What Was The Role Of The Stakeholders In The Enron Scandal Essay

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

CEO: Serve as the team leader and final decision maker for the company. The CEO is the face of the organization and will be the primary voice for any public statements made.

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”.

Selecting board members with varying backgrounds will complement the skills of others of the group. Professionals such as attorneys and CPA’s provide diversity to board configuration. In addition, the board of directors is often responsible for reviewing financial statements and contracts. Legal opinions and an accountant’s insight and suggestions assist management in making decisions relating to their occupation.

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

It is the board's responsibility to consider and authorize a suitable remuneration package for the company's chief executive officer (CEO), make recommendations with respect to the attractiveness of dividends and dividends pay out, approve stock splits, form the audit committees, approve the company's financial statements, oversee management’s involvement in the shareholders and other stakeholders long-term interests and recommend or discourage major decisions such as acquisitions and mergers.

The Board of Directors will be made in place of the Honorary Council to provide an actual constructive benefit to SANews rather than just being title that grants guaranteed high command positions. The Board of Directors will be a privilege and positions are only to be given to SANews reporters that have shown not only a great amount of dedication to the faction but has also played a major role in the faction and left a great impact.

The primary responsibility of directors is to oversee the management of the Company and, in so doing, to exercise their business judgment to act in what they reasonably believe to be the best interests of the Company and its shareholders. In discharging their duty of oversight, directors should give careful attention to the selection of the Chairman and the Chief Executive Officer and should monitor their performance and that of the Company. The Board should

The Board of Directors are an executive subculture as they are the hierarchy of a higher education institution. They maintain control and financial stability/profit, and are responsible for the survival and growth of the institution. In for-profit universities, this group also includes the shareholders that play a large role in the running/management of the

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

Widely known as the champion of the energy industry, Enron is suddenly faced with a corporate crisis in the form of a scandal. This scandal involves not only Enron’s accounting practices but also its corporate governance and culture (Lawrence & Weber, 2008). This report will recommend some potential strategies for Enron to move forward from the scandal. To do this, we must incorporate stakeholder theory, which “argues that corporations serve a broad public purpose; to create value for society” (Lawrence & Weber, 2014, p 6.). This means that Enron must take responsibility for the scandal it created and take actions to regain its stakeholders’ confidence. To accomplish this, we will first identify and analyze Enron’s primary

These people had the chance to cheat millions from the organization and they exploited that for quite a long while before being halted. These were the top executives at Tyco so in spite of the fact that others comprehended what was going on, they didn't approach and confront the administrators committing swindle. The internal controls set up were insufficient to prevent the extortion and fraud from happening and on the grounds that the tone from the top inside of the company was that conduct of that sort was alright, others didn't approach to stop it either. The legitimization utilized by the culprits could have been that they buckled down for the organization and in this manner merited the additional remuneration. Likewise, they may have thought they would in the long run pay it back. General however, the primary inspiration in the scandal was

It becomes vital to fathom the different groupings of directors and their duties in diverse types of companies. In application, companies will have different ranks of

Within CIB, The Board of Directors (BOD) (see exhibit 1) is responsible for providing leadership and guidance in terms of a providing a strong strategy and controls to deliver value to all stakeholders; shareholders, employees and the entire community included. The BOD includes Mr. Hisham Ezz Al-Arab as Chairman and Managing Director, whom joined the CIB team in 2002. The board is divided into eight separate committees; Audit Committee, The Governance and Compensation Committee, The Risk Committee, The Management Committee, The High Lending and Investment Committee, The Affiliates Committee (AC), Sustainability Advisory Board and The Operations and IT Committee. Each committee is responsible for a specific function (see exhibit 2).

Priority should be given to the use of cumulative voting in the election of the board members