Showing posts with label board of directors. Show all posts
Showing posts with label board of directors. Show all posts

Tuesday, June 26, 2012

Corporate Governance | Case/Opinion | An appropriate response


An appropriate response.

Please prepare your arguments about this case for and against terminating his employment as a first step in restoring the reputation of your airline.

You sit on the Board of Directors of a major airline that just experienced a horrendous customer service event. 

A severe snowstorm stranded several of your planes and caused a ripple effect throughout your flight schedule, stranding thousands of passengers at airports across the country and keeping dozens of passengers as virtual hostages on planes for several hours as they waited for departure slots at their airport. 

The press has covered this fiasco at length and is already calling for a passenger bill of rights that will be based primarily on all the things your airline didn’t do to take care of its’ passengers in this situation. 

Your CEO is the founder of the airline, and he has been featured in many of your commercials raving about the high level of customer service you deliver. 

The board is meeting to review his continued employment with the company.



Source: 
Ghillyer_Business Ethics A Real World Approach 2e

Monday, June 25, 2012

Corporate Governance | Key Terms


Key Terms - Corporate Governance

Audit Committee:  An operating committee staffed by members of the board of directors plus independent or outside directors. The committee is responsible for monitoring the financial policies and procedures of the organization—specifically the accounting policies, internal controls, and the hiring of external auditors.

Board of Directors:  A group of individuals hired to oversee governance of an organization. Elected by vote of shareholders at the annual general meeting (AGM), the true power of the board can vary from institution to institution from a powerful unit that closely monitors the management of the organization, to a body that merely rubber-stamps the decisions of the chief executive officer (CEO) and executive team.

Compensation Committee:  An operating committee staffed by members of the board of directors plus independent or outside directors. The committee is responsible for setting the compensation for the CEO and other senior executives. Typically, this compensation will consist of a base salary, performance bonus, stock options, and other perks.

“Comply or Else”:  A set of guidelines that require companies to abide by a set of operating standards or face stiff financial penalties.

“Comply or Explain”:  A set of guidelines that require companies to abide by a set of operating standards or explain why they choose not to.

Corporate Governance:  The system by which business corporations are directed and controlled.


Source: 
Ghillyer_Business Ethics A Real World Approach 2e