The Main Threats That Business Leaders Within The 21st Century

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Corporate governance can be defined as a set of laws, policies and processes impacting on the way organisations are controlled (Saheed, 2013). Therefore, corporate governance plays an integral role in establishing organisational order, by creating structures of coherent communication and distributing responsibility amongst board directors, creditors and stakeholders (Klazema, 2014). Similarly, an organisations stakeholders play an important role in influencing managerial behaviour, due to being defined as people with an interest in organisational performance and are impacted by the actions of the organisation (Daft and Benson, 2016).
This report seeks to explore the main threats that business leaders in the 21st century face …show more content…

Despite attempts to overcome the issue, government conflict persists over differences in the way business is conducted, particularly in nations including the U.S. and China, where differences remain in ideas as to how an economy should be best organised; thus emphasising the difficulties faced and the need for greater government action to resolve the issue (Chesley et al, 2016).
Additionally, global growth in capitalist systems has placed greater emphasis on governments playing the role of regulators in the globalisation process, through means of overseeing law and maintaining political control within markets (Almadani, 2014). Stemming on from this, “guarded globalisation” is a phenomenon resulting from globalisation whereby governments have undertaken an increasingly cautious approach towards foreign investment (Bremmer, 2014). The role of the Chinese government in the case of Pfizer is an example to fall under this, due to the exertion of laws that were put in place, restricting access to the market which was occupied by domestic competitors possessing government support (Bremmer, 2014). As a result, governments appear to be playing a more central role in protecting national interests when participating in global business.
Ethics and CSR
Survey findings saw that the greatest ethical challenges for businesses to have involvement in are regarding environmental protection (Council on Business and

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