Strategic Management

10 Corporate Governance

‘If men were angels, no government would be necessary’

—James Madison

LEARNING OBJECTIVES

• Understand how checks and balances are embedded in private economic activities
• Familiarize different categories of stakeholders of a firm and how their interests are integrated
• Identify the difference between management and governance
• Know the principles of good governance and issues of corporate governance
• Understand the functions of corporate boards in strategic management
• Appreciate the role of corporate governance in guiding strategy and assuring strategy coherence

IDEAS AT WORK 10.1

Strategy Show: Siemens (India)—Transferring Wealth

‘If you can’t get rid of the skeleton in your closest, you’d best teach it to dance’

—George ...