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Corporate Governance and Strategic Leadership

1 - Describe the impact internal corporate governance has on top-level management's strategic decision making.

2 - Discuss checks and balances of the three corporate internal governance mechanisms. How effective are these checks and balances?

3 - Discuss the relationship between organizational structure and organizational controls. Are they always interrelated? What will happen to a company's competitive advantage if one or the other isn't in place?

4 - Describe the attributes of an effective strategic leader and the value that person brings to the strategic management process.

Solution Preview

1. The internal corporate governance sets the goals for the organization. The top management develops strategies to achieve those goals. The top management makes strategic decisions that help achieve the goals. Internal corporate governance defines the relationship among the company's management, its board and other stakeholders. The internal corporate governance monitors the actions of the management, and directors. This helps reduce agency risks. For example, if one of the goals of a corporation is to earn a fair return on shareholders' capital, the strategic decision making will be influenced by this goal and will strive to earn a fair return on shareholders' capital.

2. The three corporate governance mechanisms are the board of directors, the audits of the business /financial operations, and the balance of power in the organization. The board has the main duty of protecting the interest of the shareholders. It must review company management and seek to improve the financial performance. The most important audit is the financial audit. It ensures that the business follows the accounting standards, and other regulations of ...

Solution Summary

The role of leadership in implementing corporate ethics is explained in a structured manner in this response. The answer includes references used.