Academic journal article IUP Journal of Corporate Governance

Focus

Academic journal article IUP Journal of Corporate Governance

Focus

Article excerpt

The corporate board not only helps lay out the firm's strategic goals but provides oversight as well. The board's responsibility is to make sure that the firm implements a strategy that is consistent with its philosophy and strategic management framework and can be implemented by the management and staff with sufficient expertise and resources. Hence, the board sets the direction and provides oversight and control, while the management carries out the board directives and manages the daily affairs of the firm.

Against this backdrop, the authors, Susan S Lightle, Joseph Castellano, Bud Baker and Robert J Sweeney, of the first paper, " The Role of Corporate Boards in Employee Engagement", have attempted to highlight the growing recognition of the importance of employee engagement and emphasized the need to recognize it as a legitimate area of interest for boards of directors. The study also underscores that the boards have a duty to ensure that the top management makes such engagement a priority. Though a conceptual paper, the major value addition of it is in its contention that the importance of employee engagement needs to become a part of a board's regular corporate governance repertoire. The paper stresses that failing to do so is to ignore the demonstrated connection between employee engagement and the financial performance of the firm. Thus, the paper recommends a new role for boards of directors and concludes with an anecdotal example from the healthcare industry. Interestingly, it throws open a wide array of research opportunities for further exploration.

Following this, we have another interesting paper, "The Impact of Board Characteristics on Corporate Governance and Disclosure Practices of Firms Listed in Indian Stock Exchange", wherein the author, Pankaj M Madhani, has examined the influence of internal corporate governance mechanisms such as board characteristics on corporate governance and disclosure practices of firms. The effectiveness of corporate governance mechanism in maintaining a healthy relationship between the management and the shareholders depends significantly on board effectiveness. Two major attributes that affect a board's effectiveness are board size and its composition. Hence, the research focuses on this aspect and identifies the relationship between board characteristics, i. …

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