Veolia Case Study

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The purpose of this essay is to appraise the various Governance and Risk Strategies, specifically between Veolia Group, a French publicly listed global business providing optimised resource management, and Majid Al Futtaim, a prominent private family business with interests in retail, real estate, shopping malls, and leisure. These two organisations have shared ownership in the Joint Venture, MAF Dalkia, who’s core activities are in Facilities and Energy Management. It’s noteworthy that there have been very few public reports and investigations in France and none in the UAE, hence setting the scene from a UK and European perspective. The early 1990s saw increasing calls for standards in corporate governance to be raised in the wake of the…show more content…
Over recent years Veolia has issued multiple profit warnings, and there were extensive reports of board room disputes. It could be argued that under this unitary and joint Chairman/ CEO model which Veolia was operating, the internal issues of the Board were having a negative effect the performance of the business and that shareholders interests were being neglected. If the roles of Chairman and CEO were to be separated with a clear distinction between driving the tactical and operational strategy and maintaining its stakeholders interests, it would have helped to create a balance between management and control, the competitive advantage and ‘added value’ of boards contribution, and its involvement in the strategic debate between the Board and…show more content…
Its business is heavily influenced by regulation and statutory compliance; many of its risks are outside its own control and have a significant effect the Groups profitability and Shareholder value. Unforeseen and uncontrollable events are key elements in Veolia’s strategic considerations, but at the same time, it must balance its risk appetite with its drive for maintaining and gaining market share. Veolia operates in highly regulated and often exposed environments, and is heavily influenced by external factors (i.e. political, economic, social, technological, legal and environmental). Its governance and risk strategies are based on its social, environmental and ethical responsibilities, which are tied into its overall corporate strategy
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