BSCI/BSST371

Enterprise

SU E6 Governance: Strategy, trust

and corporate governance
 learning outcomes
On completion of this study unit you should be able to:
• Reflect on and discuss the relevance of governance within
organisations.
• Discuss and evaluate selected fundamental principles in respect of
organisational governance.
• Integrate aspects of strategy, risk and governance and apply these
within a problem statement/ case study.
 this session
Strategy, trust and corporate governance
• Discuss and analyse the pervasive elements to trust
• Discuss and analyse the different forms trust in a given case study
• Discuss and analyse the different components to trust in a given case
study
• Distinguish between, discuss and critically reflect on individual ethics,
organisational ethics and corporate morality
• Distinguish between on trust and confidence
• Critically reflect on, discuss and analyse the role of intermediaries as
actants to confidence in organisations
 strategy and corporate ethics

The potential impact of strategic decisions taken by organisations calls for

decision makers within organisations to be sensitive to the trust placed by
the stakeholders in both the decision makers as well as the decisions taken.

An appreciation of this trust will influence the accepted norms of behaviour

(or organisational ethics) and actions of organisations.

Understanding Business and Ethics in the South African

context. Rathbone(ed.) 2020. Chapter 11
 trust

Trust is the willingness to be vulnerable to the actions of another based on

the expectation that the other will perform, irrespective of the ability to
monitor or control the other party (Mayer. An Integrative Model of
Organizational Trust. 1995).

Pervasive elements of trust (Rathbone 11.3)

 Risk and uncertainty
 Dependence and vulnerability
 Relations of trust
 forms of trust

Rathbone 11.3.1.4

Source: Botsman, R. 2016 TED Summit. We’ve stopped trusting institutions

and started trusting strangers. As referenced by Ratbone (2020)
 components of trust

Rathbone 11.3.2

Source: Frei, R 2018. How to build (and rebuild) trust. TED2018. As

referenced by Ratbone (2020)
 corporate morality

Rathbone 11.4
an organisation’s actions is as a result of the actions of people, either
individually or collectively

organisations are accountable to stakeholders - some recognised set of

values needs to exist to hold the organisation accountable against

personal ethics - an individual’s inherent value system influenced by

various factors including upbringing, culture and life experience

professional ethics – a collection of, often codified, values and behavioural

standards set by a professional body for its members to follow
organisational ethics - the generally accepted or recognised behaviour or
standards within an organisation, whether explicitly stated or not
 trust vs confidence

Rathbone 11.5
Confidence is a rational decision, based on institutional or procedural
design to prevent, encourage or coerce certain behaviour in future
(Rathbone.2020)

Trust intermediaries
 corporate governance
 boards of governance
 professional independent service providers
 investors and business partners
 media and other commentators
 regulatory and certifying intuitions
 Lecture example

CoffeeBeanz –Brief 8

Vita Healthcare – 2019 Class test 3 (Q4)

FIN