Electrolux Group consists of 146 companies operating in more than 150 countries, of which AB Electrolux is the parent company (Annual Report 2015, 2016). The governing bodies’ objectives are to create long-term value for stakeholders of the organization, which comprise maintaining an efficient organizational structure, internal control systems and risk management as well as transparent internal and external reporting.
The governing relationships include the shareholders. Shareholders employ decision-making rights at the annual shareholders’ meetings held in Stockholm, Sweden during the first half of each year (Annual Report 2015, 2016). The shareholder must be present at the meeting, either personally or through a proxy, to participate
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There are nine members without deputies serving on the Electrolux Board, with election taking place at the Annual General Meeting (Annual Report 2015, 2016). The Swedish employee organizations under the Swedish labor law appoints three members with deputies. An election of the Chairman of the Board occurs at the Annual General Meeting. The Board of Directors is responsible for managing Electrolux’s operations and ensuring long-term return on capital for the owners. The Board is governed externally by the Swedish Companies Act, as the company’s shares are listed on Nasdaq Stockholm, the Swedish Code of Corporate Governance, as well as other relevant Swedish and foreign laws and regulations. There are multiple internal regulations that govern the Board which include the Articles of Association of Electrolux, the working procedures established by the board, policies for information, finance, credit, accounting and processes for internal control and risk management. Certain rules govern the business activities of Electrolux based on the Articles of Association which must be in compliance. Electrolux is a Swedish limited liability company, and the Articles of Association are filed with the Swedish Companies Registration Office after adoption by the general meeting of shareholders. In addition, there is an Electrolux Code of Ethics, Policy on Corruption and Bribery and a Workplace Code of Conduct, for which the board must ensure
Lincoln Electric Company has a very distinguished culture, after my readings over the case study it is clear that the strong culture they have prominently reflects their success.
The Australian Stock Exchange’s (ASX) Corporate Governance Council (2014) defines corporate governance as “A framework of rules, relationships, systems and processes within and by which authority is exercised and controlled within corporations”. One goal of corporate governance is for the board members to increase shareholder value (Tricker 2015). In order to achieve this, it is important that the board act appropriately and justly so that the best interest of investors are protected. This report will explore the effectiveness of JB Hi-Fi’s corporate governance. JB Hi-Fi is Australia’s largest home entertainment retailer, selling a variety of products at discounted prices. Over the years, they have maintained a substantial
The corporation’s business is carried out by its management, under the direction of the Board of Directors. The Board, and each committee of the Board, has complete access to management. Also, the Board and committee member’s has access to independent advisors as each considers necessary or appropriate. Mallor, Barnes, Bowers, & Langvardt (2010) state that the Board of Directors also, issues shares, Adopts articles of merger or sha...
The United States located electronic company Electrocorp faced the problem of declining profitability due to rising production costs, specifically high wages, costly worker's safety and environmental standards. In order to solve this problem Electrocorp is deciding whether to relocate some of their plants to South Africa, Mexico, or the Philippines.
These qualities of corporate culture have grown and prospered Lincoln Electric for over 100 years. Lincoln controls approximately 40% of the welding equipment business. Its employees
...zations need somebody outside the company, constantly asking good questions in order to avoid ethical situations. Another important duty for board members is to have understanding of director’s activities to avoid conflict of interest. The main area of concern is investigating reports of ethical misconduct by directors. These investigations can be serious affairs requiring thoroughness and tact. Even if initial incidents appear to be frivolous, investigations can uncover serious ethical lapses. The board can have external investigators under corporate governance program to investigate all reports and conduct of directors.
The Riksdag is the Swedish parliament and is the main decision-making body in Sweden. The Riksdag is based upon the Swedish constitution and is responsible for various matters that affect the country; this includes electing a prime minister, central government budget and adapting new laws. The Riksdag must every four years have an election were the citizens of Sweden will vote on different political parties on who they want in the Riksdag. Inside the Riksdag are 349 members and these members are taken from the different political parties voted on by the public. The seats are divided on a proportional basis to the amount of votes a party received during the latest election. For example last election the Green Party received 7% of the overall votes, so they received 25 seats inside the Riksdag. Since 7% out of 349 is 25.
Under what conditions might the parties to the alliance discussed in this case dissolve or end the relationship?
As we learn from the case study, the Lincoln Electric Company is the largest global manufacturer of machines for welding, which are used in all kinds of construction projects. This means that the company has a large global presence and many employees, so its culture affects thousands of its workers. Even though it is now 2014, the company still has a large market share and very satisfied employees, so clearly the culture leaves employees satisfied and motivates them to work hard for the company.
General Electric Corporation is a multi-billion dollar conglomerate founded in 1892. The company was founded in Schenectady, New York to capitalize on the patents of Thomas Edison and the use of electric power through generation and distribution. Now a blue chip publicly traded company that has branched out beyond its core into arenas such as aircraft engineering, television, and home appliances to name a few. Over the years the corporation has been through different management models that have brought innovation in many forms that have allowed them to be envied by companies around the world. Despite great success since its conception, like many companies who can withstand the test of times, it’s natural for them to become self-absorbed, which can have a negative impact on the company structure as a whole. Coming across someone like Jack Welch who can think out of the box and in a manner that doesn’t strain the resources of the company but expands the thinking of the company as a collective unit is needed to continue the legacy of innovation in all aspects of business.
For setting directors’ remuneration, the board must form a Remuneration Committee. A prior approval from the shareholders of the members on the committee is recommended. However, when it is not possible for solid reasons, the members must be presented in the AGM to the shareholders for approval if they are already appointed. The following guidelines must be followed:
The newly appointed district sales manager, Larry Barr, faces the problem of allocating sales quotas among his various sales representatives. This decision will affect everyone's earnings including his own. This problem is compounded by the fact that different territories have, for a variety of reasons, different potentials. In addition, the territory that is known to be the toughest will soon require a new sales rep.
According to Carol Padgett (2012, 1), “companies are important part of our daily lives…in today’s economy, we are bound together through a myriad of relationships with companies”. The board of directors remain the highest echelon of management in any company. It is the “group of executive and non-executive directors which forms corporate strategy and is responsible for monitoring performance on the behalf of shareholders” (Padgett, 2012:1). Boards are clearly critical to the operation of companies and they are endowed with substantial power in the statute (Companies Act, 2014). The board is responsible for directing and steering the company. The board accomplishes this by business planning and risk management through proper corporate governance.
The nation of Sweden entered the European Union 1995. As a member of the European Union, they takes part in the decision making process when there’s new common rules are drafted and agreed. The Swedish Government also represents Sweden in the European Council of Ministers, where it plays as a decision making system. Some issues previously decided by the Riksdag i.e. the parliament of Sweden are nowadays decided at the EU level.
Corporate governance is the set of guidelines that determines the control and organization of a particular company. The company’s board of directors is in charge of approving and reviewing changes to this set of formally established guidelines. Companies have to keep in mind the interests of multiple stakeholders, parties who have an interest in the company. Some of these stakeholders include customers, shareholders, management, and suppliers. Corporate governance’s focus is concentrated on the rights and obligations of three stakeholder groups in particular: the board of directors, management, and shareholders. Corporate governance determines how power is split between these three stakeholders. A company’s board of directors is the main stakeholder that influences the corporate governance of a company (Corporate Governance).