When does a corporation need a board of directors?
Unit 2: Discussion
Post your initial response to the Discussion Questions by midnight on Thursday. Then by Sunday at midnight CST/CDT you must provide a substantive response to two or more classmates’ posts. Use the concepts learned from the text as well as from outside sources (at least two  are required) for compiling the response to each Discussion Question. Cite the sources used in the Discussion Question posting as well as in the peer responses IAW APA Format.
Important: Your grade for the responses you post in our Discussion Area will be determined not only by your responses to the assignment questions, but also by your responses to your fellow students’ postings. Be sure to reply to at least one posting for each Discussion Question. Otherwise, five points will be deducted from your grade.
- From Chapter 2: When does a corporation need a board of directors?
The roles and responsibilities of an active board of director is as follows:-
For an organisation board of directors are the person who performs all the major duties of an organisation to ensure that the organisation is taking the most accurate decision for a goven situation. They plan the strategic activities and also forsee the future events and plan accordingly. Because of this the most efficient person has to selected to the board members so they can provide solution even when there is risk or uncertainty in the events.
The duties that are performed by the board of directors are,
-Selection of the top level executives
– formulation of plans, policies and even the objectives and mission of the organisation
– preparing strategies and decision making
– designing the organisational structure
– provide information to the external public
– guide the top level managers by giving information and feedback
There is a strong relation between the composition of board of directors and the organisational performance as they are the key elements in a company that decides the major work to be done and also they plan, monitor and assess the performance of each employee. The composition of directors should be made in such a manner that it includes, internal, external directors and proprietary directors and those directors which are not part of these. So the composition should be made by including more internal directors and and also the age education etc will also the composition. So the board should be constituted by considering all these aspects and if it is positively combined it will have a good impact on the organisational performance.
- From Chapter 3: What is the relationship between corporate governance and social responsibility?
A customary view recommended an inconsistency amongst CSR and Corporate Governance. Corporate Governance was identified with benefit expansion and gave assurance to shareholders who have given cash-flow to firm, while CSR clearly was against benefit amplification since it recommended an arrangement of activities useful for outer partners that may not be useful for a shareholder. Be that as it may, not any longer. Corporate Governance is an umbrella term and CSR is slowly getting combined into the organization’s corporate administration hones. Their relationship can be deciphered by forsaking the standard perspective of the firm as a shareholder esteem maximizer and grasping the perspective of a firm as a partner esteem maximizer. This joining makes ready for Corporate Governance to be driven by moral standards and the requirement for responsibility, and it empowers CSR to adjust winning business hones. Today both Corporate Governance and CSR concentrate on moral practices in business and the responsiveness of an association to its partners and the earth in which it works.
Corporate Governance is guaranteeing that an association is keep running in a dependable way by guaranteeing responsibility, straightforwardness and consistence with due respect to its key partners. It is the entire arrangement of lawful, social, and institutional game plans that figure out what traded on an open market partnerships can do, who controls them, how that control is worked out, and how the dangers and comes back from the exercises they attempt are assigned. Corporate Social Responsibility (CSR) is corporate type of self-direction incorporated into the plan of action to make a positive effect on the partners and nature. CSR is an idea whereby organizations incorporate social and ecological worries in their business operations and in their collaborations with their partners on a willful premise organizations are likewise residents of the place where they are made. like different residents they have social obligations. in great corporate administration the administration ought to have the capacity to meet their social obligations. these incorporate ensuring that their items are not unsafe to individuals and to the earth sharing their benefits for the benefit of the group as a characteristic individual or person would do giving to social bring about sorting out exercises to profit the group. other great corporate administration hones that covered with social duty is conforming to appropriate laws, setting great work conditions for representatives giving great items to the group helping the economy through reasonable exchange works on paying charges and different commitments due the administration ensuring that it is meeting duties to different people normal and juridical alike. great corporate administration will likewise guarantee that the substance will proceed on a going concern presence so it will have the capacity to pay its representatives pay charges and give an arrival for stockholders.