What are the responsibilities of the board of directors? Please provide an example of a board of directors that did not meet its responsibility. Laws and standards defining the responsibilities of the board of directors differ from one country to another. In the US companies must comply with the laws in which the company was incorporated. Many countries agree on what the most important responsibilities of the board of directors are. Setting corporate strategy, overall direction, mission or vision is among the most important. The board of directors is also responsible for controlling, monitoring or supervising top management.
This includes hiring and firing of the CEO and top management. They are also responsible for reviewing and approving the use of resources and caring for shareholder interests. (45-46) One of the most well known examples of a board of directors who did not meet it’s responsibility is WorldCom. The board of directors did not control and monitor the CEO who led the destruction of WorldCom and was convicted of accounting fraud and sentenced to 25 years in prison. The CEO ran the company the way he wanted to with his goal of achieving financial growth through acquisitions without having the needed foundation.
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A driving factor was to build and protect his personal financial condition. The board of directors did not do anything to prevent this fraud. [ (Stefano, 2005) ] The impact of globalization and the Internet presents real challenges for corporate strategic planners across the world. What is the impact of globalization and the internet on the corporate world? Explain the important role of strategic planning in today’s competitive business world in light of these two forces. The internet and globalization has had a great impact on the corporate world.
Corporations can now move across borders much easier. The internet and globalization has made it possible to be able to move funds across the world very quickly. Corporations are now able to reach different economies and work with different partners to be able to serve in any market. Software companies are able to utilize programmers from all around the world because of the internet and globalization. Strategic planning is very important to today’s competitive business world. Especially in regards to the internet and globalization. (8)