CORPORATE GOVERNANCE IN GENERAL ELECTRIC

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Recommended: What is the vision and mission statement of a particular company or organization

GENERAL ELECTRIC

GE is an American national conglomerate corporation started in Schenectady, Newyork with its headquarters in the Fairfield, Connecticut, United States. The company has got 11 operating units which are to be considered as main from technology to services. They had their vision as “we bring good things to life” and there mission is “passionate, curious, resourceful, accountable, teamwork, committed, open, energizing, always with unyielding integrity”. To bring these big ideas that is there vision and mission to life requires not only a strong culture, but also a clear strategy.GE strategy has 4 points in which it clearly indicates their strategy:

• “Be Global”, maintaining a strong local presence in and around the world.

• “Drive Innovation” is to focus on R&D and leadership in technology and science.

• “Build Relationships” signifies to continually build their relations with customers and partners around the world (because we can’t survive alone).

• Need to “Leverage Strengths”, which means using everything that is there size, expertise, financial capability, as well as the brand.

The organization structure as on February 2011 is as shown below:

A set of governing principles that is shown below are been approved by the board of directors, their audits and key practices of board of directors based on which the frame work for GE was set as governance principles. They also decided to review the frame work on an annual basis and more often if it’s necessary.

Role, functions and qualification of board and management

Business is been directed by its employees, managers and officers, with the supervision of CEO. The supervision is been done in order to improve the company mission for the benefit of sharehol...

... middle of paper ...

...d in the form 8-k that is been filed with SEC.

IMPACT ON COMPENSATION FROM THE EXCECUTIVE MISCONDUCT

If the board finds that an executive officer is involved in conduct ill fare to company then the board takes measures on their conduct in such a way to prevent its reoccurrence. Actions are taken based on the situation of the misconduct in some cases even termination could be taken as an action. If there are issues regarding the manipulation of financial data which leads to fraudulence then they seek their reimbursement. They would be provided with additional remedies which are not against the lieu any these are been imposed by the law enforcement agencies or any other authority.

OMBUDSPERSON PROCESS – INVESTIGATION RESULTS

Policy 2007 2008 2009 2010 2011 2012

Concerned reports 1596 1672 1641 1706 2203 2752

Disciplinary actions 343 420 420 363 516 786

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