Discussion Question 1_02
http://www.investorwords.com/4616/social_responsibility.html Describe at least six recommendations that you would make to improve the effectiveness of today’s boards of directors. 1
I would require the board of directors degree of involvement in strategic management be active participation (approves, questions and makes final decisions on mission, strategy, policies and objectives) or be that of a catalyst (takes the leading role in establishing and modifying the mission, objectives, strategies and policies). This would ensure that the board of directors takes a hands on approach (Wheelen, p. 47). 2
I would require the board of directors to set corporate strategy, overall direction, mission or vision for the company. This needs to come from the board of directors. They need to set the standard. 3
I would make the board of directors responsible for the hiring and firing of the CEO and top management. This is an important role and must be mandated from the board of directors. Keeping the right CEO in position and keeping top management in place is extremely important (Wheelen, p. 45). 4
I would make the board of directors responsible for controlling, monitoring, or supervising top management (Wheelen, p. 45). The guidance that the board of directors provides is much needed and top management will follow the boards lead. 5
Corporations inside the United States usually have 2 insiders and 8 outsiders that make up the board of directors (Wheelen, p. 48). I would have at least 5 insiders and 5 outsiders make up the board of directors. This would make the makeup of the board of directors more even. 6
Of the 5 insiders, I would allow 2 of them to be company employees that sit on the board of directors. These employees can bring an inside look at what is happening from the employees point of view to the board.
Of these six suggestions, I would select number 1 as the most important. I would...
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