Corporate Governance Benchmarking Paper

6593 Words27 Pages
Corporate Governance Benchmarking
Businesses in today’s society must be aggressive and competitive to meet the demands of consumers. The corporate culture must be one of shared beliefs with expectations and values that influence and guide the thinking of individuals in a positive and ethical manner. As each organization’s success depends on profitability and productivity, the magnitude of success or failure can be controlled by a few bad apples within the organization. Organizations capable of misleading, cheating and fraud have been highly frowned upon through the collapse or disarray of many organizations.
Team A will provide a brief synopsis of specific organizations experiencing unethical challenges and how these organizations
…show more content…
HP management faced charges of unethical activates such as using unlawful and unethical techniques to monitor HP reporters and directors leading the HP director Patrician Dunn to admit defeat to the courts (MARKETLINE, 2006). HP Patricia Dunn responded to the issue by surrendering herself to the law, but the outcome was a dismissal. HP continues to be successful, but the leaders should define the roles of management in corporate governance by communicating. MFSI is similar to HP’s unethical practices of running the organization through lack of effective communication. According to Chew and Gillian (2005), “Incentive plans often fail to achieve credibility because they are not explained adequately. Uncertainty creates doubt, and doubt undermines success” (Chap. 20, p. 5). MFSI should benchmark HP to learn to identify the seriousness of unethical practices, and think twice before implementing an unlawful method. The CEO of MFSI does not like anyone to control the companies investing options, and therefore is directing other staff members to conduct unethical activities associated with the hiring of directors. However, MFSI does fall under the guidelines of the SOX. According to Chew and Gillian (2005), “SOX mandated changes that will affect executive compensation, shareholder monitoring, and, particularly, board monitoring” (Chap. 6, p. 8). The CEO Hugh McBride should improve focus and arrive at the right measure by strengthening his corporate plan. HP
Get Access