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30問 • 1年前

問題一覧

• - relates to the exercise of control and authority; governance remains important as a mechanism for ensuring continued growth, change and accountability for organizational resources and strategy

Governance

- formal system of accountability and control for organizational decisions and resources

• Corporate governance

- involves the process of auditing and improving organizational decisions and actions

• Control

relates to a system of checks and balances that limit employees' and managers' opportunities to deviate from policies and codes of conduct.

• Oversight

relates to how well the content of workplace decisions is aligned with a firm's stated strategic direction.

• Accountability

There are two major conceptualizations of corporate governance that were derived in this set-up -

shareholder model and the stakeholder model.

- model that bases management decisions toward what is in the best interests of investors; founded in classic economic precepts, including the maximization of wealth for investors and owners

• Shareholder model of corporate governance

- model that sees management as having responsibility to its stakeholders in addition to its responsibility for economic success; based on a collaborative and relational approach to business and its constituents

• Stakeholder model of corporate governance

Corporate Governance Issues

• Executive compensation • Composition and structure of the board of directors • Auditing and control • Risk management • CEO selection and termination decisions • Integrity of financial reporting • Stakeholder participation and input into decisions • Compliance with corporate governance reform • Role of the CEO in board decision • Organization ethics programs

- have the responsibility to act for the best interest of those they serve; their membership is not designed as a vehicle for personal financial gain.

• Boards of Directors

- Because they have allocated scarce resources to the organization, "_________ expect to grow and reap rewards from their investments. Shareholders, including large institutional ones, have become more active in articulating their positions with respect to company strategy and executive decision making. •

• Shareholders and Investors

• fundamental to effective operations, as they allow for comparisons between the actual performance and the planned performance and goals of the organization.

Internal Control and Risk Management

is normally used to indicate responsibilities associated with insurance, liability, financial decision and related issues.

- Risk management

Risk can be categorized as

1. A hazard, which in case risk management focuses on minimizing negative situations such as fraud, injury or financial loss. An uncertainty that needs to be hedged through quantitative plans and models An opportunity for innovation and entrepreneurship

Issues in Corporate Governance Systems

Board of Directors Shareholders and Investors Internal Control and Risk management Executive Compensation

are persons and place in positions of trust who used to care and loyalty in acting on behalf of the best interest of the organization

Fiduciaries

there is a duty or care also called a _______ to make a inform and prudent decision

duty of diligence

means that all decisions should be in interest of the corporation and its stakeholders

duty of loyalty

exist when a director uses the position to obtain personal gain usually at the expense of the organization

conflict of interest

characteristics found to be very helpful and looking for an effective board of directors namely

independence quality performance

who have valuable expertise yet little listed interest and the firm before assuming the director role

outside directors

is a broad term that can encompass engaging in dialogue with management attending annual meeting submitting shareholders resolution bringing all lawsuit and other mechanism designed to communicate shareholder interest of the corporation

activism

social responsibility as a condition for doing business and as with customer requirements a friend should for find the most efficient way to meet requirements from the government and other external groups

license to operate

like research and development social responsibility is designed to improve the business environment for future progress

long term business investment

n companies that focus on social responsibilities stronger customer loyalty more committed employees better government relations and ultimately stronger reputations

vehicle part achieving goals will have an reputatio

responsible activities help companies avoid being singles out are exposed to an necessary outsider intrusion

activity to avoid exposure and

company should reach force the economic foundation of viability of the communities in which they operate

economic and constructive

business and society are interwoven and interdependent rather than distinct entities

relationship

should act responsibly in its relationship with other stakeholders who have a legitimate interest in the business

responsibility and stakeholders management

companies are designed to increase shareholder wealth

oxymoron

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Jennie Rose Carpo · 24問 · 2年前

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