Download Boardroom Secrets: Corporate Governance for Quality of Life by Y. Argüden PDF

By Y. Argüden

Concentrating on the constitution, strategies, and behaviors for a board of administrators to make sure solid governance, this publication examines the behavioral facets of governance similar to easy methods to evaluation and technique info supplied to the board, tips on how to seriously query with no de-motivating and the way to supply advice with out interfering with administration.

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Not being properly informed as to the risks and costs of each alternative. Not giving enough attention to plans regarding implementation. When the members of a group see themselves as being overly successful and invincible they are at an increased risk of falling into the trap of groupthink. This risk is seen more commonly in the boards of successful corporations who have been working together for long periods of time. When important decisions are being made it is not uncommon for some board members to take on the role of devil’s advocate and also to weigh the opinions of experts other than members regarding the risks and alternatives; such actions may in fact decrease the risk of groupthinking.

In order to gain access to the resources of others, institutions need to create trustworthy relationships. Therefore, the key to success and development is gaining the trust of present and potential stakeholders. For example, in order to be able to grow fast and compete globally firms need to gain access to global credit or equity capital markets. Similarly, as the role of corporations in the development of the world’s economy increases and the scope of their influence widens, so does the breadth of their responsibilities.

The ability to say “no” when necessary is a critical test of independence. However, it should be clear that the role of the board members is not to paralyze decision-making by always raising concerns on numerous aspects, but rather to ensure that every aspect of a decision is considered, the necessary precautions taken, and the decisions are reached in a timely manner. In order for the members of the board to conduct their tasks in an efficient manner, they should have experience in various areas such as strategy, finance, law, and technology, in addition to a special focus on the future and sustainability of the company.

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