Heavy Motors Inc. is doing good business in automobile sector in the middle east. The profit as rose over the period of past ten years. The companys policy aims at delivering best product and after sales service to the customers. The company is has achieved its aims well. But, the employee satisfaction survey has revealed a down trend as the employees are not satisfied with work style. The company has focused more on the main objective of customer satisfaction. However, other areas towards stakeholders are not given much care.

Due to regular complaints from the employee cell, the directors have decided the need to revive the company working approach towards stakeholders. As the success of the business is not only on sales and high profits, other factors do add weight age in the development of the company good will and performance. You are appointed, as an expert to guide company with core areas in which company should focus which will enable to the company to become a good corporate citizen.

a) Do you agree that good corporate governance affects the financial performance? Elaborate you answer with relevant examples.

b) In the above case, which core principles, will enable the business to become a better corporate?