What does corporate governance mean? What is the role of the Board of Directors in a corporation? Based on research, give a real-world example of issues facing a board of directors. Supplemented with extra information on corporate governance and the role of the board of directors.© BrainMass Inc. brainmass.com March 4, 2021, 8:04 pm ad1c9bdddf
Please see attached response for active links, which is also presented below. I also attached two supporting resources for other considerations.
I am wondering if you have started your research yet.
Let's take a closer look at the three questions that can act as a tentative outline for your final copy through research from various sources and examples, which you can draw on for your final response. This approach keeps within the BrainMass policy for OTAs not to complete assignments or parts of assignments for students.
Your tentative outline might look something to the effect:
I. Introduction (e.g, introduce topic; include purpose statement: The purpose of this paper is to define corporate governance...).
II. What is Corporate Governance? (e.g., about 1/4- page)
III. Role of the Board of Directors (about 3/8 page)
a. Real life example
IV. Conclusion (e.g. sum up main points in about 2 or 3 sentences)
Now let's look at some information to consider for the above outline.
1. What does corporate governance mean?
The concept of "governance" is not new; it is as old as human civilization. Simply put "governance" means: the process of decision-making and the process by which decisions are implemented (or not implemented). Governance can be used in several contexts such as corporate governance, international governance, national governance and local governance. It is also used in the context of the Board of Directors (http://www.unescap.org/pdd/prs/ProjectActivities/Ongoing/gg/governance.asp).
"Corporate Governance is concerned with holding the balance between economic and social goals and between individual and communal goals. The corporate governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations and society" (Sir Adrian Cadbury in 'Global Corporate Governance Forum', World Bank, 2000)
Good governance has 8 major characteristics. It is participatory, consensus oriented, accountable, transparent, responsive, effective and efficient, equitable and inclusive and follows the rule of law. It assures that corruption is minimized, the views of minorities are taken into account and that the voices of the most vulnerable in society are heard in decision-making. It is also responsive to the present and future needs of society.
2. What is the role of the Board of Directors in a corporation?
A corporation, whether for-profit or nonprofit, is required to have a governing Board of Directors. To explain, a corporation can operate as a separate legal entity, much like a person in that it can own bank accounts, enter into contracts, etc. However, the laws governing corporations require that a corporation ultimately is accountable to its owners (stockholders in the case of for-profits and the public with nonprofits). That accountability is accomplished by requiring that each ...
This solution explains what is meant by corporate governance. Through an illustrative 'real-world" example, it also examines the role of the Board of Directors in a corporation.