In my opinion corporate governance fails because of bad decisions made by the CEO’s, Board of Directors, Shareholders, and Top Management. “One of the many problems that defenders of America’s free market system fail to address is the severe dysfunction at the top of the nation’s big public companies. Cases in point include some of the biggest bankruptcies of the last decade: Lehman Brothers, General Motors, WorldCom, Enron and many more” (Cohan, 2009). Our text states that “good corporate governance means better strategic management” (Wheelen&Hunger, 2012 pg. 63) which means that corporate governance fails because of poor strategic management. “The systemic failure of corporate governance is particularly associated with the Anglo-American corporate governance model that has enabled, permitted or tolerated excess power and wealth at the hands of CEOs and cultivated a ‘greed-is-good’ culture in banks (Sun, Stewart & Pollard, 2012).” Cohan, P. (2009, December 28).
Daily finance. Retrieved from http://www.dailyfinance.com/2009/12/28/why-american-corporate-governance-is-a-bust/ Wheelen, Thomas L., and J. David Hunger. Strategic Management and Business Policy: Toward Global Sustainability. Upper Saddle River, NJ: Pearson Prentice Hall, 2012. 45. Print Sun, W., Stewart, J., & Pollard, D. (2012, February 15). Retrieved from http://www.europeanfinancialreview.com/?p=4690 b. List some of the “indulgences” other than golden parachutes and poison pills (which are given to managers by the BOD) some managers have given to themselves. After reading an article on Crickey.com I found that managers give themselves high salaries, benefits, vacations, and parties.
“Looks like a whizz-bang machine dispensing beverages made from Brazilian coffee beans has been introduced to GTV9’s newsroom in a bid to boost staff morale as ratings continue to disappoint”(Tips& Rumors,2010). In my opinion these perks are ridiculous one article stated that “Martha Stewart Living Omnimedia spent $73,230 on a weekend driver for its eponymous founder. It also paid for her personal trainer, “provided in her capacity as on-air talent” (Rexrode, 2012). Don’t people ever think of the less fortunate, homeless, or jobless; the more I read the article the more upset I got. Web log message]. (2010, October 21). Retrieved from http://www.crikey.com.au/2010/10/21/tips-and-rumours-337/ Rexrode, C. (2012,
Courtney from Study Moose