Abstract
Enterprise management refers to strategies that are employed by firm managers to solve problems in their firms. It involves supervising, controlling and handling of workers. Good governance is key to every firm. Business ethics refers to how workers are expected to conduct themselves in an organisation. It would be important to note that for a company to attract investors, there must be good leadership. The use of IT in organisations has improved their services by making governance better.
Introduction
Governance refers to a system of laws and methods by which corporations are managed. Moreover, it looks at the external and internal composition of a corporation with the aim of monitoring the way directors and managers work to curb any agency risks, which would arise from mismanagement by company managers (Crane & Matten, 2010). Business ethics entails the use of a moral code to strategies and management operations in a business. This paper concentrates on discussing main components related to enterprise management, market analysis, system providers, system evaluation, and comparison statistics.
A brief history of enterprise management
Enterprise management refers to strategies that are employed by firm managers to solve problems in their firms. It involves supervising, controlling and handling of an organisation’s workers (Crane & Matten, 2010). This has necessitated management teams of various companies to introduce the codes of ethics to be followed.
Main components of governance and business ethics in IT
It would be important to note that good governance and business ethics are key elements for the success of any firm. Good governance is characterised by the following. First, there is accountability, which means that workers in a business should be answerable for their actions (Fassin, Van Rossem & Buelens, 2011). Employers are also expected to account for their deeds. Public sector management is the second element.
Managers in the public sector are expected to demonstrate good public relations. By doing so, the workforce would participate in the administration of organisations without organising strikes and boycotts. The third element is transparency and information. Transparency strengthens accountability (Fassin et al., 2011). Administrators from various establishments should show preciseness in whatever they do, without hiding their employees.
According to Crane and Matten (2010), directors and managers should avail information relating to firms to their workers to make them informed about their rights and responsibilities. A legal framework for development is the fourth element. Laws governing an organisation should be founded on a legal ground because they outline the rights and responsibilities of both a worker and an employee. The fifth element is the forward vision. This would be interpreted to mean that it must have an objective to achieve within a specified duration.
Market analysis
It would be imperative to point out that good governance and ethics are crucial for development. Therefore, it would be important to analyse the significance of good governance and ethics in enterprises. Statistics indicate that where leadership in an organisation has taken into account all the elements, there is an increase in production. Eighty per cent of workers prefer such a work environment, with only 15% working without considering the working environment (Fassin et al., 2011).
The other 5% does not work. Results from various researches and assessments indicate that in firms where managers apply democratic styles of leadership style, more employees would want to work with them than in where they use dictatorship (Fassin et al., 2011). Furthermore, they indicate that outputs, where governance and ethics are not prioritised, are lower than where control of power and ethics are prioritised.
Figure 1. A table showing the effects of good governance and ethics in enterprise management.
System providers
Good governance and ethics in an organisation would be provided by various agencies in a country with an aim of ensuring quality goods and services are offered to the people. In organisations, it is offered by managing directors who ensure that rules are followed to the letter. In addition, it is provided by the public and private organisation, and governments. Moreover, the NGOs and churches play important roles in promoting good governance and ethics in companies (Fassin et al., 2011). There is evidence that political parties play a significant role in promoting good leadership.
Pros and cons of good governance and business ethics
This paper would be of little use if it underscores the pros of a well exercised authority in management of any enterprise. It improves the quality and quantity of production because workers cooperate with their employer (DesJardins et al., 2009). Apart from being an economic investment, a company has a social aspect where people interact. This improves the level of creativity and innovation, increasing output.
Desjardins and colleagues (2009) argue that through the correct methods of ruling, conflicts are resolved in the best way possible. In this type of leadership, leaders have leadership qualities. Despites the many pros discussed above, enterprises with good leadership have cons. Where workers are given a lot of freedom, they tend to relax. This in turn leads to decrease in organisations’ performance, which consequently, lead to lower growth rate in firms.
Strengths and weaknesses of good governance and business ethics
Good governance helps a firm to achieve its objectives (Crane & Matten, 2010). Employers and employees co-exist, and this increases performance outcomes. In addition, decisions are made after consultation with every stakeholder, making them to be informed. There exists some drawbacks in some organisations that use governance without the required skills. Where instructions are not clear among stakeholders in an establishment, there could be delays in performance of tasks. Nevertheless, it would lead to delays in decision making because consultations would be done before any decision is implemented.
Comparison and evaluation: The UAE versus international level
The UAE has a system of laws that govern the management of enterprises. There are codes of conduct that regulate businesses with the aim of improving performance outcomes. It has better governance compared with the international level. For example, Dubai has forbidden all injustices done to workers (Crane & Matten, 2010). Citizens of the UAE are serious about attracting investors, from both national and international levels. UAE’s leadership is better compared to international level. Qualifications to be a leader in any organisation are relatively high. This has attracted many investors to UAE, and it is also suggested that it would result in positive long-term impacts (Crane & Matten, 2010).
Recommendations
Enterprise managers should engage all the stakeholders in running of an establishment. Consultations should be done before any decision is implemented because through it, new ideas may be generated. Rules and regulations should be issued to all workers because this would make it them understand, making it simple to follow them.
Conclusions
In conclusion, good governance and business ethics play roles in the success of any enterprise. Every firm should ensure that leadership style that would be used maximises profit as there are fewer errors, particularly when IT is used.
Summary
What is the value IT in good governance?
Information technology refers to the use of computers and telecommunication to store, recover, transmit and manipulate data in an enterprise. It has helped in ensuring that there is good governance in various ways. IT has helped in communication among stakeholders in enterprises. Administrators have various ways of passing messages, use of emails being the best of all. It is also used to keep data that are up to date, which would be used by a company for future reference.
Its use has made the decision making process faster in many companies. Methods of communicating are fast because of use of mobile phones. Firms would save time and energy because movement of workers would reduce. Electronic gadgets would be employed to enlighten people on their rights and responsibilities. It would be imperative to indicate that employment of IT in governance would make the process of decision making fast and easy. Consultation can be online without holding a stakeholders’ meeting. There would be good reputation of a company because it would use IT to advertise for job vacancies, tenders as well as promotions of its employees.
Data would be stored in computers and other electronic gadgets to ensure privacy. Payment of company employees would be done through IT. This would save time that would be used to go to banks. Moreover, many transactions would be made through the application of IT. For example, goods would be bought online and would be delivered to the company. An organisation would be updated about new commodities in market through the internet. Finally, it would be used to educate workers about the new regulations that would emerge. Thus, establishments are advised to use IT in their enterprises to improve their governance.
References
Crane, A., & Matten, D. (2010). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford, United kingdom: Oxford University Press.
DesJardins, J. R., Hadida, S., Dequenne, E., Bellucci, M., Cassel, V., Grandpierre, R., … & Dacascos, M. (2009). An introduction to business ethics. McGraw-Hill Higher Education. New York: NY
Fassin, Y., Van Rossem, A., & Buelens, M. (2011). Small-business owner-managers’ perceptions of business ethics and CSR-related concepts. Journal of Business Ethics, 98(3), 425-453.