Video Activity

1. Describe the five key responsibilities of the board of directors of a company. Why are each of these responsibilities important to the operation of the organization as a whole?
2. Discuss important related concepts, such as establishing corporate objectives, determining strategies to reach those objectives, providing leadership, supervising management of the business, and reporting to shareholders on the status and operations of the business.
3. Discuss why these responsibilities of the board of directors may be more important for a public corporation than for a privately held company.

1. What are three essential best practices in corporate governance? Discuss important relevant concepts, such as separation of duties, the need for non-executive directors, the importance of board member independence from other executives, company operations, and financial ties, as well as the importance of a non-executive audit committee.
2. Discuss why corporate governance is an ongoing process that must continuously be evaluated by a company even after separation of duties, independence, and audit committees have been established.

What is meant by LEARR in the context of governance codes? Discuss the various components that are referred to in the LEARR acronym and why they are important to a company’s continuing operations.

Discuss the role of corporate governance in attempting to minimize agency problems and ensuring that a company’s directors and management act in the best interest of the shareholders.