Corporate Governance: Corporate Social Responsibility
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
…show more content…
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
…show more content…
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
Cummins Inc.: Board Of Chairman And CEO
1292 Words | 6 PagesBoard of Directors There are 8 members on the Cummins Inc. Board of Directors. There are 7 outsiders and 1 insider on the board. The only insider is N. Thomas Linebarger. Linebarger is the current Chairman and CEO of Cummins Inc.
Qantas Governance Framework Analysis
774 Words | 4 PagesQantas has a board comprised of eight independent directors as well as the CEO. In addition, there is the existence of several review committees to manage the size and scope of the businesses operations. This emphasis on outside directors predisposes it to a heavy conformance emphasis as the nature of the outside directors dictates they would have limited ability to be active in operational issues, placing a greater emphasis on the abilities of the CEO. The introduction of additional executive directors could afford Qantas with enhanced operational decision making abilities moving
Essay On Conflict Of Interest
1082 Words | 5 PagesAs much as company managers face a lot of burden in their works, it is better to get along with some of the issues that we might face along that might hinder the success capability. First, precise decision making which via voting to ascertain on matters pertaining the company, this is much better as an individual is not the one that makes decision on behalf of the whole organization, he voting are acquired after shares are divided such that each share is a one count vote. Secondly, there is unbiased structure as CEO’s and managers cannot make decision for their own self-gain but for the company, (Michael &Andrew, 2001). This means that the top level managers and the executives are not basically the owners as they are differentiated from those who own the company’s daily operation from stock
Dick Smith Failure Case Study
1023 Words | 5 PagesThe Failure of Dick Smith Electronics Identify: How the latest edition (3rd) of the ASX Corporate Governance Principles plausibly halts the failure of Dick Smith Electronics (DSE) will be discussed in this essay. I argue that 3rd of ASX Corporate Governance Principles might not be the best corporate governance practices for the listed entities in Australia. As can be seen from the DSE case, it complied with the majority of the principles and recommendations, but the DSE’s collapse still happened. Therefore, the better application of this practices should be developed.
Power In John Steinbeck's The Grapes Of Wrath
1049 Words | 5 PagesWhy does a board of directors have a chairperson? Each of these groups is founded on the principle that each member gets a vote and power is distributed. But in order to accomplish decisions and missions, these groups succeed when they have strong leaders. Not leaders who silence the members and assume all power - rather, leaders who direct, motivate and inspire the members to work harder. To progress, a community needs clear guidance from an effective leader who can be replaced if necessary.
Nd Clothing Case Summary
304 Words | 2 PagesWe recommend that a mutually acceptable third-party board member be appointed, which will provide a non-biased perspective on the business. (a) Best practice recommends that most NEDs are independent, that is, a director should be independent of management and free from any business or other relationship which could materially interfere or reasonably be perceived to materially interfere with the exercise of their judgment. We refer to the relationship between Tammy Click and Teresa Brick. 3.6 Should Click Clothing proceed with its proposed board structure and composition, it will need to set out in its annual CGS in relation to its compliance with the ASX Principles and Recommendations, and those matters of corporate governance where its practice departs from the ASX Principles and Recommendations, to the extent that they are currently applicable to the
Target Corporation Social Responsibility Case Study
1104 Words | 5 PagesTarget Corporation needs to buy more local and diverse product from an environmentally friendly company and create a standard that adds value to the local communities and environment. In addition, Target Corporation should source products from diverse international community, minority organization, and women run organizations. Target Corporation must diversify its retail products to add more goods that are sporting, a bakery, and household's items as well educational services using partner organizations. Target Corporation needs to identify new third-party strategic alliances through which it delivers goods at the doorsteps, selecting with a non-perishable item and eventually perishable items depending on the locations. Target Corporation
Northrop Grumman's Business Ethics: Case Study
1528 Words | 7 PagesIntroduction In this extended essay, I will try to answer the research question “To what extent is Corporate Social Responsibility part of Arm Makers Companies? An assessment and evaluation of Raytheon’s and Northrop Grumman’s Business ethics”. Weapon companies face the issue of being socially responsible as it is a global matter. I will be mainly focusing on two companies; Raytheon and Northrop Grumman.
Pros And Cons Of Executive Compensation
2411 Words | 10 PagesEXECUTIVE COMPENSATION Executive compensation is a broad term which comprises of financial compensation and non-financial rewards given to an executive from their firm for their services. This package is decided by a company’s Board of Directors (consisting of independent directors). It should be designed in a manner which incentivizes the executives and motivates them to perform in accordance with the company’s goals and its long term growth. These packages generally include a mix of short-term incentives (including salary, annual bonus, benefits, and perquisites) and long-term incentives (including stock options and restricted shares). E.g. Microsoft CEO Satya Nadella received a compensation package of $84.3 million for the software maker’s
P & G Revenue Recognition Essay
814 Words | 4 PagesIntroduction The intent of FASB with ASC 605- Revenue Recognition, was to level the playing field for businesses by requiring the recognizing and reporting of revenue on a consistent basis by industry. This would attempt to discourage material misstatements in financial reporting for revenues. Properly recording revenue when earned is a critical process within any organization. Revenue being a key metrics used to analyze operations and award incentives to employees, to include CEO’s.
Volkswagen's Corporate Social Responsibility
1858 Words | 8 PagesIt is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which states that a firm can never exist In a vacuum (Khalidah et. al.).
Nortel
846 Words | 4 Pagessuggests that if the board member’s actions were in line with the company’s top CEO’s than what they were doing was obviously right. They figured if there actions were not in accordance with the CEO’s than they would be told they were wrong and needed to change what they were doing. In the case of Nortel’s board they were never questioned by any of the companies shareholders on their ethical intuition and thus they collected a paycheck for not properly identifying the wrong doings of individuals within the company. When it comes to the meltdown Nortel faced it was a very common site among other companies such as Enron and WorldCom, the one question that needs to be asked is why companies continue to make these poor decisions after seeing
Corporate Social Responsibility: Profit-Oriented Or Socially Responsible?
3408 Words | 14 PagesProfit-Oriented or Socially Responsible? 2 Corporate Social Responsibility (CSR) plays a crucial role in organizations and societies. Traditionally, CSR is a management concept that has been implemented by most of the listed companies around the world. CSR is implemented by companies to be responsible for the company’s consequences on the environment and social welfare in their business operations and interactions with their stakeholders (Unido, n.d). In the other words, CSR is a program that benefits both society and business that do not provide immediate financial benefit to the company but environmental change and positive social (Investopedia,
Marico Board Independence
756 Words | 4 PagesA common question raised by many industry observers is – What constitutes a good board. There are many indicators to a good board – Members meeting regularly for meetings, good Audit committees, an established code of ethics and many more. But even while having such conventional roles of boards, procedures and following mandates by law a lot of companies failed. The list of such companies is long – Enron, Adelphia, WorldCom.
Role Of Corporate Governance In Nestle
1346 Words | 6 PagesA system to check and balances the benefit of all the board of directors and to avoid some of top management from making decisions that only benefit themselves is created and named corporate governance. Corporate governance means the system of rules, practices and processes by which a company is directed and controlled. The set of rules provided as a guidelines for the board of directors to make sure that accountability and fairness in a company’s relationship with its stakeholders such as financiers, customers, management, employees, shareholders and also society in order to achieve company’s goals and targets in a manner that add a value to the company. All of the stakeholders play an important role in corporate governance to ensure that
More about Corporate Governance: Corporate Social Responsibility
Cummins Inc.: Board Of Chairman And CEO
1292 Words | 6 PagesQantas Governance Framework Analysis
774 Words | 4 PagesEssay On Conflict Of Interest
1082 Words | 5 PagesDick Smith Failure Case Study
1023 Words | 5 PagesPower In John Steinbeck's The Grapes Of Wrath
1049 Words | 5 PagesNd Clothing Case Summary
304 Words | 2 PagesTarget Corporation Social Responsibility Case Study
1104 Words | 5 PagesNorthrop Grumman's Business Ethics: Case Study
1528 Words | 7 PagesPros And Cons Of Executive Compensation
2411 Words | 10 PagesP & G Revenue Recognition Essay
814 Words | 4 PagesVolkswagen's Corporate Social Responsibility
1858 Words | 8 PagesNortel
846 Words | 4 PagesCorporate Social Responsibility: Profit-Oriented Or Socially Responsible?
3408 Words | 14 PagesMarico Board Independence
756 Words | 4 PagesRole Of Corporate Governance In Nestle
1346 Words | 6 Pages