Corporate Governance at European Level: Study Case, Romanian Public Enterprises
Objectives - Establishing indicators reflecting the competencies and clarifications of Board members and directors from each public undertaking under the auspices of the Minister, who must have the knowledge, skills and experience to understand the work done within the enterprise framework in accordance with the objectives and Goal 2: Obtaining indicators reflecting the performance of Public Undertakings under the tutelage of the minister, the specificity of the business carried out, the niche performance followed by the shareholders and on its own recommendation by the government corporation structures.
Preliminary Studies - The Corporate Governance Codes, along with the Principles and Recommendations in this area, have been formulated to bring about a reform in Europe and wherever there is a need to implement them. Example of managerial perception of privatization in a department responsible for transport in the state apparatus, if the privatization does not take place due to a lack of confidence in this process of transforming a state rescue system into exceptional future results obtained through privatization , the case of KLM-AIR France, the better relationship of managers and contractors leads to more favorable perceptions of privatization, following the concept of Hart Davis and Kingsly (2005). The research is based on the definition of Corporate Governance from the perspective of established scholars of the field, such as Lord Cadbury, UK (1992), Cadbury Report, in which it is understood a concept of corporate governance, representing the system by which companies are conducted and at the same time are fundamental principles of good governance currently applied at European level.
Approach - The methodology used in data collection, in consultation with the Annual Reports prepared by the Board of Directors of each company, has led to the obtaining of key quantitative information that bases the indicators used in the annual reporting and allows us to study new indicators for the future . In order to obtain the necessary data for the formulation of the hypotheses, we approached the non-participatory observation in the conduct of investigations at the Romanian state companies, used as case study – Tarom air lines.
Outcomes - Obtaining official data from Public Undertakings is a proof of transparency itself, with the expected results automatically achieving the objectives and providing answers to research questions. Along with these, I expect research results to be used by those who want to be aware of new trends in emancipation of top management and to get an overview of how to apply the principles of good practice governance in the EU member countries and making a comparison with the way of implementation in Romania. At the same time, the substantiation of some technical performance indicators reflecting the niche activity of Public Enterprise is an integral part of this research and has as a starting point the key performance indicators used in the current situation of monitoring the performance of Public Enterprises.
Value - In the Romanian public administration, the recent progress has contributed to the improvement of the legal and regulatory framework against abuse, which is why I proposed to bring to the fore the importance of studying this area, adding value, by studying the possibility of adopting new tools for the public sector in Romania, support mechanisms, simple, uncompromising, completing the set of indicators adopted so far in managerial internal control.
Index Terms - Corporate Governance, KPIs, Management, Public Administration, Transparency.