Nowadays, everyone is talking about corporate social responsibilities and corporate governance not only in terms of business ethics but also as the heart and soul of a corporation. According to the Economic time, (2009) “Corporate governance refers to the set of systems, principles and processes by which a company is governed.” All these illustrates how the company should be managed and controlled in order to perform better on the market and accomplish its short and long-term goals and objective.
All business organization has two things in common: owner and CEO. The owner of a business organization is the person who has all the rights though the organization. He/she can fire and hire the employees, executives and CEOs. I agree with William Pounds statement that the owner is the person who owns and controls assets and the CEO is the one who use these assets in behalf of the organization and its value creation. (TepperCMU, 2009)
Figure 1 illustrates one of the most common governance structures among organizations. Basically, the shareholders are those who vote for the board of directors who are obligated to look after shareholders’ interests. The board hires and fires the CEO who can hire and manage the executives and employees. The executive managers are also allowed to hire and manage employees and to look out for their actions. Looking at the chart, I would say that there is a gap between shareholder, board of directors and workers, which can bring the profit down. So that we can say that, the CEO is the main figure who has to stay between the board and employees and take care of the good image and cash flow of the organization. In one of his publications, Chris MacDonald, an educator, speaker, and consultant in the realm o...
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...e traditional governance responsibilities, finance and strategies of an organization. As Lavy states at first, the board should focus on what the company needs and then to keep the things simple. (Santa Clara University, 2012) For instance, it is now what the board likes to do but it is all about what must be done in favor of the company’s health. Also, they need to keep the meeting pretty straight forward and engage people into the point.
The board of directors should be very careful when they give instruction the CEO. To many bosses and opinions can affect CEO’s actions and make him/her acts irresponsible. Like Levy, I would say that it is helpful for the board to decide who will be the person who will give instructions to the CEO. In that way, the CEO will be manage by only one person who can be his mentor, advisor and the only person who will look after him.
The CEO needs to create a corporate culture. His culture will determine what people should be doing and what should do not be trying. He can decide who will stay, who will leave, and how the job will get done. Culture starts with the boss. He can decide how he wants people to act and start modeling the behavior publicly. STOPPED HERE…!!!:)
The reason that I chose to do this article is because in class I found the discussion of CEO’s
CEOs and Board Members need to be collaborative in dealing with increasing complexities of healthcare management. Having the correct Boards members could make the difference between a well run managed successful healthcare institution and one that fails. There are many components needed to have to the correct board members. As noted in our book having the correct people on the board is necessary, however the process is more complicated than just selecting those people are felt be “good fits” to be member of a board of directors.
Loblaw Companies Limited manages several subsidiaries and many stores in Canada and The United States, as a result, the Board of Directors play a crucial role in overseeing the effective management of the company. The Board regularly reviews management’s strategic plans and monitor performance of management against approved objectives. The Board also manages Loblaw’s approach to corporate governance, and makes sure the Corporation accurately provides information to shareholders and the public. The Board makes sure the senior management engages in ethical and legal conduct and maintain a culture of integrity. The responsibilities of the Board include: Define shareholders expectations and monitor corporate performance, establish strategic goals, performance objective and operational policies, delegate management authority to the executive chairman, monitor financial disclosure, monitor enterprise risk management, oversee effective external communications, monitor corporate governance, and monitor corporate social responsibility, integrity, and ethics.
We now know a few things about CEOs. Their job is to make their organizations look good, however troubled and ineffective they might be. They do not feel obligated to divulge troubling information that might affect public confidence, cause valuable employees to leave, or make it difficult to recruit in the future.
CEOs have an extremely difficult job within their organization. This is why they are paid so much. CEOs look at the organization as a whole and figure out what they can do to make the organization better. Patrick Lencioni really surprised me in The Five Dysfunctions of a Team. He did not just talk about the reasons why teams are dysfunction, he told a story.
Section 2: Question one What are the responsibilities of 1 the board.2 of the CEO? What is the board’s responsibility to the stake holders in this community? In general nonprofit boards have certain fundamental responsibilities such as understanding the organization’s mission and providing financial oversight. Boards struggle mostly with their external responsibilities which include fundraising, advocacy, and building community outreach.
The CEO has a very different approach to delegation than the board of directors; she tends to micro-manage her staff. Her idea of delegation leans more to assignment of a task and proceeding to dictate exactly how she desires the task to be accomplished or assigns the task without giving authority to carry it out. The CEO makes assignments to members of her Corporate Leadership Team (program direct...
Organizations that only have top management as the board members are more susceptible to accounting malpractices. Members of the board should preferably own shares in the company to ensure diligence when it comes to the interests of the company. Apart from the Board of Governors, there should also be an audit committee in place to oversee the financial dealings of the bank. Members of the board and the audit committee should have basic financial knowledge. Some of the members should also be experts in finances so that they can detect any anomaly that may take place in terms of financial reporting. An overhaul of the regulatory framework is required to empower authorities to intervene immediately, and make improvements. New technology is required. Manual antiquated processes should be eliminated because this causes greater human error and poor
The board of directors has both executive and non executive directors. Executive directors have both executive and board duties to perform while non executive directors have only board responsibilities. Therefore both types of directors vary in the responsibilities and authority they have in the company affairs. Thus the non executive directors devote very little time to company affairs ( only attend board meetings, committee meetings of which they are members or sometimes pay a visit to the company premises for getting knowledge of how things are done).
“Corporate Citizenship” can be defined as the ways in which all companies interact with the interest of shareholders and other stakeholders of the organisation. It mentions in (Ganguly, 2017) that corporate citizenship is about how companies behave ethically in the business through a variety of different methods such as in monitoring the accounting information or being sustainable taking
Corporate Social Responsibility is an organisation’s obligation to serve the company’s own interest and the one’s of the society. Moreover, Corporate Social Responsibility has a definition of a concept where the companies integrate social and the environmental concerns into their own business operation and also on a basis of voluntary with their interactions they have with the stakeholders. Corporate Social Resp...
...can be an arbiter of business responsibility to society through the application of tax incentives or tax credits. In good corporate governance, the management should be able to meet their social responsibilities, these include making sure that their products are not hazardous to people and to the environment, sharing their profits for the good of the community as a natural person or human being would do, donating to social causes, organizing activities to benefit the community.
They are hold a specific executive power conferred onto them with and by authority of the board of directors and/or the shareholders and they also focus on managing the senior or executive management instead of the day-to-day activities of the business.