Effective Corporate Governance- Developing an Effective Board or Governance Team Academic Book - Essay Example

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Corporate governance is a system of authoritative direction or government which includes the specific role and responsibilities of the owners or the shareholders, the board of directors, and the Chief Executive Officer (CEO). (Colley, Stettinius and Doyle)
Basically, this…
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Total Number of Words: 796 “Effective Corporate Governance – Developing an Effective Board orGovernance Team Academic Book”
Part I – Recommended Four Chapter Titles for an Academic Book
Chapter I – Importance of Effective Corporate Governance
Corporate governance is a system of authoritative direction or government which includes the specific role and responsibilities of the owners or the shareholders, the board of directors, and the Chief Executive Officer (CEO). (Colley, Stettinius and Doyle)
Basically, this chapter aims to provide the readers with concrete idea on why each company needs to implement effective corporate governance. As part of this chapter, the book writer may consider providing some real life example of benefits and consequences behind effective corporate governance. A good example of business consequences of not having good corporate governance is the case of Worldcom and Enron.
Chapter II – The Members of the Board of Directors
To enable the readers to have a better understanding of “effective corporate
governance”, the readers need to know who the members of the board of directors are including how these people are different from the executive members of a corporation (Daily and Schwenk; Pound, p. 94). Basically, making the target audiences know who we are referring to as the members of the board of directors will make it easier for them to understand internal and external factors that contributes to effective corporate governance. (Kindly insert an organizational chart in this chapter)
Chapter III – The Role and Responsibility of the Board of Directors and Executives of a Corporation
After discussing the members of the top management in Chapter II, this chapter will focus of discussing the role and responsibilities of each members of the board. As part of discussing the role and responsibilities of the board of directors and executives of a corporation, highlighting some possible case scenarios may help the readers have a better understanding of effective corporate governance.
The book writer will discuss the role of executive and non-executive directors in terms of making the business objectives work for the best interests of the company. (Mallin, p. 125) For example: Since the best way for executive and non-executive directors to perform their duty effectively is to have an access to the company’s business information (Waldo, p. 5), the board of directors should not only carefully analyze the corporate financial report but also meet the team members regularly to discuss the proposed strategic plans and issues that will significantly affect the success of the business (Solomon, p. 103).
Chapter IV – Recommended Strategies behind the Implementation of Effective Corporate Governance
This chapter will discuss the following: (1) importance of corporate leadership among the members of the top management; (2) importance of having a third party check for any signs of unusual business practices in the financial statement; (3) importance of establishing an organizational culture that give priority to teamwork as well as ethical, fair and legal business practices (i.e. employing external auditor); (4) importance of appraising the performance board members (Conger, Finegold and Lawler); and (5) making the board members and executive directors accountable for unethical and illegal business practices (Donaldson; Goodstein and Boeker; Lorsch; Romano).
Part II – Experience with Corporate Governance – Strategy Implementation Issues
The problem with implementing strategies that could promote corporate governance is related to resistance-to-change among the employees. In order to make the implementation of these strategies successful, the top management needs to focus on the following: (1) importance of leadership; (2) establishing a new organizational vision and mission; and (3) the importance of being perseverance in the implementation of the new organizational plan.
Executive leaders who are responsible in making the organizational change plan successful should know exactly the type of leadership that is more effective with the kind of plan he / she is planning to implement. (Dalton, Daily and Ellstrand) Using the right type of leadership style would help in making the new strategic plan effective and efficient.
It is equally important for the company to have a new vision and mission as well as a company goal since it will enable the entire workforce to focus towards a single direction. Likewise, it is also essential for organizational culture to be aligned with the plan to implement strategic moves that could promote corporate governance. This proposed solution is effective since the values and convictions of each employee are rooted within the organisation’s culture aside from their individual attitudes (Krkpatrick and Ackroyd).
Prior to implementing the plan for an organizational change, the managers should wholeheartedly be determined in making the implementation of the new plan successful (Senge). In order to lessen the resistance to change within the organization, the managers need to carefully study the reasons behind the resistance to change by opening a good communication line with the team members. This will enable the change leaders to develop an effective strategy to enable the members of the team to participate with the new plan.
*** End ***
References for Part I
Colley, John L., et al. What is Corporate Governance? McGraw-Hill Companies, 2005.
Conger, Jay.A., David Finegold and Edward.E. Lawler. "Appraising boardroom performance." Harvard Business Review (1998): Vol 76, No. 1, p. 136 - 148.
Daily, Catherine M. and Charles Schwenk. "Chief executive officers, top management teams, and boards of directors: Congruent or countervailing forces?" Journal of Management (1996): Vol. 22, No. 2, pp. 185 - 208 .
Donaldson, Gordon. "New Tool for Boards: The Strategic Audit." 1995.
Goodstein, Jerry. and Warren Boeker. "Turbulence at the top: a new perspective on governance structure changes and strategic change." Academy of Management Journal (1991): Vol. 34, No. 2, pp. 306 - 330.
Lorsch, Jay W. "Harvard Business Review." January - February 1995. Empowering the Board. How do boards draw the line between monitoring performance and managing the company? 1 August 2009 .
Mallin, Chris A. Corporate Governance. Second Edition. Oxford, 2007.
Pound, John. "The promise of the governed corporation." 1995.
Romano, Roberta. "Corporate Law and Corporate Governance." Industrial and Corporate Change (1996): Vol. 5, No. 2, pp. 277 - 340.
Solomon, Jill. Corporate Governance and Accountability. 2nd Ed. John Wiley & Sons, Ltd., 2007.
Waldo, C.N. Board of Directors: Their Changing Roles, Structure, and Information Needs. Quorum Books, 1985.

References for Part II
Dalton, Dan R., et al. "Meta-analytic reviews of board composition, leadership structure, and financial performance." Strategic Management Journal (1998): Vol. 19, No. 3, pp. 269 - 290.
Krkpatrick, I. and S. Ackroyd. "Transforming the Archetype? The New Managerialism in Social Services." Public Management Review (2000): Vol. 5, No. 4, pp. 516 - 521.
Senge, Peter M. "The Art and Practice of the Learning Organization’ in ‘The New Paradigm in Business: Emerging Strategies for Leadership and Organizational Change’ (eds.) Ray, M. and Rinzler, A. (1993) World Business Academy. pp. 123 – 138. New York: Jeremy P. Tarcher." (1990). Read More
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