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The Major Role of a Chief Executive Officer - Case Study Example

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The paper 'The Major Role of a Chief Executive Officer' presents the CEO and board of director which play a significant role in ensuring the growing concern of an organization is protected. The major role of a Chief Executive Officer is to lead in the development of the company’s strategies…
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The Major Role of a Chief Executive Officer
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Download file to see previous pages The duty of the Board of Directors is much related apart from the role of hiring the CEO. Essentially, the boards of directors are responsible for hiring directors of a company. In addition, it is the role of the directors to assess the strategies and the overall direction of the organization.
The bankruptcy of Enron is most associated with the failures CEO and board of directors’. It is the responsibility of the CEO to ensure that all expenditures within an organization are within the endorsed yearly budget. Additionally, it is the duty of the CEO to protect the interest of its shareholders by ensuring that the price of the company’s share does not reduce in value. Lay-Skilling Fastow leadership failed to protect the interest of the shareholders as the stock of share drastically reduced as well as EPS (Earning per Share). A decrease in the value of shares means that few investors will be interested in investing in the company and hence the company will struggle to raise adequate capital for its operation (Johnson, 2003, p. 45).
Organization culture is human behavior within an organization and the ability of individuals to attach to those behaviors. Organizational cultures signify the beliefs, principles, as well as corrective values of the members of the organization. Various cultures can be represented in an organization including values, norms, visions, systems, symptoms, assumptions, symbols, habits among others.
Organizational culture is critical to the success of organizations. Enron organizational cultures were based on communication, integrity, as well as excellence. The organization ensured that client, vendors among other individuals or organizations are reverently treated without any form of arrogance and callousness. Enron also if integrity is enforced in every business transacting that is within its jurisdiction. Integrity was enforced by openly conducting their business transacting without having any hidden mission. Additionally, the company has significantly emphasized on good communication and excellence. ...Download file to see next pagesRead More
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