New Challenges in Corporate Governance: Linking M&A and Social Responsibility

Abstract

Answers to the questions of successful business models can be found in various strategies, amongst which mergers and acquisitions are considered as good growth strategies if implemented successfully. Corporate governance is seen as control mechanism dependent on the legal, regulatory, institutional and ethical environment of the community. Thus, authors emphasize that without considering the social aspects of business, leaders cannot lead the business in the right direction, but vice versa. Mergers and acquisitions (M&A’s), as one option for the company’s development could bring both positive, but as well as negative consequences for the target and the acquirer company. Corporate governance mechanisms, social responsibility and the importance of their adequate combination in the processes of merging and acquiring new company pervades in this paper. The paper brings insights on corporate social responsibility and the way its effective implementation supported by governance mechanisms can create a “snowball effect†of positive social changes. A special focus was put on M&A and its incremental value for the company’s development and growth. Important figures in the field of M&A are provided. A deep theoretical background is provided in the field arisen out of detailed literature review and practical experiences.