1 When does a corporation need a board of directors Who shou

1. When does a corporation need a board of directors? Who should and should not serve on the board of directors?

2. Is there a link between corporate governance and social responsibility? Explain.

3. How can a decision maker identify strategic factors in the corporation\'s external environment? How will you do this in your case analysis?

4. What is the relevance of the resource-based view of a firm to strategic management in a global environment?

Solution

1. Corporation needa board of directors when it does not have all the skills and expertise to run its operations effectively. The members of the board bring in a lot to the table in terms of their experience and skills in matters related to law, strategy, finance and marketing etc. This helps the company grow in an effective manner.

Board of directors consists of internal members of an organization and independent directors. Internal members should usually consist of CEO and top management members. Employees in the low rung of hierarchy should not serve on the board. Independent directors should not be a person who has a financial interest in the company.

2. Yes, there is a link between corporate governance and social responsibility. Corporate governance looks at maintaining the balance between the economic and social goals of a company. It helps in streamlining the interest of the company with that of the society.

CSR or corporate social responsibility aims at ethical treatment of stakeholders. It aims at conducting the company in a socially responsible manner.

Having corporate governence in a company encourages the implementation of CSR activities. A company with poor corporate governance will not be doing much in terms of CSR initiatives.

So there is a direct relation between corporate governance and CSR.