The Government of Indonesia has been implementing good governance programs since the post New Order period. In running the programs, the government makes strategic choices by improving the performances in public sector organizations or public services. In fact, the State Civil Apparatus merely perform the basic tasks in a standard manner, not above it. In line with that case, it needs to implement the Organizational Citizenship Behavior (OCB) in public sector services to make good governance programs run optimally. Based on the previous research, there are several supporting variables in realizing the OCB, namely the Job Satisfaction, the Organizational Justice, the Perceived Organizational Support (POS), and the Perceived Supervisor Support (PSS). Therefore, this study aims to discuss the effects of the organizational justice and the job satisfaction as mediators on the relationship between the POS, the PSS and the OCB on a Public Institution in Indonesia. The research was conducted at Institution X, in which there in, the personnel consist of the three elements of State Civil Apparatus, namely the Indonesian Armed Forces, the Indonesian Police, and the Civil Servants. The method used was quantitative method by distributing questionnaires, both online and the printout ones. The samples were as many as 211 employees of Institution X while the research model was analysed using SEM-PLS. The results of the study show that satisfaction.and the Organizational Justice are able to fully mediated the positive relationship between the POS and the PSS and the OCB.
{"title":"The Effect of Perceived Support On Organizational Citizenship Behaviour : The Mediating Role of Organizational Justice and Job Satisfaction: Case Study on A Public Institution in Indonesia","authors":"Kartika Cahyani, E. Pusparini","doi":"10.2139/ssrn.3578234","DOIUrl":"https://doi.org/10.2139/ssrn.3578234","url":null,"abstract":"The Government of Indonesia has been implementing good governance programs since the post New Order period. In running the programs, the government makes strategic choices by improving the performances in public sector organizations or public services. In fact, the State Civil Apparatus merely perform the basic tasks in a standard manner, not above it. In line with that case, it needs to implement the Organizational Citizenship Behavior (OCB) in public sector services to make good governance programs run optimally. Based on the previous research, there are several supporting variables in realizing the OCB, namely the Job Satisfaction, the Organizational Justice, the Perceived Organizational Support (POS), and the Perceived Supervisor Support (PSS). Therefore, this study aims to discuss the effects of the organizational justice and the job satisfaction as mediators on the relationship between the POS, the PSS and the OCB on a Public Institution in Indonesia. The research was conducted at Institution X, in which there in, the personnel consist of the three elements of State Civil Apparatus, namely the Indonesian Armed Forces, the Indonesian Police, and the Civil Servants. The method used was quantitative method by distributing questionnaires, both online and the printout ones. The samples were as many as 211 employees of Institution X while the research model was analysed using SEM-PLS. The results of the study show that satisfaction.and the Organizational Justice are able to fully mediated the positive relationship between the POS and the PSS and the OCB.","PeriodicalId":309554,"journal":{"name":"CGN: Case Studies (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-04-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124431031","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Lawrence Mosley, Hieu Pham, Xiaoshi Guo, Y. Bansal, Eric Hare, Nadia Antony
The transparent and immutable nature of the blockchain provides incentives for companies wishing to create an open, decentralized governance structure within their organization. As members exercise their voting rights, a fault tolerant record accumulates on the blockchain that can be analyzed to diagnose and intercept potential threats to the governing body. To date there has not been a systematic study of on-chain governance with respect to voting. In this paper, we provide an analysis of blockchain governance through a case study of the first cryptocurrency to adopt on-chain voting, Dash. Our analysis introduces the key characteristics of blockchain governance, highlights exploitable attack vectors for the subversion of the Dash voting system, and steps through a data driven exploration enabled only by the transparent nature of the blockchain before concluding with guidelines for other organizations looking to implement similar on-chain governance solutions.
{"title":"Towards a Systematic Understanding of Blockchain Governance in Proposal Voting: A Dash Case Study","authors":"Lawrence Mosley, Hieu Pham, Xiaoshi Guo, Y. Bansal, Eric Hare, Nadia Antony","doi":"10.2139/ssrn.3416564","DOIUrl":"https://doi.org/10.2139/ssrn.3416564","url":null,"abstract":"The transparent and immutable nature of the blockchain provides incentives for companies wishing to create an open, decentralized governance structure within their organization. As members exercise their voting rights, a fault tolerant record accumulates on the blockchain that can be analyzed to diagnose and intercept potential threats to the governing body. To date there has not been a systematic study of on-chain governance with respect to voting. In this paper, we provide an analysis of blockchain governance through a case study of the first cryptocurrency to adopt on-chain voting, Dash. Our analysis introduces the key characteristics of blockchain governance, highlights exploitable attack vectors for the subversion of the Dash voting system, and steps through a data driven exploration enabled only by the transparent nature of the blockchain before concluding with guidelines for other organizations looking to implement similar on-chain governance solutions.","PeriodicalId":309554,"journal":{"name":"CGN: Case Studies (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2019-07-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116212276","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Change Management at organizational level has been conceived to be an important aspect of successful change implementation programmes in modern organizations. In order to benefit from the efficiency that appropriate management of change offers in structured organizations, the study of management has ascribed importance to the study of change management as a management concept. This study has attempted to review existing literature on the subject. The study presented a conceptual analysis of the concept of change and the principles developed by practitioners for the management of change. A theoretical review of the concept was undertaken with focus on the Kurt Lewin’s force field theory which has been generally accepted as the theoretical foundation of change as attested by the acceptance of the theory as the bases for all other theories of change and this ascribed the title father of change management to Kurt Lewin. This study analyzed the basis of Kurt Lewin’s force field theory built on three steps of Unfreeze, Change and Refreeze for an effective change management programme. The Study adopted a case study research conducted by other researchers to validate the effectiveness of the three stages of effective change management as propounded by Kurt Lewin.
{"title":"Organizational Change Management: A Literature Review","authors":"A. T. Hassan","doi":"10.2139/ssrn.3135770","DOIUrl":"https://doi.org/10.2139/ssrn.3135770","url":null,"abstract":"Change Management at organizational level has been conceived to be an important aspect of successful change implementation programmes in modern organizations. In order to benefit from the efficiency that appropriate management of change offers in structured organizations, the study of management has ascribed importance to the study of change management as a management concept. This study has attempted to review existing literature on the subject. The study presented a conceptual analysis of the concept of change and the principles developed by practitioners for the management of change. A theoretical review of the concept was undertaken with focus on the Kurt Lewin’s force field theory which has been generally accepted as the theoretical foundation of change as attested by the acceptance of the theory as the bases for all other theories of change and this ascribed the title father of change management to Kurt Lewin. This study analyzed the basis of Kurt Lewin’s force field theory built on three steps of Unfreeze, Change and Refreeze for an effective change management programme. The Study adopted a case study research conducted by other researchers to validate the effectiveness of the three stages of effective change management as propounded by Kurt Lewin.","PeriodicalId":309554,"journal":{"name":"CGN: Case Studies (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2018-03-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129724218","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
24 p. ; "January 11, 2018." ; The authors "are thankful for constructive comments and suggestions from two reviewers. Veenstra gratefully acknowledges the financial support of McMaster University."
{"title":"Home Capital Group - The High Cost of Dishonesty","authors":"Kareen Brown, Kevin Veenstra","doi":"10.2139/SSRN.3105310","DOIUrl":"https://doi.org/10.2139/SSRN.3105310","url":null,"abstract":"24 p. ; \"January 11, 2018.\" ; The authors \"are thankful for constructive comments and suggestions from two reviewers. Veenstra gratefully acknowledges the financial support of McMaster University.\"","PeriodicalId":309554,"journal":{"name":"CGN: Case Studies (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2018-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132294916","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper shows how the study of the integral process of HP's becoming and the differential contributions of successive CEOs to that process can be combined to create an evolutionary framework of the role of strategic leadership in corporate becoming. This conceptual framework reflects the paradox of corporate becoming and the conditions that govern it, highlights the existential situation facing successive CEOs chartered with sustaining the process, and indicates that strategic leadership of long-lived companies involves an imperfect across-CEO tenures learning process. It offers strategic leadership advice for founders of new companies as well as for CEOs and boards of directors of existing companies who intend to create, run or oversee long-lived companies.
{"title":"HP's Process of Corporate Becoming -- Why Strategic Leadership Matters","authors":"Robert A. Burgelman","doi":"10.2139/ssrn.2722370","DOIUrl":"https://doi.org/10.2139/ssrn.2722370","url":null,"abstract":"This paper shows how the study of the integral process of HP's becoming and the differential contributions of successive CEOs to that process can be combined to create an evolutionary framework of the role of strategic leadership in corporate becoming. This conceptual framework reflects the paradox of corporate becoming and the conditions that govern it, highlights the existential situation facing successive CEOs chartered with sustaining the process, and indicates that strategic leadership of long-lived companies involves an imperfect across-CEO tenures learning process. It offers strategic leadership advice for founders of new companies as well as for CEOs and boards of directors of existing companies who intend to create, run or oversee long-lived companies.","PeriodicalId":309554,"journal":{"name":"CGN: Case Studies (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2016-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127855911","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
T-Mobile’s strategy, decisions and Strategic Alliances were sub-optimal, didn’t result in sustainable growth; and could have resulted in Deadweight Losses (in both the prices of telecomm services and in T-Mobile’s stock prices) and reduced Social Welfare (in terms of increased uncertainty; adverse effects of the stock market; employee morale; and the adverse effects of T-Mobile’s apparent financial distress on its customers, suppliers, shareholders and employees). T-Mobile’s Corporate Governance problems illustrate the weaknesses of Goodwill/Intangibles accounting (IFRS and GAAP), the securities regulation in the US and European Union, Sarbanes Oxley Act, the US FSOC’s “Non-financial SIFI criteria” and the Dodd Frank Act. This article: i) reviews the earnings management, asset-quality management and poor strategic decision making within T-Mobile during 2010-2014; ii) introduces theories of, and biases in Corporate Intrapreneurship, Corporate Governance and enterprise-risk management; iii) characterizes T-Mobile’s problematic strategic alliances; and provides evidence of patterns of failed strategic decisions; iv) provides evidence of, and characterizes Regulatory Failure within the context of Corporate Intrapreneurship and Strategic Decisions; v) summarizes key factors that may affect companys’ receptiveness to corporate venturing proposals.
{"title":"The Case of T-Mobile USA, Inc. & AT&T (2010-2014): Financial Stability, Corporate Governance and Failed Business Processes","authors":"Michael C. I. Nwogugu","doi":"10.2139/ssrn.2628317","DOIUrl":"https://doi.org/10.2139/ssrn.2628317","url":null,"abstract":"T-Mobile’s strategy, decisions and Strategic Alliances were sub-optimal, didn’t result in sustainable growth; and could have resulted in Deadweight Losses (in both the prices of telecomm services and in T-Mobile’s stock prices) and reduced Social Welfare (in terms of increased uncertainty; adverse effects of the stock market; employee morale; and the adverse effects of T-Mobile’s apparent financial distress on its customers, suppliers, shareholders and employees). T-Mobile’s Corporate Governance problems illustrate the weaknesses of Goodwill/Intangibles accounting (IFRS and GAAP), the securities regulation in the US and European Union, Sarbanes Oxley Act, the US FSOC’s “Non-financial SIFI criteria” and the Dodd Frank Act. This article: i) reviews the earnings management, asset-quality management and poor strategic decision making within T-Mobile during 2010-2014; ii) introduces theories of, and biases in Corporate Intrapreneurship, Corporate Governance and enterprise-risk management; iii) characterizes T-Mobile’s problematic strategic alliances; and provides evidence of patterns of failed strategic decisions; iv) provides evidence of, and characterizes Regulatory Failure within the context of Corporate Intrapreneurship and Strategic Decisions; v) summarizes key factors that may affect companys’ receptiveness to corporate venturing proposals.","PeriodicalId":309554,"journal":{"name":"CGN: Case Studies (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2015-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125793033","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
On 15 April 2014, the MTR Corporation Limited (‘MTR’) unexpectedly announced a two-year delay in its Express Rail Link project leading Professor Anthony Cheung, the Secretary for Transport and Housing as well as a non-executive director of the MTR, to express that he was ‘totally caught by surprise’. This article addresses two important and related issues that are raised in the context of company law, namely, the extent to which directors in Hong Kong can delegate their responsibilities and the extent to which they may place reliance upon third parties. This is especially significant following the enactment of the new Companies Ordinance on 3 March 2014 that codified the standard of care expected of directors, which benchmark some of the members of the board of MTR might have breached.
{"title":"When is the Board Accountable for Delegation and Reliance? A Case Study of the MTR Corporation","authors":"Chee Keong Low, T. Low","doi":"10.2139/SSRN.2487710","DOIUrl":"https://doi.org/10.2139/SSRN.2487710","url":null,"abstract":"On 15 April 2014, the MTR Corporation Limited (‘MTR’) unexpectedly announced a two-year delay in its Express Rail Link project leading Professor Anthony Cheung, the Secretary for Transport and Housing as well as a non-executive director of the MTR, to express that he was ‘totally caught by surprise’. This article addresses two important and related issues that are raised in the context of company law, namely, the extent to which directors in Hong Kong can delegate their responsibilities and the extent to which they may place reliance upon third parties. This is especially significant following the enactment of the new Companies Ordinance on 3 March 2014 that codified the standard of care expected of directors, which benchmark some of the members of the board of MTR might have breached.","PeriodicalId":309554,"journal":{"name":"CGN: Case Studies (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2014-08-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116765696","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In the year 2009, then Chairman, Satyam Computers Limited (hereafter Satyam Computers), India confessed to financial irregularities leading to a series of grave felonies including financial and securities fraud of massive proportion. In his statement he confessed that the misstatement in the financial statements had arisen on account of inflated profit over a period of years. This largest financial statement fraud in India, pointed to the shortcomings of the existing disclosure and governance practices of the listed firms. Questions were raised, specifically on the information value of the published financial reports of the listed companies.
{"title":"Satyam Financial Statement Fraud: Regulators’ Dilemma How Much Disclosure is Good Enough?","authors":"S. Mishra, Beenish Hussain","doi":"10.2139/SSRN.2457998","DOIUrl":"https://doi.org/10.2139/SSRN.2457998","url":null,"abstract":"In the year 2009, then Chairman, Satyam Computers Limited (hereafter Satyam Computers), India confessed to financial irregularities leading to a series of grave felonies including financial and securities fraud of massive proportion. In his statement he confessed that the misstatement in the financial statements had arisen on account of inflated profit over a period of years. This largest financial statement fraud in India, pointed to the shortcomings of the existing disclosure and governance practices of the listed firms. Questions were raised, specifically on the information value of the published financial reports of the listed companies.","PeriodicalId":309554,"journal":{"name":"CGN: Case Studies (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2014-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128483361","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
J. Téllez, Laura Esther Jiménez Ferretiz, Juan Carlos López Cabañas
Spanish Abstract: El presente documento da cuenta de las posibilidades de reducir el riesgo en diferentes horizontes de inversion a partir del principio de diversificacion de Markowitz (1952). El estudio se llevo a cabo aplicando el enfoque de la descomposicion por multirresolucion a traves de wavelets, que permite descomponer una serie de tiempo en diferentes escalas de tiempo. Los datos consisten en precios semanales de emisoras Multilatinas mexicanas y brasileras consideradas como las de mayor potencial de crecimiento segun ranking 2011 de Americaeconomia. Los resultados demuestran que la estructura de correlacion entre las rentabilidades de los indices bursatiles y las rentabilidades de emisoras es cambiante en diferentes escalas de tiempo –lo cual refleja oportunidades de diversificacion “temporal”–; lo dicho, en contraste con la correlacion global que refleja una fuerte asociacion en los movimientos de los precios accionarios y con ello elimina las posibilidades de diversificacion. El estudio aporta evidencia adicional a la caracterizacion descrita por Ramsey y Lampart (2007) respecto de las relaciones entre series economicas debido a la presencia de la escala de tiempo. English Abstract: This paper aims to show the possibilities of lowering risk on investment portfolios based on Markowtiz’s (1952) diversification principle. The research was performed by applying the Multiresolution Decomposition (MRD) approach using wavelets, in which time series are decomposed into different resolution levels and each level is associated to a different time-scale. Data consist of selected equity asset prices of Mexican and Brazilian multinational companies considered by 2011 AmericaEconomia as having the highest potential for growth. Empirical results show a varying correlation structure among equity indices and asset returns at different time scales, which may allow for temporal diversification opportunities against a strengthened global correlation which may not permit diversification. This research adds to Ramsey and Lampart (2007) empirical findings about time series behavior whenever times scale is considered in the analysis.
摘要:本文基于Markowitz(1952)的多元化原则，阐述了在不同投资水平下降低风险的可能性。本研究采用小波多分辨率分解方法进行，该方法允许在不同的时间尺度上分解时间序列。根据美国经济2011年的排名，墨西哥和巴西的多拉丁电台被认为是增长潜力最大的电台。结果表明，股票市场指数盈利能力与发行人盈利能力之间的相关性结构在不同的时间尺度上发生变化，反映了“时间”多元化的机会;这与全球相关性形成了鲜明对比，全球相关性反映了股票价格变动的强烈关联，从而消除了多元化的可能性。本研究的主要目的是分析经济序列之间的关系，以确定时间尺度的存在，并确定经济序列之间的关系。本文旨在展示基于Markowtiz(1952)多元化原则的投资组合降低风险的可能性。本研究采用多分辨率分解(MRD)方法，使用小波，将时间序列分解成不同的分辨率水平，每个水平与不同的时间尺度相关联。数据包括2011年美国经济认为增长潜力最大的墨西哥和巴西跨国公司的选定股权资产价格。经验结果表明，股票指数和资产回报在不同时间尺度上存在不同的相关结构，这可能允许暂时的多样化机会，而强化的全球相关性可能不允许多样化。对此研究adds to拉姆齐和Lampart(2007年)经验阿片剂about time series whenever times scale牢房in the behavior analysis。
{"title":"Diversificación Temporal En Carteras De Inversión: Evidencia Con Emisoras Multilatinas (Temporary Diversification of Investment Portfolios: Evidence for Entities Multilatinas)","authors":"J. Téllez, Laura Esther Jiménez Ferretiz, Juan Carlos López Cabañas","doi":"10.2139/SSRN.2539204","DOIUrl":"https://doi.org/10.2139/SSRN.2539204","url":null,"abstract":"Spanish Abstract: El presente documento da cuenta de las posibilidades de reducir el riesgo en diferentes horizontes de inversion a partir del principio de diversificacion de Markowitz (1952). El estudio se llevo a cabo aplicando el enfoque de la descomposicion por multirresolucion a traves de wavelets, que permite descomponer una serie de tiempo en diferentes escalas de tiempo. Los datos consisten en precios semanales de emisoras Multilatinas mexicanas y brasileras consideradas como las de mayor potencial de crecimiento segun ranking 2011 de Americaeconomia. Los resultados demuestran que la estructura de correlacion entre las rentabilidades de los indices bursatiles y las rentabilidades de emisoras es cambiante en diferentes escalas de tiempo –lo cual refleja oportunidades de diversificacion “temporal”–; lo dicho, en contraste con la correlacion global que refleja una fuerte asociacion en los movimientos de los precios accionarios y con ello elimina las posibilidades de diversificacion. El estudio aporta evidencia adicional a la caracterizacion descrita por Ramsey y Lampart (2007) respecto de las relaciones entre series economicas debido a la presencia de la escala de tiempo. English Abstract: This paper aims to show the possibilities of lowering risk on investment portfolios based on Markowtiz’s (1952) diversification principle. The research was performed by applying the Multiresolution Decomposition (MRD) approach using wavelets, in which time series are decomposed into different resolution levels and each level is associated to a different time-scale. Data consist of selected equity asset prices of Mexican and Brazilian multinational companies considered by 2011 AmericaEconomia as having the highest potential for growth. Empirical results show a varying correlation structure among equity indices and asset returns at different time scales, which may allow for temporal diversification opportunities against a strengthened global correlation which may not permit diversification. This research adds to Ramsey and Lampart (2007) empirical findings about time series behavior whenever times scale is considered in the analysis.","PeriodicalId":309554,"journal":{"name":"CGN: Case Studies (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2014-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133885507","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The current model in corporate governance theory is predicated on management by CEO and a team of executives, with directors in charge of oversight and monitoring. Corporate law endorses this model by authorizing directors to supervise management, rather than manage corporations by themselves. This article surveys board oversight at Nortel Networks, the failed Canadian technology giant, to assess the adequacy of the prescription about monitoring in governance theory. The hypothesis about boards and their functions are evaluated with reference to the following events at Nortel: Churn in CEOs and succession planning; Business acquisitions strategy; Accounting restatements and investigation; Business oversight and bankruptcy filing.Insufficient attention to board engagement with business and strategy is identified as a shortcoming in current theory. Boards would be the last line of defence in troubled companies. The Nortel experience suggests that boards that are mostly independent and the bare monitoring function might not be adequate as universal principles, particularly in troubled, under-performing companies. The issue with independent directors and their function as monitors would be especially acute in a corporation facing leadership instability and business challenges, and is in need of re-strategizing for the medium and long term. Situations of this nature illustrate how boards can better serve corporations and their stakeholders through greater engagement with business strategy and being more proactive as necessary.The article proposes the creation of a new board committee to deal with business and strategy. This committee will constantly monitor the business of the corporate enterprise and participate in strategy development. By doing so, boards can contribute to assuring a profitable enterprise that is commercially sound and sustainable. The proposal is based on the current system of board committees and it addresses board responsibility for business and strategy – an issue that receives limited attention in the prevailing framework.
{"title":"Corporate Governance at Nortel – Revisiting Board Functions","authors":"P. Vasudev","doi":"10.2139/SSRN.2420224","DOIUrl":"https://doi.org/10.2139/SSRN.2420224","url":null,"abstract":"The current model in corporate governance theory is predicated on management by CEO and a team of executives, with directors in charge of oversight and monitoring. Corporate law endorses this model by authorizing directors to supervise management, rather than manage corporations by themselves. This article surveys board oversight at Nortel Networks, the failed Canadian technology giant, to assess the adequacy of the prescription about monitoring in governance theory. The hypothesis about boards and their functions are evaluated with reference to the following events at Nortel: Churn in CEOs and succession planning; Business acquisitions strategy; Accounting restatements and investigation; Business oversight and bankruptcy filing.Insufficient attention to board engagement with business and strategy is identified as a shortcoming in current theory. Boards would be the last line of defence in troubled companies. The Nortel experience suggests that boards that are mostly independent and the bare monitoring function might not be adequate as universal principles, particularly in troubled, under-performing companies. The issue with independent directors and their function as monitors would be especially acute in a corporation facing leadership instability and business challenges, and is in need of re-strategizing for the medium and long term. Situations of this nature illustrate how boards can better serve corporations and their stakeholders through greater engagement with business strategy and being more proactive as necessary.The article proposes the creation of a new board committee to deal with business and strategy. This committee will constantly monitor the business of the corporate enterprise and participate in strategy development. By doing so, boards can contribute to assuring a profitable enterprise that is commercially sound and sustainable. The proposal is based on the current system of board committees and it addresses board responsibility for business and strategy – an issue that receives limited attention in the prevailing framework.","PeriodicalId":309554,"journal":{"name":"CGN: Case Studies (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2014-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121022401","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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