Question

How can a publicly traded corporation lower the chances that key managers will pursue their own interests at the expense of the stockholders? At the expense of the employees?

Answer 1

Every successful organization has a management structure which provides it effective and efficient operations in the marketplace. The following steps, actions and strategies can be taken to ensure lower chances of misuse of shareholders trust :

1) Setting a supervision and control mechanism which ensures accountability and responsibility of every manager .

2) HR department should hire those candidates who are ethically mature and honest towards their duties and responsibilities.

3) Organizational policies should be designed in such a way which includes zero tolerance against corruption.

4) Management should take care of their employees in terms of fair and equitable remuneration, competitive pay policies and sound career growth so that they don't involve themselves into corruption related activities.  

5) Management should implement electronic governance and other innovative digital interventions so that business related transactions will be done in a corruption less manner.

6) There should be a team of senior executives who will ensure the level of commitment, and work styles of managers as per organizational policies and code of ethics.