Corporate Governance Of The Nationwide Building Society And Focus On Three Governance

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Introduction
According to Pearse, social auditing is the process whereby an organization can account for its social performance, and report on and improve that performance. It also assesses the social impact and ethical behavior of an organization with regard to its aims and those of its stakeholders. Social auditing has proven to be an effective approach to measuring social benefits, social impact, and social performance.
The concept of Governance is simple the system designed to control and distribute power within an organization. According to Hoel (2011), good corporate governance involves having a good leadership structure and the complex system of incentives, checks and balances that makes sure that the organization creates long-term
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As the largest British building society, Nationwide did not convert to a bank in the wave of demutualization that occurred from the late 1980s to the late 1990s.
In the early stages of the financial crisis, executive pay practices underwent extreme scrutiny at Nationwide as in the rest of the financial sector. The Building Society Members’ Association began to campaign against acceptance of remuneration reports at AGMs in 2009, with the CEO’s compensation rising 45% to £2.25 million by 2012, the board’s levels of pay attracted criticism from major newspapers such as The Guardian.
Board Succession – Importance
Succession planning is an ongoing part of organizational development and sustainability in for profit and non-profit organizations. Effective succession planning requires a high calibre of adequate partnership between the current leader of the organization and the board of directors. The governance of Nationwide Building Society is the fundamental purpose of the Board. It is the Board, acting on behalf of the members/users, which direct and control the organization, with the management and staff then implementing policy. Although board succession is important there are some challenges such as:
• The board may not have defined the competencies and characteristics it believes are required for the continuity of leadership for the organization or the board.
• The board may not know whether the leader should come from within the organization or come from the
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