InEurope, the crisis has also called for change and a greater accountability in corporate governance. In 2011, the European Commission issued a Green Paper on corporate governance, to which the European Parliament is proposing amendments through a Resolution. We Parliamentarians are stressing that the business sector should take into account social, ethical, environmental and societal concerns. Companies need to create closer ties to the social environment in which they operate and grow.
Transparent and accountable corporate governance along with the issue of trust are important foundations for the management of the social and economic crisis. Citizens who are directly experiencing austerity measures expect accountability for the bad practices in the past and their elimination in the future.
Bankruptcies and bad practices need to educate us so that unethical acquisitions and massive job losses will be no longer. With this, there is also the key issue of the accountability of those who went beyond boundaries and banks lending money regardless of serious risk. Today, there is no credit for small businesses, and banks are behaving according to the principle “once bitten, twice shy.”
The resolution stresses the need to introduce stringent controls and new rules to prevent harmful practices related to salaries and bonuses for company leaders. Their salaries should be dependent upon the long-term performance of the company. The latter must be measured among other things vis a vis the health and safety, and satisfaction of the employees. Through the transparent management of companies, all shareholders, regardless of the number of their shares, must have equal access to information.
The resolution emphasizes that companies need to more effectively develop and promote the talents and skills of their employees. Companies need to ensure for them equal opportunities and contribute to a proper balance of professional and private lives. It is important to establish a social environment in which women will be in management positions in businesses and at the same time mothers and wives.
