MGTS3301 Lecture Notes - Lecture 7: Arthur Andersen, Mci Inc., Insider Trading
Document Summary
Week 7 corporate governance (part 3: strategic actions strategy implementation) Corporate governance can destroy or create value for a firm. It is concerned with: strengthening the effectiveness of a company"s board of directors, verifying the transparency of a firm"s operations, enhancing accountability to shareholders. Incentivising executives: maximising value-creation for stakeholders and shareholders. Fundamentals: corporate directors should, focus on creating long-term value for shareholders, use performance-related pay to attract and retain senior management, exercise sound business judgement to evaluate opportunities and manage risk, communicate with key shareholders. Corporate governance is the set of mechanisms used to manage the relationships (and conflicting interests) among stakeholders and to determine and control the strategic direction and performance of organisations. Identifying ways to ensure that decisions are effective, and facilitate the achievement of strategic competitiveness. Ensuring that top-level managers interests are aligned with shareholders and other stakeholders interests. Current emphasis on corporate governance is due to:
