How Corporate Governance Is The Control Of The Strategic Direction Of An Organization

The board carries out the duties in regard to the interest of the companies’ shareholders, staff,

1. Financial Publics: The Company’s Board of Directors, which is elected by the stockholders, is the ultimate decision-making body of the Company, except with respect to matters reserved to the stockholders. The Board selects the Chief Executive Officer and other senior executives of the Company, who are charged with directing the Company’s business. The primary function of the Board is oversight—defining and enforcing standards of accountability that enable executive management to execute their responsibilities fully and

Corporate governance is a set of actions used to handle the relationship between stakeholders by determining and controlling the strategic direction and performance of the organization. Corporate governance major concern is making sure that the strategic decisions are effective and that it paves the way towards strategic competitiveness. (Hitt, Ireland, Hoskisson, 2017, p. 310). In today’s corporation, the primary objective of corporate governance is to align top-level manager’s and stakeholders interest. That is why corporate governance is involved when there is a conflict of interest between with the owners, managers, and members of the board of directors (Hitt, Ireland, Hoskisson, 2017, p. 310-311).

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

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

* The roles and responsibilities of the board of directors in corporate governance and the way the board affects a company’s operation.

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”.

Describe the role of the Board of Directors in comparison to the role of the Executive Director. What is expected of each, who is in charge of what and in what

Coyle (2014) notes that the composition of the Board of Directors is dependent on the size of the company. The board is normally composed of a chairman, the Chief Executive Officer, a Senior Independent Director, executive directors and non-executive directors (NEDs).

The Board of Directors currently hosts 13 members, of which, four are women and two are minorities. There are six distinct committees of the board consisting of (a) audit, (b) compensation and benefits, (c) finance, (d) nominating and corporate governance, (e) public policy, and (f) science and technology. The committees receive recommendations and guidance from 22 corporate officers and 19 company group chairmen. The 2005 Annual Report also details the accomplishments of the members of the Board of Directors. There is a vast wealth of experience and knowledge within the Board of Directors including:

Above all else, the board is accountable to the membership for the future of the organization. A successful board is made up of a diverse members who possess these characteristics. Let’s look at a these different qualities. It is important to note, these are not all of the qualities and every successful board member does not have to possess all of these qualities.

The board of directors holds a very critical management function within or organization with the following criteria essential for membership:

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.

Board of Directors are made up elected officials that represent the “stockholders to establish corporate management related policies and to make decisions on major company issues” (Investopedia) Board of directors have a dual mandate to function both as an advisory board and and oversight board. In their advisory role the board will “consult with management regarding strategic and operational direction of the company” (Larcker 2). As an oversight board they will “monitor company performance and reduce agency cost”( Larcker 2).

Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals. Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the