Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 16/e

Boards of Directors: Governance Issues

A board of directors is a group of individuals elected by the ownership of a corporation to have oversight and guidance over management and to look out for shareholders’ interests. The act of oversight and direction is referred to as governance. The National Association of Corporate Directors defines governance as “the characteristic of ensuring that long-term strategic objectives and plans are established and that the proper management structure is in place to achieve those objectives, while at the same time making sure that the structure functions to maintain the corporation’s integrity, reputation, and responsibility to its various constituencies.” Boards are held accountable for the entire performance ...