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Corporate governance rules and principles
Corporate governance rules and principles
Corporate governance rules and principles
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Ralph Nader, Mark Green and Joel Seligman, in an excerpt from Taming the Giant Corporation (1976, found in Honest Work by Ciulla, Martin and Solomon), take the current role of the company board of directors and suggest changes that should be made to make the board to be efficient. They claim the current makeup of the board does not necessarily do justice to the company because “in nearly every large American business…there exists a management autocracy” (Nader, Green and Seligman, 1976, p.570). The main resolution they present is to make the board more democratic with the betterment of the company as its first priority. Currently the board no longer oversees operations, or elects top company executives and they are no longer involved in the business operations to the extent they should be. Nadar, Green and Seligman argue that that all of these things need to be changed. For a corporation so large to be successful there must be separation of powers just as there is in any current government system ( p.571). They claim this is the only and best way to success (Nader, Green and Seligman, 1976, p.570-571). Nadar, Green and Seligman first and foremost want to change the initial election process. Their idea is that the board should be made up of all persons who have never worked for the company on whose board they will be serving. There will be nine of these individuals and they will all have the assigned duties that will be discussed in the next paragraph. They will each also have a specific area of expertise relating to the well-being of the company such as finances, customer relations, legal issues, etc. They especially want the directors to be elected in a democratic manner strictly by shareholders, and all funding for c... ... middle of paper ... ...t is being made. The overall idea that Nadar, Green and Seligman present is that we need to allow the board to play its original role and to remove the excessive amounts of power that are current held by the highest company executives. Their goal is to make companies democratic just like the American system government and to make all who participate accountable for the actions they take. Works Cited Goldman, A. (1983). The Justification of Advertising in a Market Economy. Honest Work (pp. 299-303). New York, New York: Oxford University Press. Nadar, R., Green, M., & Seligman, J. (1976). Who Rules the Corporation?. Honest Work (pp. 570-575). New York, New York: Oxford University Press. Werhane, P., & Radin, T. (1995). Employment at Will and Due Process. Ethical Theory and Business (Sixth Edition ed., pp. 266-275). Upper Saddle River, New Jersey: Prentice Hall.
Goldman opens our eyes here to the idea that advertising is something required for the free-market to function properly. One of the biggest things in the market affected by advertising is media which would not exist at a fair market price today if it were not for advertising. Goldman continues to justify this argument up by pointing out that, at its core, advertisement is just a way to provide information, nothing more and nothing less. It is there to make people aware of their options and show them what is available on the market. Goldman also points out that there are multiple arguments for and against advertising as a whole and what it is meant to accomplish, this in itself allows for one to conclude that advertising is exactly like any other product of the free m...
The corporation’s business is carried out by its management, under the direction of the Board of Directors. The Board, and each committee of the Board, has complete access to management. Also, the Board and committee member’s has access to independent advisors as each considers necessary or appropriate. Mallor, Barnes, Bowers, & Langvardt (2010) state that the Board of Directors also, issues shares, Adopts articles of merger or sha...
To understand what went wrong at Vector Aeromotive Corporation we have to understand what the purpose of the board of directors is. The board of directors at any organization has very defined roles and responsibilities within the business organization. Recruiting, supervising, retaining, evaluating a...
“The financial crisis and various corporate scandals have caused widespread concern over the way corporations are governed and their responsibilities to stakeholders.” Regulators and academics have emphasised the importance of board diversity in improving the strategic and monitoring role of the board, and preventing further business failures. The discussion has recently concentrated on the poor representation of female members at board level, which seems to be a common problem in most countries, including the United Kingdom. It has been suggested that women can provide boards with “unique qualities and resources that can improve board dynamics, strategic decision-making and firm performance.
Each year people are robbed due to false advertisement, or so they think. Sue Jozui in her passage suggests that the people should boycott the advertisement business. The author supports her argument by first listing ways the advertisers advertise the products. She continues by demonstrating the “personality”of the advertisers, and telling us what they do. Jozui’s purpose is to point the flaws in advertisement so that people can see what they are truly doing so they can boycott them. The author creates a bitter tone for the consumers. One can disagree with author Sue Jozui’s argument, the people should boycott the advertising business for false advertising, using celebrities to advertise, and to form rules to regulate advertisement.
Nike's board of directors consists of both management directors and dependent directors. The combination of these two types of directors benefits Nike in that there is a presence of those directly involved with Nike as well as others indirectly involved who bring outside experience, provide another frame of reference and can assist in overall board in thinking 'outside the box' (Enderle, Hirsch, Micka, Saving, Shah, & Szerwinski, 2000).
The board of directors is a group of individuals, mostly non-executives, who are elected to become the highest governing authority of any publicly traded company. Because of this power it is their primary responsibility to do whatever is in the best interest of the company and the owners of the company, or in other words, the shareholders. It is their responsibility to protect the shareholders’ assets and ensure that they receive a return on their investment. Within this responsibility it is the board of directors’ role to make decisions on major issues that a company would face. In order for the board of directors to effectively solve these issues they must act both as an advisory board, and an oversight board. The board of directors’ role as an advisory board would be to consult with management regarding strategic and operational direction of the company, and the role of an oversight board would be to monitor the company’s performance and reduce agency costs. (Stanford CITE) Some of the issues that would fall under the responsibility of the board of directors in the US and the UK would be to: select, evaluate, and approve compensation for top executives of the company, approve the corporate strate...
Ciulla, Joanne B., Clancy W. Martin, and Robert C. Solomon. Honest Work: a Business Ethics Reader. 2nd ed. New York: Oxford UP, 2011. Print.
The debate whether diversity is beneficial to corporate governance or not has persisted over the years. In this context, the concept of diversity relates to boardroom composition and the wide-ranging blend of characteristics, expertise, and attributes supplied by individual board members (Grosvold, Brammer and Rayton, 2007, p. 344). What is more, diversity in corporate boards of directors can assume a variety of forms, counting individual demographics such as, nationality, race, ethnicity, and gender (Singh, Terjesen, and Vinnicombe, 2008, p.48). Boardroom diversity in listed companies is dictated by an array of diverse factors, including profitability, company size, as well as the size of the board (the number of non-executive and executive directors) (Grosvold, Brammer and Rayton, 2007, p.346). In listed companies, the board of directors usually serves at least four significant roles i.e. controlling as well as monitoring managers, providing counsel and information to managers, ensuring conformity with relevant laws as well as regulations, plus connecting the corporation to the external business environment (Carter et al. 2010, p.398).
McFall, E. (2004). Advertising: A Cultural Economy, London: Sage, Page 3, Page 110, Page 111
Organizations that only have top management as the board members are more susceptible to accounting malpractices. Members of the board should preferably own shares in the company to ensure diligence when it comes to the interests of the company. Apart from the Board of Governors, there should also be an audit committee in place to oversee the financial dealings of the bank. Members of the board and the audit committee should have basic financial knowledge. Some of the members should also be experts in finances so that they can detect any anomaly that may take place in terms of financial reporting. An overhaul of the regulatory framework is required to empower authorities to intervene immediately, and make improvements. New technology is required. Manual antiquated processes should be eliminated because this causes greater human error and poor
Goodrum, Charles and Dalrymple, Helen, Advertising in America: The First 200 Years. (New York: Harry N. Abrams, Inc., Publishers, 1990). 37.
The continuing influence of the founders of the company, James Lincoln created the Advisory Board Committee which allowed them to meet twice in a monthly basis to discuss company operations. This was the beginning of a series of personnel innovative policies which helped the company to distinguish from its contemporaries. As the incentive management plan has been established,
The role of the board: unlocking the potential. (n.d.). (DRAFT). Retrieved December 8, 2013, from http://www.ey.com/US/en/Services/Strategic-Growth-Markets/Strategic-Growth-Forum-Agenda-EVTD-USDD-97KR7Z?CMPNID=SGF2013_US_Insights_Audit_Committee_Track1_Board_Recap
...maintain that advertising exists primarily to create demand among consumers. People have certain types of wants and needs, and they are perfectly capable to discover it for themselves. People today just need food, clothing and shelter everything else is superfluous and additional stuff. Advertising are able to create demand that would not exist just by manipulating people’s min and emotions. Advertising is master in manipulate reality and fantasy, by creating “magic show.” It is true that advertising has been a powerful mechanism that distorts our whole society’s values and priorities. On the other hand, advertising educate people about several issues. In political terms, it moves mass of people and persuade them to vote for a candidate. And, of course, in terms of economy, contributes in the development through the consumption of the costumer.