How Corporate Governance Fosters Behaviors and Decisions at Wal-Mart (Essay Sample)

How Corporate Governance Fosters Behaviors and Decisions at Wal-Mart
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How Corporate Governance Fosters Behaviors and Decisions at Wal-Mart
Corporate governance is defined as the association among a company’s stakeholders. The relationship is used to define and govern the direction and organization’s performance. Basically, corporate governance concentrates on the identification of the methods of ensuring that strategic decisions are effectively made CITATION Jan15 \l 1033 (Morrison, 2015). Corporate governance at Wal-Mart has done a lot to foster ethical decisions and behaviors of the top managers.
Specifically, the organization has embraced the generally accepted principles such as the rightful and equitable treatment of all shareholders and stakeholders. The company has clearly spelt the responsibilities and roles of its management board CITATION Mar101 \l 1033 (Goergen, Mallin, Mitleton-Kelly, Al-Hawamdeh, & Chiu, 2010). The board is of appropriate size and a suitable level of commitment to carry out its duties and responsibilities. There are no issues about the correct mix of non-executive and executive directors. The important roles of the CEO and the chairperson are held by two different people.
At Wal-Mart, internal and external mechanisms of governance are used to guide the top level managers on making decisions for all the investors and other stakeholders. The company’s board of directors takes actions against any unprincipled behaviors as well as setting ethical boundaries for the organization as a whole.
Usually, the management creates and communicates a code of conduct/ethics explaining how the company plans to carry out business. As a result,...