The paper 'Governance and Sustainability' is a great example of a Management Assignment. Corporate governance and accountability have in the past few years generated a lot of research attention with many researchers choosing to examine the mechanisms through which corporate management can improve governance and accountability. Given the significance of the management in enhancing governance and accountability, there has been a corresponding emphasis on the need to have a management team that can improve governance and performance of organizations. It is this renewed interest in management that saw many organizations adopt hierarchical management and decision-making structure with a team at the apex of the hierarchy, the Board of Directors (BOD).
This paper seeks to undertake a critical analysis of the role played by the BODs in ensuring enhanced governance and accountability in organizations based on the outcomes of empirical studies and further investigate the impact of governance aspects such as board diversity on corporate accountability. Moreover, the fundamental concepts of corporate governance will be discussed to comprehend the deficiencies that exist in corporate governance systems. Background to the Use of BODs in Corporate GovernanceTo comprehend the role that BODs play in corporate management today, it is important to investigate the conditions and factors that led to the adoption of the boards as the ultimate bodies of decision-making in organizations.
Most empirical literature materials trace the origin of using BODs in corporate management to the conditions brought about by the growth in financial markets. In essence, it is espoused that before the advent and growth of the stock market, large companies were managed by the owners, and there was a need to incorporate more people into management for such businesses to expand.
Using BODs in corporate management was necessitated by the need for economies (economies of scale) to grow that required a large number of different investors to provide money for companies that created an aspect of limited liability in which the team of investors (Board of Directors) made ultimate decisions concerning the management of the business (Solomon, 2007, p. 3).
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