Business Ethics and Corporate Governance, Second Edition

CORPORATE MANAGEMENT STRUCTURE

The board may be expected to lay down policies, procedures and programmes, but may not be able to secure their implementation under their guidance and continuous supervision, or communicate their decision to the rest of the staff. To do this, the executive committee consisting of one or more whole-time directors and other top officials is appointed. These appointees of the board are called chief executive officers (CEOs) or managing directors, depending on how the company wants to name them. The chief executives serve as a link between the board of directors on one side, and the operating organization on the other. Their work consists of interpreting the policy decisions for the benefit of those responsible for ...