Organizational Commitment and Corporate Governance – Case Studies | Original Article

ABSTRACT:

When employees mix personal and business interests, conflicts of Governance will eventually arise. A conflict of workplace commitment exists when an employee’s loyalties or actions are divided between the employer’s interests and those of another person or entity, such as a family member, a supplier, or a customer. Both are actual conflict of corporate governance and the appearance of a conflict of interest should be avoided. Despite best intentions, these conflicts of corporate governance will likely negatively affect both the employee and the employer. The mere appearance of behavior adverse to the employer may impact business performance and workplace morale. This paper discusses corporate governance building workplace commitment involving personal and business relationships and provides practical guidance on how to avoid those relationships. Conflict of workplace commitment can easily manifest themselves when transactions are not at an arm’s length.