Duties of corp governance, management homework help

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Post 1 For leaders, being responsible for corporate governance, compliance and regulatory issues can be a fulltime job in itself. Throw in, along with those duties, balancing the needs of stakeholders and managing the demands of the marketplace and you have one labor intensive job. Good leaders can balance all of these duties while remaining compliant but there are some who let compliance take a backseat to profits. This group of individuals is the reason for practices like the “carrot and stick” which “…enable workforces and leaders to be productive and law-abiding” (Weiss, 2014). Corporate governance is most efficient when the Board of Directors operate independently from the leaders of the company. When the two groups become too close or intermingled, objectivity and oversight suffer. This is when we see issues of non-compliance and a lack of control, like that of the banking industry in the 2008 collapse. A strong corporate governance will be a positive factor for stakeholders as they can trust that the corporation has their best interests in mind. They do not have to worry about non-compliance, ethical issues or any other problems that could adversely affect their investment or position. When corporate governance allows for the separation of leaders and board members, the leaders can effectively manage the demands of the market while the board runs the compliance side of things. The best way to manage compliance and regulatory issues is to have specific policies and guidelines in place. An example of this is the “stick and carrot” approach. The “stick” is the important piece as that is where the “legal compliance and potential disciplinary action” come in to place (Weiss, 2014). It is important for leaders to communicate clearly what the disciplinary action is for any non-compliance. Equally important is acting on this disciplinary action when the situation arises. When issues occur, leaders need to address the “…infractions properly and timely, rather than letting them grow into bigger issues” (Massad, 2005). If disciplinary action is not clear or used when necessary, there will be no deterrent for unethical and non-compliant behavior. When a leader has the “stick” properly in place, their only responsibility should be enforcing it. This makes it easier for the leader to focus on stakeholder needs and competitive demands. When a leader is able to spend their time focusing on the demands of the marketplace, the stakeholders all benefits. The best way to maximize benefit to the stakeholders is to reduce the amount of time that leaders have to spend on corporate governance, compliance and regulatory issues. This is not to say that these issues are not as important as profits but rather they need to be minimized. If leaders can properly install the “stick”, rules and guidelines for discipline, they should be able to worry less about compliance and more about stakeholders. Massad, M. (2005, June 22). When and How to Discipline Employees. Retrieved April 26, 2017, from https://www.entrepreneur.com/article/78508 Weiss, J. W. (2014). Business ethics: a stakeholder and issues management approach. Retrieved April 12, 2017. Post 2 As leaders run businesses, there are many different things that need to be taken into consideration with every decision they make. The ability to cover the needs of all parties involved is growing more difficult every day. To be able to stay in compliance with different issues while contemplating corporate governance is very tough. “Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community. Since corporate governance also provides the framework for attaining a company's objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure” (Investopedia, 2015). When considering the different stakeholders and what they are looking for compared to demands of the marketplace and staying compliant under rules and regulations, each decision needs to be made very carefully, and at the end of the day the leader needs to realize that not everyone is going to be happy 100% of the time. Depending on the product, the customer can be easy to satisfy if you are able to keep pricing as is and keep the same level of integrity with your product. The government’s rules are mandatory so those need to be a very high priority. If those are not followed, you may be fined which would limit the ability to pay financers and keep costs down. The best way to make sure all parties are happy is to set expectations with everyone and set clear and concise goals with your employees. These goals need to be hit and they need to be done right. Creating a good internal infrastructure will allow the internal workings of the company to function properly and pending any economic issues, everything should run smoothly from there. Investopedia. (2015, January 09). Corporate Governance. Retrieved April 27, 2017, from http://www.investopedia.com/terms/c/corporategovernance.asp
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RESPONSE TO STUDENT POST
Response to Post 1

Balancing corporate governance, regulatory issues and compliance is one of the
overarching steps to business success. As you have mentioned, managing compliance regulatory
issues and corporate governance may be a huge task for the organizational leadership.
Organizations are established to maximize the shareholders interest; this should be done in a
manner that is in line with all the regulatory issues and compliance. The company’s board of
directors should take full responsibility in addressing the co...


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