According to Mallor, Barnes, Bowers, & Langvardt (2010) “modern corporation law emerged only in the last 200 years, ancestors of the modern corporation existed in the times of Hammurabi, ancient Greece, and the Roman Empire. As early as 1248 in France, privileges of incorporation were given to mercantile ventures to encourage investment for the benefit of society. In England, the corporate form was used extensively before the 16th century. In the late 18th century, general incorporation statutes emerged in the United States” (p. 1009). Verizon Communications Inc. has 13 Board of Directors, 1 CEO, 8 Executive Vice Presidents, 2 Presidents, and 5 Senior Vice Presidents. “Verizon Communications Inc., based in New York City and incorporated in Delaware, was formed on June 30, 2000, with the merger of Bell Atlantic Corp. and GTE Corp. Verizon began trading on the New York Stock Exchange (NYSE) under the VZ symbol on Monday, July 3, 2000.” Verizon Communications Inc. is a publicly held Corporation. In this paper I will discuss the corporate roles and duties of a corporation. I will also discuss the differences of a publicly held and Closed corporation. Finally, I will discuss which type of corporation I prefer. A Review of Corporate Roles and Duties The Role of the Board of Directors 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... ... middle of paper ... ...osition within the company therefore; I do not think one is better than the other. Works Cited The Allbusiness Web site provides answers and articles about corporations (http://www.allbusiness.com Retrieved May 22, 2011 Mallor, J., Barnes, A.J., Bowers, T., & Langvardt, A.W. (2010). Business law: The ethical, global, and e-commerce environment (14th ed.). New York: McGraw-Hill Spadaccini, M. (2005, June 7). What is a "close corporation"?. Entrepreneur Magazine's Ultimate Book on Forming Corporations, LLCs, Sole Proprietorships and Partnerships., Retrieved from http://www.entrepreneur.com/startingabusiness/ startupbasics/business structure/article78032.html, Retrieved May 22, 2011 The Verizon Communication’s Web site provides answers to information about the corporation (http://investor.verizon.com/profile/index.aspx) Retrieved May 23, 2011
The corporate governance within Ben & Jerry’s can be identified to use the two-tier management system as their board of directors is independent from the management (Benjerry.com, 2015). However, it can be argued that the board of directors from Unilever also act as board of directors for Ben & Jerry’s when it comes to financial and economic decisions, as well as the right to fire or hire the CEO at any given time. Ben & Jerry`s board of directors has the power to protect the brand, changes in product standards, introduction of new products and marketing decisions (Edmondson, 2014:
It is stated that Verizon Communications Inc is a holding company that is one of the world’s leading provider of communications, information and entertainment products and services to consumer, businesses and governmental agencies with a presence around the world. They have wireless services (utilizing the largest 4G LTE technology) and wireline services (utilizing local and long distance voice services, data, broadband video, networking solutions, data center and cloud technology. In the report is recorded the investments within the business which they control, investments that they do not control but have the right to exercise the significant influence over are accounted for using the equity method. For investments with no control, they
Stockholders of the company also referred to as shareholders are stakeholders in the company that are considered owners. In most companies once each year, they vote for who will be on the Board of Directors of the company. In turn, the Board of Directors selects the senior management of the company who would run the day-to-day operations for the firm. As decisions of the senior managers in the daily operation that either makes a company profitable or run at a loss. If the results are not to the shareholders liking, they can vote out members of the Board of Directors tool in turn bring on new members of senior management. Some items the Board of Directors would vote on include the issuance of new shares of common stock; they may and also
In the corporate form of business organization, an agency relationship problem exists. In agency theory, the agency relationship problem results from a separation of ownership and control. Self-interest on the part of managers acting as agents, and shareholders who are acting as principals exists within the corporate business organization. Agency theory allows us to understand the behaviors and conflicts that exist for corporation stakeholders and the managers of the company, and can allow for designing of effective incentive structures and other monitoring mechanisms to resolve the agency problem. Institutional ownership also plays a part in monitoring, and controlling agency costs within the corporate form of organization.
The Board of Directors is the highest governing authority in a professional management structure. It is made up of two tiers of individual members who are elected by the shareholders of the corporation to establish corporate management related policies. These two tiers include individuals chosen from within the company such as manager, CEO or other daily worker of the company. The next tier involves chosen individuals that are outside of the company and considered to be independent. These individuals are also elected to make decisions on behalf of the corporations, more importantly public companies must have a Board of Directors in place. The Board of Directors mission is to set a fair representation of management and interests of shareholders for the corporation. The responsibility of the Corporate Director is to act on behalf of the corporation and make sure he/she is presenting its best interests at all times, participating in regular meetings of the Board of Directors, amending the Corporation’s bylaws or articles of incorporation, acting with the loyalty to the corporation and its members, approving some corporate activities which include contracts and agreements, asset purchases, and the election of new corporate officers. When electing personnel into these positions there is an invisible line that needs to be addressed regarding who will serve as a member on the Board. If you have too many internal representatives for the company serving as Directors, the Board will tend to make decisions more beneficial to management. On the other side, having too many external Directors may mean management can be left out of the decision-making process that in turn, will cause managers to feel alienated and leave, instead of a fai...
In an atmosphere where the number one priority is to make as much money as possible, many question rather or not corporate responsibility is possible. Corporate responsibility represents “a corporation’s social and environmental obligations to its constituencies and greater society (Argenti 2013).” In a profit driven environment, there are several factors that can influence or encourage corporations to also consider greater society in the course of their decision making and subsequently in their priorities as well. The process in which corporations make these decision or the deterring elements that show corporations effect on the community that it serves or the community surrounding it, is a viable realm of analysis in the discussion of corporate responsibility. An article perfectly explicates the Corporate responsibility as,
The company has a Corporate Governance and Nominating Committee of the Board of Directors this with the purpose of assist and identify qualified employees, develop evaluating the process, and overseeing board effectiveness and the development and implementation of policies.
This particular statute allows for corporations and such to obtain several, but not all, constitutional rights as any person or persons. In particularly own property, sue and be sued under criminal and civil law, enter contests. Moreover, because corporations and such are considerate as “person”, business has the legal rights for its debts and damages. On the contrary, persons who are employed by a particular association are liable for their own misconduct and law-breaking while acting on behalf of a corporation. In addition, corporation has rights for its own actions, has rights such as: limited free speech and to advertise their product ("The Rights of Corporations," 2009). Likewise, businesses have the responsibility to elect a CEO, provide continuity; increase profits, social responsibilities, and manages recourses effectively (“Functions & Responsibilities of a Corporation").
In a constant changing world, business leader almost have to play catch up with the world so that businesses remain ethical. With a capitalist society, I can see way people would want to maximize their profits and gain wealth. Though company might want to gain maximize profit, they still owe the community and the people who buy their product a corporate responsible. Corporate responsible is the way in which a company act ethically. Recently in the media there had been instances where companies weren’t acting in an ethical fashion. For example when Apple wants to build an IPhone, it contracts an outside company other than ones in the Untied States because of cheap labor. The labor conditions in these factories are unbearable and many worker commit suicide. Apple knows this, but yet still contract these companies. Apple in the eyes of the public is acting in
Economists say that the main goal of a business is to maximize its profits. According to the canonical view a business or a corporation has completed the task of the social responsibility with this maximization, always of course by obeying the laws. But the question that arises under this consumption is whether or not a company must be ethical and behave to its employers and its customers as if it was a good and moral citizen; or as the book says `'a good citizen''.
There are two types of board of directors. The first type called one- tier board system which used by British and American companies. This one- tier type depends on mix of outside and inside directors also called non-executive and executive directors. The main function of the board is to strategically plan and determine the business policy to achieve the companies’ main goals. Accordingly, the main management’s function is to implement what had been determined by the board of directors. All board members whether they are executive or non-executive board member are appointed by shareholders. The shareholders also have the authority to remove and re-assign any board member due to severe low performance or any critical
A company's code of ethics is very important to establishing the expectations and quality of its brand. The code of ethics are concrete expectations for employee behavior, accountability and communicates the ethical policy of a company to its partners and clients. A good business practice is to have sound ethics. Having good ethical practice is knowing the difference between right and wrong and choosing what the right thing is. Though good ethical behavior is something that should be done automatically, a company needs to have a set of rules in place that holds everyone accountable. Over the last twenty years, the country has been bombarded with company scandals and unethical behavior; though morally wrong, the punishment does not fit the crime. The punishments have been overkill. A murderer, rapist, or child molester commits violent crimes and potentially is out of jail in 10 - 20 years. The CEO’s that commit white collar crime receive 25 years to life; this paper will discuss how this punishment for committing nonviolent crimes, such as breaching a company’s code of ethics, are disproportionate to violent crimes that plague the country today.
The Corporate Social Responsibility (CSR) as years pass by transformed into a fundamental part in all affiliation or association because of the impact it has on the society or community. There is no acceptable definition to corporate social responsibility; as a result there is no certain explanation or definition of Corporate Social Responsibility. Moreover, a Corporate Social Responsibility (CSR) can additionally be suggested as ”Corporate Citizenship", “Corporate Governance” which can be defined as the obligation of the association to the ethics, environments and law of the country to the welfare of the society. I will be separating the words corporate social responsibility and defining it individually to give a clear meaning. Corporate can be defined as group of people or individuals with the same interest that works together in an organisation or association either for profit or non-profit. Social in this term can be defined as human behaviour which considers the interest of others and the society. That is doing things you will like others to do to you and this is practical as the expression social was gotten from a Latin word "socius" signifying “friend” Responsibility can be defined as a commitment or obligation of an individual or group of people concerning a task; this is what they are expected or required to do as part of the organisation, community or society.
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.
Mondi also protects high conservation value ecosystems, including wetlands. Social Responsibility- Mondi engages with communities in and around their plantation forests and mills. Their social investments help drive development by focusing on health, education and local enterprise. Business ethics-