Corporate Governance - sept 27

Corporate Governance - sept 27 - Corporate Governance...

Info icon This preview shows pages 1–2. Sign up to view the full content.

Corporate Governance Governance -themes: How to organize steers itself (values, rules, processes, impact, accountability/responsibility) - although this treatment of governance will be at the level of the corporation, it is important in all forms of institutions (businesses, government, civil society) -governing system Corporate governance -the processes, structures, and relationships through which the shareholders, as represented by a board of directors, oversee the activities of the business enterprise According to the OECD, governance -concerns the rights and responsibilities of a company’s management, its board, shareholders, and various stakeholders ***Three key players in corporate governance Shareholders - the owners of the corporation -interested in return on investment -usually responsible for electing board of directors Board of directors -responsible for governance -set long-term objectives -elected by shareholders to represent shareholder interests -fiduciary duty – look at Directors’ fiduciary duties
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Officers-Senior employees that oversee daily operations-president-chief operating officer-members of the senior management team Directors’ fiduciary duties-To make decisions in the best interest of the company (which may not always be in the best interest of the shareholder)-consider other stakeholders-equal consideration to all shareholders-no personal profits at company expense-declare conflicts of interest Governance failures-Examples: Enron, WorldCom, Tyco-adversely affect many parties, both direct and indirect (shareholders, employees, suppliers, pension funds, communities, government, civil society) Principles of good governance (OECD)-ensure the basis for an effective corporate governance framework-understand the rights of shareholders and key ownership functions-provide equitable treatment of shareholders-appreciate role of stakeholders in corporate governance-ensure disclosure and transparency-outline clearly the responsibilities of the board...
View Full Document

  • Fall '10
  • MatArchibald
  • Management, Corporation, corporate governance GOVERNANCE, system Corporate governance, corporate governance Shareholders

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern