CORPORATE MANAGEMENT OF ELECTRICITY COMPANIES: PROBLEMS AND PERSPECTIVES

Abstract

The utilities are distinguished by significant material and financial power, exceptional market power, the realization of large revenues, employing several thousands of workers, whose results represent a significant part of the GDP. The utilities are of great economic forces, they represent an economic synthesis between management, labor and capital, giving an identity to the company in a given socio-economic environment. The particularities of a corporate-type company come from different missions that give it an identity, but also from the pluralism of interests of different stakeholders – interested parties. The basic requirement for a modern corporation is to create wealth for the key interest groups, i.e. stakeholders, in the way that suppliers of financial inputs ensure returns on their investment. Therefore, good management of the utilities is of crucial importance for realizing their positive contribution to economic efficiency and competitiveness.
Corporate management is the process of managing, directing and supervising the operations of an utility, in order to create value for shareholders, assess investment risk and the expected rate of return on investments, as well as supervise capital investments, and at the same time protect the interests of other stakeholders. Corporate management is a monitoring mechanism for evaluating corporate responsibility and reliability through: boards of directors, supervisory board, audit committees, management and auditors. Corporate management would not be necessary if management acted in the best interest of shareholders and if corporate guardians: boards of directors, legal advisors and certified public accountants, efficiently performed their entrusted tasks and professional responsibilities. Therefore, the corporate management structure promotes the trust of the company by increasing the transparency of the financial reporting process, based on the corporate management standards adopted by the Organization for economic cooperation and development (OECD).