Corporate Management Related Policies And Decisions On Major Company Issues

Common stockholders are the basic owners of a corporation, but few stockholders of large corporations take an active role in management. Instead, they elect the corporation’s board of directors to represent their interests. Board members seldom get involved in the day-to-day management of the company. They establish the basic mission and goals of the corporation and appoint

Because the Board of Directors only meets four times a year, the day-to-day operations are managed by a Chief Executive Officer. The CEO has appointed five Chiefs as his

It is essential that the role, duties and responsibilities of directors are clearly defined. The Combined Code (2006) states that “the board’s role is to provide entrepreneurial leadership of the company within a framework of prudent and effective controls which enables risk to be assessed and managed”.

Apart from the company president,which is the head,the company still has a Board of Directors with the chairman of the board.And also an advisory board,elected by the workers are generally valued by the employees.

Finally, and perhaps most importantly, consider what the prospective directors ' affiliation might be with executives. Members of the board are often obliged to make arduous decisions concerning finances, personnel and salaries. Ensure that potential members do not have a conflict of interest concerning management and other key personnel. Professionals emphasize board members must

In large corporations the success or failure of the company is the responsibility of the board of directors. According to Richard DeGeorge, “The members of the board are responsible to the shareholders for the selection of honest, effective managers, and especially for the selection for the CEO and of the president of the corporation.” (p. 202). The board members have a moral responsibility to ensure the corporation is run honestly, in respect to its major policies, and to ensure the interests of the shareholders are satisfied. The next responsibility within a corporation is the responsibility management has to its board of directors. DeGeorge writes, “It must inform the board of its actions, the decisions it makes or the decisions to be made, the financial condition of the firm, its successes and failures, and the like.” (p. 202). The management of the corporation is morally obligated to

Although each member has specific role, they all are strategically aligned. The CEO role is to manage the entire company. With this function, the CEO is much involved in succession planning for the company. The board of director’s role is assist with any decision making for the company. Mlot and Sorensen (2013) mentions that five board members provide practical advice to HR organizations regarding succession planning. Human resource role is recruiting and developing talent. With this function, human resource plays a critical role in selecting and developing talent for succession

It is important for board members to have some insight into the day-to-day operations of the organization since they technically are volunteers and donors. They dedicate time to governing the organization and financially contribute their own money and/or encourage others to do so. However, board members are generally busy people who do not have the time for all of the minute details. They want the overview to make the necessary decisions on behalf of the organization and not be overwhelmed with details and the normal tasks that the staff would handle.

Joshua Kennon (2007), stated that “The board of directors is the highest governing authority within the management structure at any publicly traded company and is usually made up of the directors who are elected for a specific number of years by the shareholders”. According to Wikipedia,” A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization”.

Finally, Hausman needs to evaluate the cost. Since members of a board of directors have a great responsibility for the company, they are compensated accordingly, whereas members of an advisory board are not compensated or compensated to a lesser degree.

First of all, in Walmart, the Board of director is the most powerful governing authority who are responsible for setting the framework and management structure in general. It is committed to be operated in fairness and integrity in order to ensure the shareholders’ trust. Board of directors’ internal duty is to control mechanisms for good governance are adequate. This includes setting up legal existence, establishes company’s vision, key mission, strategic direction, selecting and appointing chief executives, governing the organization via policies and objectives to guide other agencies following up. All strategic decisions of the corporation would be raised and agreed by the board, such as hiring a CEO, approving to do a major financing or acquisition. Its primary responsibility is protecting shareholders’ asset as well as

The Board of Directors are in charge of determining the corporation’s leadership structure on an annual basis and determine if the board will be led by an independent Chairperson or an independent Lead Director. The board has decided that Ronald Sargent, the CEO of Staples, will remain and the Chairman of the board. The Board of Directors is broken down into five committees made up of around three or four board members. Each committee has there own responsibilities and are in charge of making critical decisions that they must assure is communicated properly throughout the entire company. This leadership structure assures that the Board of Directors has a proper balance of leadership roles that allows for a system that prevents any conflict of interests that may come from having the CEO serving on the board.

The board will help set strategies, direction, vision, hire/fire top management, monitor and supervise top management, oversee the use of resources, and care for shareholders' interests (Wheelen & Hunger, 2006, pp. 36-37).

The Board of the Company consists of 11 (eleven) Independent Directors and 2 (two) Inside Directors. They have expertise in the areas of business, finance, law, audit and public companies.

There is extensive research on board composition and the importance it places on different aspects of organisation performance. (Kang H, et al 2007).