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In this article we examine another side of a coin how different Corporate Governance Systems might influence business strategy in the present corporate world.

For the empirical study of corporate governance vis-a-vis business strategy, we have considered the following hypothesis, which are given below: -

• Strategic management and corporate governance are the two sides of a coin.

• Corporate Governance depends upon legal and administrative framework created by the local government.

Players in Corporate Governance

The board of directors is the ultimate governing body of an organization and as such, it must approve all company strategies, including global ones. The top management team is charged with day to-day responsibility for strategy and operations.

Shareholders exercise their voice through their shareholders rights, such as cumulative voting or proxy voting, but they can also exit the company by selling their shares if they do not agree with globalization strategies or other decisions.

Finally governments set and enforce the overall rules of national corporate governance; they design specific norms about international business, such as trade policies; and they can selectively intervene in individual globalization decisions, such as moving operations abroad, or subsidizing a given company because of its national strategic relevance.

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* Contributed by: -
Dr. R. P. Verma,
Ex. H.O.D. & Dean, Commerce and Business Management Dept.,
Arabinda Bhandari,
Strategic Management Researcher,
Ranchi University, Ranchi.