Corporate Governance in Building and Construction Industry

2017-06-06T02:54:49Z (GMT) by Petrovic-Lazarevic, Sonja
The Building and Construction Industry (BCI) has characteristics that distinguish it from other industries. These are the physical nature of the product, the structure of the industry and the organization of the building and construction process. As a consequence, governance in this industry differs from governance in other industries. The aim of this paper is to point to characteristics of governance in both large and small BCI organizations and suggest in what direction BCI should develop in order to remain globally competitive. To balance the interest of all stakeholders, a social responsibility committee under the auspices of the board should be established in large BCI organizations. The committee would overview the role of corporate governance and consequently overcome the gap between what organizations present in their organisational mission as their aspiration and intention to achieve, and a community perception of it. On the other hand, if small enterprises follow the process of corporate entrepreneurship management, they would achieve a balance among strategic innovation implementation needs, holding management accountable to the shareholders and financial control. Both activities, in large and small organizations, would contribute to sustaining BCI competitive advantage.