The ancient Greek philosopher Aristotle said happiness is the ultimate purpose of human existence. Unlike fleeting passions or material wealth, happiness was traditionally seen as a state of fulfilment. Today, this concept significantly influences corporate governance.
Governance, as defined by the Governance Institute of Australia, is the framework through which organisations operate and are held accountable.
Similarly, the Institute of Certified Secretaries of Kenya highlights that good governance encompasses accountability, transparency, the rule of law, and effective resource management.
Strong governance is vital for managing organisations ethically and sustainably, serving all stakeholders, and driving growth.
However, governance failures often arise from neglecting employee happiness, which impacts key governance pillars such as diversity, inclusivity, resource management, compliance, and risk management.
Happiness fosters inclusivity, encouraging leaders to hire diverse teams and promoting cooperation. A happy workforce reduces conflicts, supports integrity, and enhances governance.
Furthermore, happy employees willingly participate in community programmes, building goodwill and strengthening social governance.
Transitions within organisations can weaken governance, particularly if employees are unhappy or inadequately inducted. A culture of continuous learning and incremental improvement thrives in happy environments, ensuring knowledge retention and process evolution.
Happy employees also exhibit discipline, following established protocols and reducing risks. They are motivated to provide excellent service, directly correlating with improved customer satisfaction and organisational reputation.
Their sense of ownership encourages prudent decision-making in spending, hiring, and resource management.
Ethical conduct is another hallmark of a positive work culture. Happy employees contribute to long-term improvements and are mindful of resource usage, engaging in eco-friendly practices such as recycling and reducing waste. These actions lower costs and enhance sustainability.
Discipline, a cornerstone of governance, is more likely in a positive environment. A culture that institutionalises discipline helps reduce misconduct. When management takes action against wrongdoers, it garners support from employees.
Happy employees adhere to rules and take time to familiarise themselves with the code of conduct. They are also willing to mentor and counsel their colleagues, encouraging adherence to acceptable behaviour within the organisation.
Happy employees are essential for regulatory compliance and effective risk management. While organisations create risk registers and matrices annually, employee dissatisfaction can result in low participation and poor attention to detail.
The key question for leaders to ask themselves is this: if employees are on their way home and hear about a fire at their workplace, will they rush back to help extinguish it, or will they continue home and seek details later?
The writer is a Fellow of the Institute of Certified Secretaries of Kenya (ICS) and Director, Human Resources and Corporate sustainability or Director of Happiness at Isuzu East Africa.
