There have been an increasing number of regulations pertaining to governance. What is the holistic approach to governance? What is the strategic approach? Which is better and why? Which do the regulations promote? Thoughts?

The holistic approach in corporate governance is how an organization ensures that its activities do not pose a threat to other key features of its composition, and in this case, reputation is the main feature Bolton et al., (2014). The strategic approach focuses on the duties and responsibilities of the company’s management including directors, board members, and the senior officials; their duties should be aligned such that they promote the organization’s image, by taking their responsibilities seriously. Institutions need to realize that financial and legal framework in corporate governance goes hand in hand with ethics and morality; further, companies are nothing like people who are conscious of situations around them and are not limited to decision making. With regards to this concept, the strategic approach is more acceptable because once an individual is employed, they become an agent to the organization and will make decisions in line with its interests.

References

Bolton, R., Gustafsson, A., McColl-Kennedy, J., J. Sirianni, N., & K. Tse, D. (2014). Small details that make big differences: a radical approach to consumption experience as a firm’s differentiating strategy. Journal of Service Management, 25(2), 253-274.