Roles And Responsibilities Of The Board Of Directors

Assessment Questions Name Institution Assessment Questions Question One: Responsibilities of top management in relation to corporate governance and strategic planning Top management plays an important role in corporate governance by ensuring that all stakeholders’ interests are met as per the stipulated policies and procedures within the organization. First, top management is responsible for planning, which involves formulating corporate ambitions and a corporate governance code (Rampersad & Hussain, 2014). The ambitions are in line with the available opportunities and resources, and the effective allocation of those resources. As such, top management ensures that corporate governance code is developed in line with the formulate ambitions and balance scorecard. Second, the top management is responsible for communicating the formulated corporate ambition to all stakeholders to ensure that they are aware of the direction that the organization is taking (Rampersad & Hussain, 2014). In addition to this, the top management is responsible for informing the stakeholders of the formulated balance scorecard so that they are aware of the targets and performance measures that have been adopted by the organization. Third, top management is responsible for the implementation of the code of corporate governance (Rampersad & Hussain, 2014). This involves implementation of the procedures, guidelines and regulations that have been set in order to meet stakeholders’ interests. The implementation process will also ensure that the organization is ethical I all its operations. Finally, top management should ensure that there is continuity in terms of maintaining the ambitions and the scorecard of the organization, or better still, improving them as new challenges and opportunities present themselves. One of the main benefits of strategic management is that it provides organizations with sustainable competitive management (Hill, Jones, & Schilling, 2015). This is done through the identification of threats and opportunities that may either cripple or build the organization. Further, strategic management gives an organization a strategic direction. Strategic direction ensures that a company has control over its future and as such is able to plan and evaluate its options. Strategic management also allows for effective decision making through the different levels management (Hill, et al., 2015). These levels include the corporate, which is the top most level, business and the functional level at the bottom. Question Two: Roles and Responsibilities of the board of directors The board of director plays a major role in directing the operations of an organization and is also tasked with ensuring accountability to the shareholders (Zinkin, 2010). As such, the board of directors is tasked with defining and agreeing on the purpose of the organization. This involves determining the customers of the organization, the expected outcomes to be experienced by the customers and concurring on the costs to be incurred in delivering the expected outcomes (Zinkin, 2010). In addition to this, the board of directors should also determine the expected returns as a result of the aforementioned activities, which is basically how the organization measure...