Chapter 2 Flashcards
(13 cards)
stewardship theory
senior executives with a long tenure identify more with the organizational success
transformational leadership
these leaders provide change/movement in the organization
staggered boards
only a portion of board members are elected each year
strategic planning staff
supports both top management and business units in strategic planning process
due care
the board is required to direct the affairs of the organization not manage them
corporate governance
the relationship among boards of directors, top management and shareholders
sarbanes oxley act
this was designed to protect shareholders
corporation
mechanism allowing capital, labor and expertise to be contributed
strategic vision
description of what the company is capable of becoming
agency theory
when executives are not willing to bear responsibility unless that have “skin” in the game.
role of board in strategic management
monitor
evaluate & influence
initiate & determine
codetermination
the inclusion of corporation workers on its board, began recently in US
executive leadership
the directing of activities towards the accomplishment of corporate objectives
sets the tone for entire corporation.
