Corporate Governance: Corporate Social Responsibility

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4.1. Introduction
The aim of this chapter is to present the corporate social responsibility and how the organisation is governed in Meggitt PLC along with its competitors. This chapter presents a theoretical outline on the roles of the governance in the organisation and the corporate social responsibility. Following this, the research recognises various inferences and pertinence to Meggitt PLC and its competitors (Airbus and BAE Systems PLC).
4.2. Governance
4.2.1. Implications of Corporate Governance
The methods used for directing and controlling companies are referred to as corporate governance. OECD (1999) signifies the role of corporate governance as the relationship structure along with the associated responsibilities of the board members
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Multiple factors are promoted by these guidelines such as transparency in communication with investors, clear appointment process, performance related awards for CEO, promoting board performance evaluation, establishing board committees and independent audit committees, balancing competencies and director skills, ensuring optimal size of the board, ensuring that independent or non-executive directors are included in the board, and separating the role of CEO and the Chairman.
4.2.3. Examination of Corporate Governance Effectiveness at Meggitt PLC
Some significant factors related to corporate governance and its contribution to performance have been identified in the current literature. Explanations for some of these factors have been provided in terms of Meggitt PLC and its competitors.
4.2.3.1. Size of the Board
Wintoki et al. (2012), contend that larger boards are better able to monitor managers and mitigate the occurrence of management errors. According to Hilb (2012), in the UK, the average size of the board in the majority of the companies is around
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On a common note, the board size indicates better control over the company and its performance. From the above data, it is observed that Meggitt PLC has lesser board size than Airbus and equal board size when compared to BAE Systems PLC, which implies that Airbus management has a better control over the organisation. However, the accurate indicator of effective corporate governance is board independence which is discussed in the following

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