Adherence to Corporate Governance as the Competitive Strategy of Most Corporations

In fact any commercial organization can blueprint a very wide constituency of its stakeholders. It’s not a misnomer to call such interests as stakeholders- a connotation which is far superior to that of a lender. In fact, the term stakeholders itself indicates that the organization concerned functions with such stakes in mind. Therefore no organization can afford to function ignoring its stakeholders. In fact, it consciously builds within its policies, objectives and reporting systems accountability to such stakeholders and often takes up structured reporting to communicate the extent to which such interests are protected. On the obverse side of the coin, strategic management is a scientific practice of ensuring that any organization not only functions remaining on course to the achievement of its vision and long term objectives but also that such objectives and visions can be broadened, widened and deepened according to changing environmental realities. While stakeholders are also scattered in its environment generally most organizations view the essence of strategy formulation as coping with competition (Porter, 1979) and they formulate a strategic structure accordingly (Chandler, 1962). This is rather a narrow view of strategy making which only reckons with the competition. In fact, both management strategies and business strategies should coalesce to form one unique strategy that addresses and monitors the interests of all stakeholders as the organization competes and grows.
Any strategic action plan has to be supported on the constructional skeleton of strategies, tactics and structure. Several strategic constructs have been put forward. however very few are exhaustive enough to ensure a complete environmental scan so as to consciously build stakeholders’ concerns.