Role Of The Management And Corporate Governance



Published
CHAPTER FOUR
APPLY THE GOVERNANCE FRAMEWORKS ELEMENTS IN A BUSINESS CASE
GOVERNANCE FRAMEWORK AND STRUCTURES
ROLES AND RESPONSIBILITIES OF MANAGEMENT
The emerging corporate governance reforms create unprecedented and profound demand for competent and ethical corporate officers. They include the following;
a) CEO- chief executive officer.
b) CFO- Chief finance officer.
c) CRO- chief compliance officer.
d) COO-chief operating officer.
e) CDO-Chief development officer
f) Company secretary.


The CEO, as an icon of the company's management team, plays a key role in the improvement of corporate governance. Many state corporate laws require a corporation to have a president and secretary. Corporations usually have a management team consisting of a CEO, CFO, controller, treasurer, and other key members, including chief compliance/governance officer, CRO, chief operating officer (COO), chief development officer (CDO), and corporate legal counsel. The role of the management team in the United States is to run the company and is generally vested by the board in the CEO. The managerial function in countries such as Germany is vested in the management board that operates collectively to carry out managerial responsibilities, where the supervisory board oversees the management board on behalf of the shareholders and employees.

Chief Executive Officer

The CEO is the heart of the managerial function of corporate governance. All other senior executives and managerial personnel look to the CEO for direction, guidance, and ethical conduct. The CEO sets the appropriate tone at the top by promoting effective functioning, ethical conduct, and professional behavior throughout the company. The long-term survival and success of the goal of sustainable and enduring stakeholder value creation are in the hands of the CEO. The CEO is in the driver's seat for taking the company on its long journey of success, growth, prosperity, failure, or bankruptcy. Thus, personal attributes, ethical values, and professional characteristics of the CEO should be in line with the company's board of directors' and shareholders' values, visions, and strategic plans. The wave of financial scandals and business misconduct raised serious concerns about the professional accountability, personal integrity, and competency of many CEOs.

Functions of the CEO
The typical duties, responsibilities, and job description of a CEO include:
a) Communicating, on behalf of the company, with shareholders, government entities, and the public.
b) Leading the development of the company's short- and long-term strategy.
c) Creating and implementing the company or organization's vision and mission.
d) The CEO provides information and data to the board regarding strategy formulation.
e) The CEO provides data regarding external environment, to senior mangers, guides and helps them in formulating, implementing and evaluating and reformulating strategies at strategic business units are based on the corporate strategies.
Category
Management
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