STRATEGIC MANAGEMENT CHAPTER TEN （战略管理第十章）.pptxVIP

 PART 3: STRATEGIC ACTIONS: STRATEGY IMPLEMENTATION CHAPTER 10CORPORATE GOVERNANCE THE STRATEGIC MANAGEMENT PROCESS KNOWLEDGE OBJECTIVES KNOWLEDGE OBJECTIVES CORPORATE GOVERANCE: WHAT IS ALL THE FUSS ABOUT? ■ Corporate governance can destroy or create value for a firm. ■ It is concerned with: 1. strengthening the effectiveness of a company’s board of directors 2. verifying the transparency of a firm’s operations 3. enhancing accountability to shareholders 4. incentivizing executives 5. maximizing value-creation for stakeholders and shareholders OPENING CASE CORPORATE GOVERANCE: WHAT IS ALL THE FUSS ABOUT? ■ Given recent criticisms, boards’ actions in nations throughout the world are being more carefully scrutinized and regulated. ■ In the U.S., that after being fired by their firm, a number of CEOs still remain as members of other firms’ boards of directors, is drawing close attention. ■ Corporate governance is weak in many Chinese firms and there is concern about the validity and reliability of some auditors’ work and the quality of companies’ financial statements. OPENING CASE CORPORATE GOVERANCE: WHAT IS ALL THE FUSS ABOUT? ■ The reason there is a “fuss” about corporate governance is that these activities are critical to globally signaling transparency coupled with strategic competitiveness. ■ Corporate governance fundamentals: Corporate Directors should: ● Focus on creating long-term value for shareholders ● Use performance-related pay to attract and retain senior management ● Exercise sound business judgment to evaluate opportunities and manage risk ● Communicate with key shareholders OPENING CASE CORPORATE GOVERNANCE Corporate governance: a set of mechanisms used to manage the relationships (and conflicting interests) among stakeholders, and to determine and control the strategic direction and performance of organizations (aligning strategic decisions with company values) When CEOs are