MGMT 1040 Chapter Notes -Takeover, Insider Trading, Good Governance

• School: York University
• Department: Management
• Course: MGMT 1040
• Professor: William(bill) Woof

Document Summary

Legitimation is a dynamic process by which business seeks to perpetuate its existence. Legitimacy has to be considered at both the micro and macro level: at micro level- business achieving and maintaining legitimacy by conforming to societal expectations. In comparing both the levels, it is clear that, although specific organizations try to perpetuate their own legitimacy, the corporate system as a whole rarely addresses the issue at all. This is bad because powerful issues regarding business conduct clearly indicate that such institutional introspection is necessary if business is to survive and prosper. Purpose of corporate governance: governance comes from the greek work steering". Role of four major groups: overarching the groups is a charter issued by the state. Giving the corporation the right to exist and stipulating the basic terms of its existence: shareholders are the owners of the corporation. They exercise this control be selecting the board of directors of the company.