According to Bechtel (2022), Bechtel Corporation has worked on more than 25,000 projects in 160 countries worldwide since 1898. The company is considered a world-class organization, which puts it in a position of great responsibility to ensure a more open governance to international standards.
In this paper, I will discuss how global governance affects Bechtel and how global governance standards can be improved within the company.
How Bechtel Corporation is affected by Global Governance:
The goal of global governance is basically to agree on several standards to ensure the best performance of the dimensions of good governance such as transparency, integrity, and responsibility (Aguilera, Marano & Haxhi, 2019); this can be applied to Bechtel as:
Achieving Justice: Disjusticetice and disputes between corporations and governmental or independent entities adjudicated by global governance through relevant institutions such as international arbitral tribunals (Born, 2020).
Industry Standards: In the engineering sector we have global institutions whose instructions must be followed globally, the most famous of these institutions is the ISO in the application of quality standards, OSHA and NEBOSH in the application of safety standards (Qi, Zeng Yin & Lin, 2013).
Skills Exchange: Companies like Bechtel benefit globally from exchanging competencies and experiences. The company complies with the laws and regulations of each country individually and is keen on corporate governance procedures that comply with these countries' standards.
Achieving Prosperity and Progress: Implementing global governance makes working in different environments and cultures easier, as the gaps between standards and regulations narrow and sometimes unite. This makes it easier for the company to expand and win new land every time.
Preserving the Environment and achieving This has become the most critical component of global governance; all companies on one planet share their resources. Therefore, the environment must be preserved so that it receives the maximum contribution to solving people's problems, not add more (Berry & Rondinelli, 1998)
Improving Global Governance within Bechtel Corporation:
According to (Hale, 2008), Global governance improvements can be made according to the components of good governance as follows:
Transparency: The company's board of directors will be required to explain the reasons for making decisions that affect the company's growth globally. They must also disclose information that may harm certain countries due to carrying out their projects, such as the construction of nuclear plants, petroleum and natural gas stations, and pollution rates.
Integrity: in some African countries, there is human trafficking and forced recruitment of labor in subcontracting companies; in addition to working at low prices and hiring children, ethical issues must be considered when making decisions related to the organization and its profits. Otherwise, the organization's reputation will be affected globally and sometimes lead to the collapse of customer confidence in it.
Accountability: Some companies operating globally hide their business and multiple relationships with projects for many reasons, including political and economic ones. Therefore, the board of directors must be constantly accountable to global actors.
Responsibility: Many countries have their own foundations and standards for corporate governance. The board of directors must ensure that the organization complies with each country's relevant laws.
Conclusion
Many companies do their business globally without real accountability or the application of global governance standards that guarantee integrity and justice for Justicempa ar considerable risk if they make mistakes that violate global standards for working in a field. For example, car and aircraft companies that abandon safety factors and do not apply international quality standards such as ISO, when this is discovered, it will result in significant losses for companies, in addition to losing reputation and value in the market; all global companies must comply with the standards of good global governance and follow the agreed standards to maintain a continuous approach to success and prosperity.
References
Aguilera, R. V., Marano, V., & Haxhi, I. (2019). International corporate governance: A review and opportunities for future research. Journal of International Business Studies, 1-42. (Review and glean concepts and theories between p. 3 – 36).
Bechtel. (2022). About-us, https://www.bechtel.com/about-us
Berry, M. A., & Rondinelli, D. A. (1998). Proactive corporate environmental management: A new industrial revolution. Academy of Management Perspectives, 12(2), 38-50.
Born, G. B. (2020). International commercial arbitration. Kluwer Law International BV.
Hale, T. N. (2008). Transparency, accountability, and global governance. Global governance, 73-94.
Qi, G., Zeng, S., Yin, H., & Lin, H. (2013). ISO and OHSAS certifications: How stakeholders affect corporate decisions on sustainability. Management Decision.