These candidates are recommended by the Governance and Nominating Committee every year to fill any open membership spots that may be on the board. As previously stated, one of their main goals is to assure that the long-term interest of shareholders are served. Their roles also include establishing and promoting Microsoft’s business and organizational goals, working with management to determine the company’s mission statement and long term strategies, and many more important responsibilities. In order for the board to be unbiased in these responsibilities, it is mainly made up of independent directors. If the board is comprised of upper level management and other people within the company, then it could cause agency problems with shareholders. Managers are only human, so if there are any agency costs, either implicit or explicit, then the manger might not act in the best interest of the shareholders. This is why Microsoft has the board members be mostly independent directors, so this issue does not occur. Microsoft created the board to serve as agents for owners, shareholders, and to protect its …show more content…
Some of these ways include releasing information at a certain time, depending on positive or negative news. Microsoft is company that has not had any issues with the financial markets. They have not released any intentionally misleading information, or outright fraud. Microsoft actually has a relatively positive relationship with financial markets; they are currently invested in a long term project with finding new ways to use renewable energy. One of the methods that is used to determine if managers delay bad news is by looking at the EPS and DPS changes by weekday. When looking at Microsoft’s EPS and DPS weekday changes, there are no distinct signs that show the company’s managers are delaying bad news. Markets get information that is released by the company’s upper level management. Information is also displayed on the company’s website. Microsoft takes its social responsibility very seriously. Two of the main responsibilities they focus on are human rights and environmental sustainability. Through the use of technology, Microsoft is promoting respect for human rights globally and finding new ways to help create a more sustainable future. Overall, Microsoft has a relatively positive image in society as they continue to leave their technological footprint in making future