Purpose -The purpose of this paper is to define and explore the concepts and relationships between intellectual capital, knowledge, wisdom and corporate responsibility in the context of the corporate governance of Islamic financial institutions. Design/methodology/approach -This paper presents an adaptation of the Nicholson and Kiel intellectual capital model of the board of directors including the role of the Shari'a Supervisory Board (SSB). It is driven by the following research questions: how does the SSB add value to the corporate governance model of IFIs through their intellectual capital? Is there any value in replicating the IFIs structure in western conventional banks and, if yes, how could it be done without the religious and cultural impacts? Findings -It was only recently that one entered the knowledge economic era and organizations are slowly realizing the need and the benefits not only of managing knowledge better, but also of managing it in a wiser way. The concepts and values carried by Islamic banking and by social responsible investments have a lot in common and they both tend to bring wisdom to the organization's operations and goals. Originality/value -This paper explores how the core concepts of Islamic banking governance could be adapted to conventional banking. It shows the need for organizations to continue their knowledge management journey by integrating organizational wisdom with their decisions and actions. Corporate social responsibility is perceived as being a first step to reach organizational wisdom. This paper touches on various critical issues and it is hoped that it will be a source of inspiration for numerous research questions and debates on these topics.
T he paper encourages a discussion around the concept of Leadership Development and the goal is to simplify this concept and propose a framework using which organizations can foster new age skills in their future leaders. The paper relies on research of published articles by leading online journals to drive this debate.The first section of the study seeks to explore the evolution of leadership and examines the existing leadership theories. The second section drives the discussion from history to current context and we examine the changing talent landscape and the resulting impact on key skills which future leaders need. We identify 8 competencies that every leader should develop to thrive in the future. The study then seeks to propose a simple framework which can be leveraged upon to impart these skills. The framework has leadership support at its core and incorporates four elements on setting defined goals, focusing on organizational context, providing on the job experiences and measurement of impact. We also delve into some leading leadership development practices and draw parallels to our framework.Finally, we conclude that organizations need to take greater responsibility in developing the future talent since great leaders are made.
Is corporate governance really important in today's world? Very emphatically yes, because corporates touch so many aspects of our lives. It is unbelievable how big our organisations have become and how pivotal they are today to the world economy. Economically speaking, some corporate giants are bigger than countries. Take Apple, which has a market capitalisation of over trillion dollars. Just put that in context, India has a two and a half trillion dollars as GDP. Even Walmart, with almost 400 plus billion dollars, is bigger than Belgium. Further, many smaller organisations, in turn, connect to these larger corporations. For instance, many connect to Walmart as their suppliers. With so many jobs and livelihoods at stake, it would be unfortunate if people get short-changed by these organisations, whether large or small. Trust once broken, takes a long time to regain. For example, many found it unthinkable that one of the foremost auto companies in the world could indulge in doctoring emission data to circumvent norms in the US. Since corporates don't exist only for shareholders, but for a much wider cross section of the stakeholders, corporate governance becomes very important for all organisations. Just look at what happened with organisations like Arthur Andersen when some years ago they were seen in collusion with wrong doings in Enron. Do you really believe that HR can play a role in corporate governance? Of course. HR is the custodian of creating the right culture in the organisation. It influences the organisation in multiple ways so that the right kind of culture gets developed over a period of time. Good governance goes hand in hand with a very transparent kind of culture where there is an open conversation with key stakeholders before decisions are made. Further, HR makes people polices and these policies are imperative to ensure that the right culture is created and sustained. HR needs to ensure that the right kind of leadership is nurtured and developed, so that the spirit of transparency and open conversations becomes a way of life in the organisation. Take the example of a crisis-ridden technology company in Hyderabad. It appears improbable that the HR person would not know that there were thousands of people being paid thru 'the payroll' but in reality they did not exist. HR is also responsible for hiring people and should always ask themselves whether they are hiring the right kind of people who have value systems in sync with sound corporate governance. Beyond onboarding, HR also has the responsibility of making recognition and reward policies that enable the right kind of behaviour, and don't condone wrong behaviour.
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