Issues In Corporate Governess
Various issues keep on popping in various corporate from time to time but i have chosen one of the most famous case of its time.
Toshiba Accounting Scandal
Toshiba Corporation is a Japanese multinational conglomerate corporation having its headquartered in Tokyo, Japan. In 2010, Toshiba was the world's fifth-largest personal computer producer. It has vast variety of products including information technology and communications equipment and systems, electronic components and materials, consumer electronics, household appliances, medical equipment, office equipment, lighting and logistics and many more. In September 2015, electronics conglomerate Toshiba admitted that it had overstated its earnings. The CEO and …show more content…
The simplest agency model assumes that no agents/ Directors are trustworthy and “if a director can make himself better off at the expense of a principal then he will. This ignores the likelihood that some directors will in fact be trustworthy and will work in their principals’ interests whether or not their performance is monitored and output measured. The degree of untrustworthiness is therefore a key factor in determining the extent to which incentives and monitoring mechanisms need to be put in place”. …show more content…
This responsibility should not be assigned to a small group of board leaders, a committee, or some staff. It is critical that each individual board member thoroughly checks / review the financials that are provided to the board and develop understanding.
The CEO should ensure to provide a copy of their audited financial statements on the organization's Web site and the full board should review them in detail.
Periodic Assessment of Board's Performance: Self-assessment is a very important step in strengthening a board's own performance and a powerful signal that the board is committed to effective and accountable leadership.
Annual Assessment of Key Management (CEO): The CEO or executive director is the board's one employee, and providing appropriate oversight and management is essential. Conducting a formal, annual review so as to ascertain that the board and CEO are on the same page about the goals and priorities for the next year and ensures that the CEO is given constructive feedback about his or her performance in past and a clear way forward is given to
Various issues keep on popping in various corporate from time to time but i have chosen one of the most famous case of its time.
Toshiba Accounting Scandal
Toshiba Corporation is a Japanese multinational conglomerate corporation having its headquartered in Tokyo, Japan. In 2010, Toshiba was the world's fifth-largest personal computer producer. It has vast variety of products including information technology and communications equipment and systems, electronic components and materials, consumer electronics, household appliances, medical equipment, office equipment, lighting and logistics and many more. In September 2015, electronics conglomerate Toshiba admitted that it had overstated its earnings. The CEO and …show more content…
The simplest agency model assumes that no agents/ Directors are trustworthy and “if a director can make himself better off at the expense of a principal then he will. This ignores the likelihood that some directors will in fact be trustworthy and will work in their principals’ interests whether or not their performance is monitored and output measured. The degree of untrustworthiness is therefore a key factor in determining the extent to which incentives and monitoring mechanisms need to be put in place”. …show more content…
This responsibility should not be assigned to a small group of board leaders, a committee, or some staff. It is critical that each individual board member thoroughly checks / review the financials that are provided to the board and develop understanding.
The CEO should ensure to provide a copy of their audited financial statements on the organization's Web site and the full board should review them in detail.
Periodic Assessment of Board's Performance: Self-assessment is a very important step in strengthening a board's own performance and a powerful signal that the board is committed to effective and accountable leadership.
Annual Assessment of Key Management (CEO): The CEO or executive director is the board's one employee, and providing appropriate oversight and management is essential. Conducting a formal, annual review so as to ascertain that the board and CEO are on the same page about the goals and priorities for the next year and ensures that the CEO is given constructive feedback about his or her performance in past and a clear way forward is given to