Microsoft (ticker = MSFT).
Corporate Governance & Ethics – general question
You should be aware of the many benefits of outstanding corporate governance including stability of equity prices, avoidance of unexpected takeover offers, and sensitivity to shareholders’ concerns regarding compensation of senior executives and the strategic direction of the firm. These attributes come about through the efforts of multiple “players” or influences regarding the manner in which the governance structure and performance are developed.
Choose 3 of the following players or “agents” that have the most influence on your assigned company and discuss how they influence the creation and maintenance of governance for the firm. Why did you select these three players and how do they exert their influence? Where do they have common and conflicting issues in their governance approach. What ethical issues stand out the most strongly for your chosen agents? How does “agency theory” enter into the relationship?
Players:
• Board of directors
• Senior management and incentive/compensation structures
• Financial planners/Investment advisors
• Investment banks and security analysts
• Accounting and auditing firms
• Creditors and credit rating firms
• Activist shareholders
• Merger and acquisition firms
• SEC and other regulatory requirements
• Corporate social responsibility concerns
Remember to:
• Connect the data/information with governance theory
• Provide actionable information for decision-making
Presentation information:
• Be sure to use headings to clearly show you are answering each part of the overall question.
• Use tables and charts to present data instead of using valuable word space to delineate data.
• You are assessed based on your unique discussion not just a compilation of external sources and analysis.
• Please limit your answer to 2000 – 2250 words. The tables and charts do not count as part of the overall word count.
• Please cite your sources.
• Please single-space within paragraphs and double-space between paragraphs.
• Section headings to get you started:
o Section 1: Overview of company data and information that pertains to governance
o Section 2: Analysis and synthesis of data and information. Make sure to delineate the three players.
o Section 3: Conclusion with recommendations for managers including how and why to use information for decisions