Corporate Governance is a term that broadly defines a business organization laws, rules, or process by which the company operates. Majority of business companies has been under the belief that organizations are to excel in profits. According to Bethel (2012),” Many of the obligations to stakeholder interest have been institutionalized in legislation that provides incentives for responsible conduct.” It was stated, that General Motors, and Chrysler failed to understand customer needs, employee reactions to downsizing, and government regulatory issues. As an end result the companies to meet the goals set by shareholders.
Today, vast organizations are transitioning more towards what is known as balance stakeholder models that in long term …show more content…
Many business organizations usually have a group of qualified management team in place to address any risk issues that may arise. There are a few ways to consider how posing a risk can either have a positive, negative outcome for the company. According to McGraw-Hill (2012),” First, risk can be categorized as a hazard. Risk management is focused on minimizing negative situations, such as fraud, injury, or financial loss. Second, risk maybe considered an uncertainty that needs to be hedge through quantitative plan and models. Third, risk also creates the opportunity for innovation and entrepreneurship.” In my opinion, there are two ways that Culture can influence corporate risk-taking are by the type of managerial approach and the effects it may have on our country institutions. Therefore, I believe depending on a business corporation size and conditioning of management discretion can overall have a vast impact on society. In conclusion, it was stated that “Greater earnings discretion strengthens and large size organizations weakens the association of culture along with corporate …show more content…
After doing extended research on AIG and Merrill Lynch, in 2008-2009 both companies merge together after facings a financial crisis that could have led to bankruptcy. Instead the company requested for assistance from the government and received a bell out in the amount of $180 billion. Shortly after AIG, executives were faced with criticism when society learned of the corporation receiving $165 million and dispersing it among four executive staff for bonuses. In my opinion, if AIG executives could have held out on accepting the bonus money and instead applying it towards their financial crisis then quite possibly the company could have avoided the scrutiny from society and the government. There are several factors that played a role in AIG; leadership, organizational services, and performance level. In conclusion, I feel that any bonuses a company may receive regardless of their position should be evaluated on their performance level or demonstration of Stewardship in the
Today, vast organizations are transitioning more towards what is known as balance stakeholder models that in long term …show more content…
Many business organizations usually have a group of qualified management team in place to address any risk issues that may arise. There are a few ways to consider how posing a risk can either have a positive, negative outcome for the company. According to McGraw-Hill (2012),” First, risk can be categorized as a hazard. Risk management is focused on minimizing negative situations, such as fraud, injury, or financial loss. Second, risk maybe considered an uncertainty that needs to be hedge through quantitative plan and models. Third, risk also creates the opportunity for innovation and entrepreneurship.” In my opinion, there are two ways that Culture can influence corporate risk-taking are by the type of managerial approach and the effects it may have on our country institutions. Therefore, I believe depending on a business corporation size and conditioning of management discretion can overall have a vast impact on society. In conclusion, it was stated that “Greater earnings discretion strengthens and large size organizations weakens the association of culture along with corporate …show more content…
After doing extended research on AIG and Merrill Lynch, in 2008-2009 both companies merge together after facings a financial crisis that could have led to bankruptcy. Instead the company requested for assistance from the government and received a bell out in the amount of $180 billion. Shortly after AIG, executives were faced with criticism when society learned of the corporation receiving $165 million and dispersing it among four executive staff for bonuses. In my opinion, if AIG executives could have held out on accepting the bonus money and instead applying it towards their financial crisis then quite possibly the company could have avoided the scrutiny from society and the government. There are several factors that played a role in AIG; leadership, organizational services, and performance level. In conclusion, I feel that any bonuses a company may receive regardless of their position should be evaluated on their performance level or demonstration of Stewardship in the