The Leader's role in effective governance of organisations Essay

The Leader's role in effective governance of organisations - Essay Example Among humans leaders appear in a variety of roles and include politics, business, religion, and other social factors. In such a scenario, absence of effective leadership will eventually lead to the destruction or at least decay in a group or society. Due to their superior intelligence, many styles and forms of leadership have evolved in the world of humans. This has also resulted in leadership being the subject of study by various scholars and theorists over a period of time. This paper is a study of leadership and corporate responsibility in business organizations and will look at a broad range of features, factors, and issues with regard to its influence in an organizational setting. Corporate governance is of great importance and focus in the world of business today. Undoubtedly, it has become one of the hot topics for writers and academicians. However, there is no consensus as to what constitutes CG. An academic paper points out, in this context that â€Å"Most academics, business professionals, and lay observers would agree that CG is defined as the general set of customs, regulations, habits, and laws that determine to what end a firm should be run. Much more fraught, however, is the question: â€Å"what defines good corporate governance†Ã‚  (Corporate Governance, 2006)?  Corporations unlike its smaller counterparts like sole proprietorships, partnerships, and small and medium enterprises (SMEs) are much larger and hence more complex to govern. Even though no owner or partner can avoid the concept of good governance, the consequences of a smaller firm being unsuccessful due to poor practices is much lower when compared to larger corporations. One o f the main reasons is that the number of stakeholders who are affected is comparatively huge in the case of corporations. In this case, the stakeholders are comprised of the employees, the shareholders, the local governing bodies, the creditors, other contractual partners, any