Business Administration, Management, and Operations Commons^™

Corporate Governance In The Era Of Sarbanes-Oxley, Larry W. Ettner

Student Scholarship

In July 2002, Congress passed the Sarbanes-Oxley Act, which mandated that public corporations substantially change their corporate governance practices. Sarbanes-Oxley was the result of egregious practice of corporations, directors, officers, and advisors, which resulted in billions of investor dollars being misappropriated and lost. Substantial corporate resources are being expended to comply with the intended (statutory) consequences of the Act. Within the framework of stockholder theory, the historic CEO-centric model of governance is being replaced by the independent director-centric model (post Sarbanes-Oxley). As a consequence of Sarbanes-Oxley, its foundational requirement of agency theory application advances an adversarial model of distrust. The …

Relational Governance: An Evolving Model Responding To Evolving Needs!, Joseph Mandato

Student Scholarship

Researchers are challenging extant models of nonprofit governance practices. Given an apparent shortfall in effective practice, a deductive study is conducted to determine the impact of a refined management model, relational governance, on outcomes cited in the literature as examples of effective practice. Relational governance emphasizes partnering, advising relationships between board and management and builds on recent nonprofit governance literature while contrasting on several dimensions with the well-known extant model policy governance. A research design is presented for empirically testing the relational governance model by means of a survey instrument made available to the unit of research, current and former …

Worker Ownership In Enron's Wake - Revisiting A Community Development Tactic, Peter R. Pitegoff

Faculty Publications

Worker ownership of business enterprise has long been touted as a vehicle for community economic development. Employee stock ownership plans in leveraged buy-outs, ESOPs and broad-based stock options in going concerns, and worker cooperatives in selected sectors - the experience has varied widely in goals, method, and outcome.

This Article reflects on the continued utility of worker ownership as a component of community development and calls attention to contrasts with conventional corporate governance and goals. Rather than an end in itself or just another way of doing business, worker ownership can be a vital element of a broader job creation, …

Is Organizational Democracy Worth The Effort?, Jeffrey S. Harrison, R. Edward Freeman

Management Faculty Publications

Organizational democracy is frequently associated with increased employee involvement and satisfaction, higher levels of innovation, increased stakeholder commitment, and, ultimately, enhanced organizational performance. However, democratic processes can also absorb significant time and other organizational resources and bog down decisions, which may lead to reduced efficiency. This article summarizes the pros and cons of organizational democracy. It also introduces and integrates ideas from the three other articles in this special forum. In the end, we conclude that although the economic arguments for organizational democracy may be mixed, increased stakeholder participation in value creation and organizational governance can benefit both society and …

Off-Shore Borrowing And Guarantees By Banks: Implication For Portfolio Management., C. C. Edordu

Bullion

The subject I have been asked to reflect on is important and somewhat provocative given the potential significance of foreign capital in the development process and the implied doubt the topic raises about the capacity of banks to manage their portfolios on accessing external finance. With regard to financing tenors, it is pertinent to point out that the tenor of liabilities of most banks in Nigeria and Africa is short. The paper has focused on the various discussions about the conditions for good governance, which raises questions about the structure and functioning of the state, its relationship to society and …

Corporate Citizenship – Convergence In Corporate Governance?, Vikram Rajaram

IIMB Management Review

In an almost seamless manner good corporate governance is seen to include corporate citizenship and, through an extension of good citizenship - corporate philanthropy. Corporate India seems to have accepted the nexus between the creation of wealth and the distribution of wealth. In the same manner that recommended corporate governance practices of yesteryear have now been enshrined in statutes, it is probably a portent of things to come that what constitutes good corporate Round Table 90 citizenship today will, with the passage of time, be decreed by law.

Corporate Governance, Reputation And Competitive Credibility, N Balasubramanian, David Kimber

IIMB Management Review

The decade of the 1990s has perhaps seen the most profound changes in global economic structures. The effects of structural adjustment and globalisation, and the emergence of the World Trade Organisation (WTO) have meant that the role of business has dramatically changed throughout the world. Statistics of the number of corporations that are larger than nation states abound and only illustrate the importance of the corporate sector and its impact on the world order

Re-Designing Performance Appraisal Systems By T V Rao And Uday Pareekh, Tata Mcgraw Hill Publishing Company Ltd., G T Jejurikar

IIMB Management Review

The book under review has been edited by management experts Uday Pareekh and TV Rao who need no introdction to professional managers. Performance Appraisals are a means to an end, the end being the performance of the organisation. The objective of the book has been succinctly stated in the preface; that the intention of the book is not to give readymade appraisal systems but to acquaint the readers with designing, implementing, reviewing and strengthening the process of performance development systems. ‘The book has been compiled keeping in mind the current day business challenges looming ahead for Indian organisations facing international …