...Topics, Issues, and Controversies in Corporate Governance and Leadership S T A N F O R D C L O S E R L OO K S E R I E S stanford closer look series 1 Tesla Motors: The Evolution of Governance From Inception to IPO Tesla Motors In June 2010, Tesla Motors raised over $225 million in an initial public offering that valued the electric car manufacturer at $2 billion. It was the first time a U.S. automobile company went public since Ford Motor in 1956. The evolution of Tesla—first incorporated in 2003 by engineers Martin Eberhard and Marc Tarpenning—in some ways has been unique, given the nature of its business. Unlike many venturebacked companies, Tesla requires significant physical capital and plant and equipment for growth. Almost all aspects of its operations—from concept design and development to mass production—are capital intensive. As a result, Tesla has had to seek multiple rounds of external financing since its inception. In addition, the company’s operations are highly complex. The development of an electric car requires expertise in battery technology, automobile design, manufacturing design, and supply chain management. Overseeing this level of complexity places significant demands on company leadership. Finally, the company is attempting to disrupt an established industry in which its competitors have considerable advantages in terms of size and position. And yet like most companies, both private and public, Tesla has also faced its share...
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...National Kidney Foundation (NKF) of Singapore INTRODUCTION “Power tends to corrupt and absolute power corrupts absolutely.” Lord Acton National Kidney Foundation (NKF) was established way back 1969 as part of the cell under the Singapore General Hospital due to the arising numbers of kidney related disease victims in Singapore. That cell not only responsible for treating the kidney patients but also taking up the challenges on research as well as educating the community on kidney disease. NKF has officially opened their first dialysis centre at the Kwong Wai Shiu Hospital in 1982 and throughout they have gone ups and down before emerge as a premier charity organisation in Singapore. By July 2005, Singaporean were shocked when the news of NKF scandal broke following the collapse of defamation trial. It is unexpected due to the fact the NKF has already recognise as a lead charity organisation with the revenue of $116 million. Lots of allegation were slandering around and the spot light goes to the then NKF CEO, Mr Thambirajah Tharmudurai or better known as T.T. Durai. The news not only rock the nation but also has attracting interest of global parties. The scandal has cause the CEO and his board of Directors to resign. Therefore, this case study is significant for the group to analyse the organizational leadership issues and challenges. AIM The aim of this study is to analyse the case of National Kidney Foundation scandal in the context...
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...your research term paper | |include (but are not limited to) the following: | |Ethics and Corporate Citizenship Themes | |Understandings of corporate citizenship | |Links between ethics and corporate citizenship | |Performance measurement | |Accountability and governance | |Stakeholder engagement, consultation, reporting and governance | |Corporations, territory and governance | |Globalization Themes | |Corporate power | |New technologies...
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...N Balasubramanian in his book "Corporate Governance and Stewardship: An Overview", raised and discussed few pertinent questions about Good governance and whether it matters to the corporations. He says it is required to be studied that whether good governance creates sustainable value to companies and shareholders, does it mitigate their vulnerability to business risk and whether investors and stakeholders do care to see that their corporate connections are well governed or not? To answer these questions he referred some of the prior studies and suggested that the academic evidence and opinion on the relationship of good governance and good performance are mixed. He identified three categories of research i.e., opinion based research, focus...
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...Development | 3. | HMPRBA 303 | Corporate Governance | 4. | HMPRBA 304 | Management of Public & Private Participation | 5. | HMPRBA 305 | Marketing Research | 6. | HMPRBA 306 | Financial Management | 7. | HMPRBA 307 | Operations & Supply Chain Management | 8. | HMPRBA 308 | Innovation Management | 9. | HMPRBA 309 | Current Business Affairs & Soft Skills | 10. | HMPRBA 310 | Minor Project (8 weeks) & Viva - Voce | HMPRBA-301: Strategic Management The objective of this course is to acquaint students with the concepts, methods and tools of strategic management and their application in industry. UNIT I: Strategic Management-Basic process of strategic management; Benefits and limitations of strategic management; Goals and objectives, Business Vision, Mission and Objectives. UNIT II: Environment and Resources Analysis: Environmental Analysis, Industry and Competitive Analysis, the External Factor Evaluation (EFE) Matrix, Competitive Profile Matrix (CPM), Internal Analysis; Internal Factor Evaluation (IFE) Matrix, Porter’s Five Forces Model, SWOT Analysis and VRIO framework. UNIT III: Strategy Formulation: Porters Value chain - Generic competitive strategies - Portfolio Analysis and its limitation - BCG matrix and GE matrix - Building competitive - advantage for a firm - Strategy versus tactics and making a Strategic Choice - ‘Blue Ocean Strategy’. UNIT IV: Strategy Implementation and Control: Corporate Strategy - Business Strategy...
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... |Reference to Concept in Reading | |Shift in Corporate Power |By appointing a board that is approved by the investor, this effective shift|“…But, in the last decade, and especially | |from CEO to Stakeholders |will occur. In today’s business environment the board plays an active role |in the past five years, boards of directors| | |in decisions as opposed to simply providing rubber stamps. |of large publicly traded corporations have | | | |begun to shed their passivity and | | | |dependence. The evolution of boards from | | | |managerial rubber- stamps to active and | | | |independent monitors has been in large part| | | |the result of efforts to address or avoid | | | |serious problems with corporate performance| | | ...
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...Third edition Chapter 6,7,8 and 11 (each chapter also contains two readings) Chapter 6 Corporate level strategy Firms have a lot of growth options, while staying within the boundaries of a single business or broaden their scope even further through venturing into other lines of business and becoming multi-business corporations. Vertical integration: when a firm enters other businesses upstream or downstream within its own industry column. It can strive for backward integration by getting involved in supplier businesses or it can initiate forward integration by entering the businesses of its buyers. Horizontal integration: if the firm integrate related businesses at the same tier in the industry column. (Horizontal) diversification: if a firm expands outside of its current industry. The issue of corporate configuration: the issue of deciding on the best array of businesses and relating them to one another. Determining this can be disentangled into two main questions: 1. What business should the corporation be active in? (corporate composition. 2. How should this group of business be managed? (corporate management). Corporate composition This can be divided into: - corporate scope (how many businesses) - corporate distribution (the relative size of the activities in each business are covered) A common way of depicting the corporate composition is to plot all of the businesses in a “portfolio matrix”. Portfolio: the set of...
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...to Baxter Healthcare Corporation in July 1987. The company was incorporated in 1966 and is based in Deerfield, Illinois. Baxter Healthcare Corporation operates as a subsidiary of Baxter International Inc. Baxter Healthcare Corporation In any organization profit and customer care go hand in hand to make a success of the endeavor. ... Baxter Healthcare Corporation is an example of a customer-focused manufacturing organization committed to meeting patient needs. As a global healthcare company operating in more than 100 countries, Baxter is committed to effective corporate governance, adherence to the law, and a culture of ethics and compliance throughout the organization. In 1995, Baxter became one of the first companies to adopt formal corporate governance guidelines. Enhancing the company’s practices and setting new standards is ongoing, and the company’s current corporate governance guidelines reflect this evolution. Baxter’s Ethics and Compliance team works closely with operating and legal teams based regionally in Baxter’s businesses to ensure that the company’s activities adhere to applicable laws and to company policies. The organization offers numerous channels to educate and counsel employees, as well as confidential avenues to raise questions or report alleged violations of law and company policy. It investigates these items promptly and reports to senior management as appropriate. Baxter’s Code of Conduct...
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...Corporate Governance of Commercial Banks in Bangladesh Introduction: The need for corporate governance arises from the potential conflicts of interest among stakeholders in the corporate structure. These conflicts of interest often arise from two main reasons. First, different stakeholders have different goals and preferences. Second, the stakeholders have imperfect information as to each others actions, knowledge, and preferences. Corporate governance (CG) is an important effort to ensure accountability and responsibility and is a set of principles, which should be incorporated into every part of the organization. Though it is viewed as a recent issue, there is, in fact, nothing new about the concept. Because it has been in existence as long as the corporation itself-as long as there has been large – scale trade, reflecting the need for responsibility in the handling money and the conduct of commercial activities. Numerous works, studies, and researches have been conducted to enact principles, codes, and guidelines for ensuring good corporate governance systems and culture within the organizations. Sir Adrian Cadbury in 'Global Corporate Governance Forum’ defined corporate governance as: "Corporate Governance is concerned with holding the balance between economic and social goals and between individual and communal goals. The corporate governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship...
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...GOVERN IT Topic and Motivation: Smart IT governance helps enterprises deal with complexity.IT governance is ‘the assignment of decision rights and the accountability framework to encourage desirable behavior in the use of IT’ (Weill, 2001; Broadbent & Weill, 1998) Defining desirable behaviors takes time, effort, focus, cost savings, innovation, growth, reuse, sharing. IT business value directly results from effective IT governance. Firms with superior IT governance have at least 20% higher profits (ROA) than firms with poor governance given the same strategic objectives. • Characteristics of High IT Governance Performers - More focused strategies • Greater differentiation between customer intimacy, product innovation, or operational excellence - Clearer business objectives for IT investment • Greater differentiation between supporting new ways of doing business, improving flexibility, or facilitating customer communication - High level executive participation in IT governance • Greater involvement, impact of CEO, COO, Business Heads, Business Unit CIOs and CFO • Who could accurately describe IT governance arrangements - Well functioning formal exception processes - Formal communication methods Research Questions: Who has decision rights and inputs? How can IT governance arrangements can be represented? Approach: • Plan it, work it! - Game plan, self-assessment, project plan • Establish IT Governance Principles based on overall IT strategy • Evaluate...
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...The Rise and Evolution of the Chief Risk Officer: Enterprise Risk Management at Hydro One by Tom Aabo, Aarhus School of Business, John R. S. Fraser, Hydro One, Inc., and Betty J. Simkins, Oklahoma State University T he Chinese symbols for risk shown above capture a key aspect of enterprise risk management. The first symbol represents “danger” and the second “opportunity.” Taken together, they suggest that risk is a strategic combination of vulnerability and opportunity. Viewed in this light, enterprise risk management represents a tool for managing risk in a way that enables the corporation to take advantage of valueenhancing opportunities. A missed strategic opportunity can result in a greater loss of (potential) value than an unfortunate incident or adverse change in prices or markets. As in the past, many organizations continue to address risk in “silos,” with the management of insurance, foreign exchange risk, operational risk, credit risk, and commodity risks each conducted as narrowly focused and fragmented activities. Under the new enterprise risk management (ERM) approach, all would function as parts of an integrated, strategic, and enterprise-wide system.1 And while risk management is coordinated with senior-level oversight, employees at all levels of the organization are encouraged to view risk management as an integral and ongoing part of their jobs. While there are theoretical arguments for corporate risk management,2 the main drivers for...
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...Corporate Governance * Corporate governance broadly refers to the mechanisms, processes and relations by which corporations are controlled and directed. * Corporate governance is the system of principles, policies, procedures, and clearly defined responsibilities and accountabilities used by stakeholders to overcome the conflicts of interest inherent in the corporate form. * Corporate governance is concerned primarily with protecting weak and widely dispersed shareholders against self-interested Directors and Managers. Shareholders and Stakeholders: Shareholders are stakeholders in a corporation, but stakeholders are not always shareholders. A shareholder owns part of a company through stock ownership, while a stakeholder is interested in the performance of a company for reasons other than just stock appreciation. Stakeholder for example employees, suppliers, customers… Directors: Guardians of the company’s assets for the shareholders. The boards of directors are an intermediary between the shareholders and management, and represent shareholders’ interests by: monitoring managers, approving strategies and policies. Managers: who use the company’s asset. Managers may be more interested in expanding the size of the business, bonuses based on earnings, taking on excessive risks, or job security. The objectives of a corporate governance system are (1) to eliminate or mitigate conflicts of interest among stakeholders, particularly between managers and shareholders...
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...Setting the pace and getting started in NGO Corporate governance. An Assessment of corporate governance for Non Governmental Organizations in Zimbabwe By Lasford Flackson lasyflackson@gmail.com .Tel:+263773931949 Table of contents Introduction Chapter one An overview of corporate governance The evolution of governance Development of corporate governance Approaches to corporate governance Chapter two Adaptation and adoption of corporate governance Ngo sector in Zimbabwe Requirements for NGO operation in Zimbabwe Guiding principles for good corporate governance Chapter three Conclusion and Recommendations 2 Introduction The collective problem of business today is increasingly attributed to the failure of corporate governance. This means that far too many boards are failing to execute their duties responsibly, both collectively and individually. Despite increasing awareness, there is a general lack of understanding of the principles of effective corporate governance in most quarters. The study sought to assess corporate governance issues and challenges for non governmental organisations. The study takes a point of departure in explaining how non governmental organisations can adapt and adopt effective corporate governance practices viz- a- viz, how NGOs can adapt and adopt to corporate governance. Several non governmental organisations do not observe good corporate governance and this to the collapse of many. There are no set rules ...
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...Introduction The history of business ethics is as old as the religious books like the Bible and the holy Quran. These religious books have talked about truthfulness, transparency and honesty among people. The prohibition of theft, self-interest at the cost of others, and malice in these religious sources have a direct application the world of business. The history of business ethics has evolved during the long course of time and is still in this phase of development. The application of business ethics varies in different context. There have been radical changes in the world of business which has evolved the business ethics to its current form. And with continuously changing business world we can presume that in the future business ethics will undergo more changes. It will evolve continuously. The business ethics has an immense scope touching every human living in the society. The affects the daily decision making in the society, irrespective of whether it is a big decision affecting large masses or small decision affecting just one person. Business ethics can be looked at by different perspectives. One perspective is that of organization point of view which concerns about the things that an organization should do. While the other perspective is the things that must really be done irrespective of an organization. The latter one gauges the different aspects of an organization. The literary evidence for the history and development of modern era business ethics can be traced back...
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...Corporate Governance (Responsible Investment) Submitted To: Aleem Afzal Submitted By: Syed Izhar (FA09-MBA-146) COMSATS Institute of Information Technology, Lahore. Corporate Governance and Responsible Investment: Corporate government is not a new idea. There is not much new about basic idea of corporate governance except the phrase ‘Corporate Governance’. Corporate entities always need governing. Corporate governance is necessary when ownership or membership is separated from management control. Beginning of the modern concept in ‘Corporate Governance’ was in 19th century. In 19th century there were two ways in which business was performed; • Sole proprietorship • Partnerships But if business fails creditors will take all your the assets even the house. In other words business man had an unlimited liability. And unfortunately you could be sent to prison. That was not a good incentive for businesses. Why would any one risk his/her life as well as life of the family for a business? Fortunately industrial revolution was knocking at the door, business opportunities were opening up. Investment was needed in many sectors but people were scared of investing in their own businesses because of the danger that if their business fails to perform they could be left with nothing, and even...
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