluyver 32). With this knowledge in place, many companies will find it easier to make the most desirable business decisions.
The book explains why specific malpractices should be avoided whenever focusing on the concept of corporate governance. For instance, senior managers should not be the only individuals to discuss various organizational matters. Business corporations should ensure their boards are characterized by individuals from all levels of leadership (De Kluyver 46). This strategy will make it easier for such boards to make appropriate decisions. The other important issue is that of globalization. Every globalized corporation should be aware of different issues such as political risks, economic changes, and cultural diversity.
Evaluation
From a personal perspective, I strongly believe that the author had done a great job towards presenting the intended content to the reader. The central lesson of the book is that corporate governance should be supported by all stakeholders in an organization (De Kluyver 83). The author proposes a new approach to corporate governance whereby responsibilities and rights in a company should be distributed to more participants. The strategy will ensure the organization makes appropriate business decisions.
The book has a number of strengths. For instance, the author has presented the topic from a critical perspective. The information can be used to revolutionize the manner in which organizations make various decisions. The content is supported by quality research findings and discussions (De Kluyver 63). The author defines the key terms and concepts in the book. The information presented in the book flows systematically thus making it easier for the reader to get the intended message.
The other observation is that the author has offered a detailed approach towards effective business performance. For instance, the concept of globalization is useful for companies that want to operate in different parts of the world (De Kluyver 91). The only weakness is that the book fails to present the unique roles of different stakeholders in a corporation. For example, the role of customers and stakeholders towards effective corporate governance is ignored (Mallin 68). Approaches to corporate social responsibility (CSR) are ignored despite their significance in every business practice.
Personally, I have observed that many companies do not embrace this new approach towards supporting their corporate governance systems. This fact explains why it will be appropriate for my organization to embrace this new approach (Tricker and Tricker 38). This strategy will make it easier for the company to attract more stakeholders and eventually become successful.
Conclusion
This book explains why governance should be treated as a critical investment for every corporation. This approach will create the best environment for more employees and stakeholders. Firms embracing the strategy will attract more customers and eventually become profitable. Future studies should analyze the role of CSR towards supporting corporate governance (Casson 42). This is necessary because companies should be responsible and ethical (Philippon 27). Every stakeholder must be part of the corporate governance strategy. By so doing, more firms will find it easier to achieve their business goals.
Works Cited
Casson, Julia. “A Review of the Ethical Aspects of Corporate Governance Regulation and Guidance in the EU.” Occasional Paper 8.1 (2014): 1-44. Print.
De Kluyver, Cornelis. A Primer on Corporate Governance, New York, NY: Business Experts Press, 2013. Print.
Mallin, Chris. Corporate Governance, New York: Oxford Press, 2014. Print.
Monks, Robert, and Nell Minow. Corporate Governance, New York: Wiley, 2011. Print.
Philippon, Thomas. “Corporate Governance Over the Business Cycle.” CEPR 1.1 (2005): 1-34. Print.
Tricker, Bob, and Robert Tricker. Corporate Governance: Principles, Policies, and Practices, New York: Oxford Press, 2015. Print.