Amazon Corporate Governance (Research Paper Sample)

Name
Instructor
Task
Date
Amazon Corporate Governance
Amazon is governed by the Corporate Governance Committee of the Board of Directors. The Committee, which is selected by the Board, is comprised of a minimum of two directors who must meet the requirements of Nasdaq Stock Market regarding independence as resolved by the Board. The Committee evaluates the governing charter from time to time and recommends necessary changes of the Board. The Statement of purpose specifies the objectives of the committee. These include reviewing and evaluating the structure of the Board and assisting in the identification of prospective new contenders for Director. Also, the Committee recommends contenders for Directors election and provides a leadership role concerning the corporate governance of the Company. The specific duties and responsibilities of the Committee must be consistent with and dependent on the relevant laws as well as guidelines and principles publicized by the SEC, NASDAQ, or other supervisory authority. Concerning reviewing and assessing the structure of the Board, the committee makes recommendations to the Board duties of members of the committee and leaders of every committee. Secondly they analyze the credentials of Directors for sustained service on the Board. Thirdly, they help the Board in the yearly CEO and Director self-appraisals (Tricker, 81).
Under the Committee’s function of assisting in identifying the prospective new contenders for Director, they create and make recommendations to the Board the principles for identifying and evaluating potential Directors. They also develop and occasionally review the guiding principle for Director Candidates as required by the shareholders of the company. Finally, the Committee pinpoints and reviews the credentials of Director Candidates. Consistent with their role in recommending candidates for appointments as directors, the Committee makes recommendations to the Board contenders for selections or confirmation as Directors at every yearly shareholders meeting. Besides, they endorse candidates for selection by the Board as appropriate to fill vacancies and freshly formed Directorships. Other specific responsibilities include periodically considering, and reporting to the Board on issues related to general corporate governance and developing and occasionally reviewing the principles of corporate governance and recommending changes to the Board. Besides, they endorse compensation for freshly-elected Directors and review Director Reparation as required (Mallin, 45).
Another corporate governance of Amazon involves focusing persistently on their customers. The company makes noble investment decisions for lasting leadership considerations instead of immediate profitability considerations. Amazon believes in more future innovation, and as such, they are devoted to prolonging their leadership in online business in a manner benefiting customers to create a good relationship between the company and its clients. Regardless, of the returns from the bold investments decisions, Amazon will learn have learned its valued lessons. The company focuses on working hard, spending intelligently, and maintains their lean culture. Amazon understands the significance of steadily strengthening a culture of cost-consciousness. They on employing and maintaining resourceful and talented workers, and weight their recompense to substantial stock ownership instead of cash compensations. The company acknowledges that their effectiveness is greatly influenced by the capacity to attract and keep a motivated workforce, each of whom needs to think, act and be an owner (Lipman and Lipman, 123).
Code of Business Conduct and Ethics is also enshrined in Amazon’s corporate governance strategy. At Amazon, personnel must continuously act lawfully, virtuously, and in the best interest of the company. The Code of Business Conduct and Ethics also referred as the Code of Conduct defines the fundamental guiding principles. Workers who are uncertain whether their behavior or those of their colleagues conforms to the Code of Conduct are required to contact their superiors or the department concerned with legal issues. Employees are also expected to report any alleged noncompliance to the legal department. The staffs are required to apply their personal judgment in acting in the best interest of the company to avoid conflicts of interests. Amazon acknowledges that a conflict of interest occurs when personal interest of an employee affects the best interest of the business. For instance, a conflict of interest may arise when a member of staff or member of a family obtains a personal benefit because of the worker’s position with the company (Thévenoz, 107). Amazon recognizes that a conflict of interest may also occur if worker’s business or individual relations with clients, suppliers, business associates, competitors, or coworkers causes impairment to the employee’s impartial business decisions. The company’s legal department ...