MGMT 4350 Chapter Notes - Chapter 2: Good Governance, S&P 500 Index, Institutional Shareholder Services
20 Sep 2017
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Corporate governance: the relationship among these groups in determining the direction and performance of the corporation: public is becoming more critical about the competencies of board members. In a legal sense : board must direct the a airs of the corp, not manage them. Due care: obligation of board members to closely monitor and evaluate top management: if a board member fails to do this, they are liable for any harm caused to the corporation, because of this, liability insurance is o ered. Role of the board in strategic management: monitor, look at developments inside and outside the corp, bring attention to those overlooked, this is the bare minimum a board should do. Monday, september 18, 2017: evaluate and in uence, examine management"s proposals, decision and action, agree or disagree with them, give advice and o er suggestions, outline alternatives, more active boards do this plus monitoring.
