Sustainable Enterprise Performance

1The Governance Process

1.1. Enterprise governance

Many principles of good governance and codes of good behavior have been suggested over nearly 15 years; the most recent ones place more emphasis on the function of Boards of Directors and the notion of internal audit. Today, we observe a certain maturity among enterprises with regard to carrying out these good practices: reporting the chapter relative to corporate governance in the annual report establishing responsible internal control or even a governance board in certain businesses, etc.

This aspect of corporate governance is oversimplified however, as it does not address matters of value creation, which is central for assuring a business’ continuity as well as its performance.

The model suggested by the Chartered Institute of Management Accountants (CIMA) and the International Federation of Accountants (IFAC) has the merit of introducing the “value creation” section, complementing the “risk management” section (see Figure 1.1).

The analysis of existing models in the light of affairs revealed to the public highlights the fact that the human aspect has so far been neglected. It appears that leaders have lost interest in their human resources for a long time (“the only wealth is man”, said J. Bodin on the subject). Therefore, it seems necessary today to rebuild momentum in corporate governance by taking people (decision-makers) into account more, beyond the implemented systems and organizations.

Figure 1.1. Enterprise governance ...