Corporate governance and ethical decision ion making Essay

Corporate governance and ethical decision ion making - Essay Example The board of directors, as the top management team, therefore plays a major role in defining a company’s corporate governance as well as the governance’s effectiveness in achieving the company’s objectives. Subject to legal provisions and a company’s memorandum, the directors guide their organizations through offering directives as the top managerial decision making organ. Simpler forms of businesses such as partnerships or limited liability partnerships and companies may have their top management roles vested in teams or persons (Kazmi, 2008). The roles and responsibilities of an organization’s top management centers on making macro organizational decisions that are then passed to line managers for implementation. One of the roles of the top management is developing an organization’s missions and values that define the organization’s overall direction. The management also determines major strategies to be adopted and lays down operational plans. Similarly, the top management acts as a supervisory body to â€Å"monitor and control† the organization’s managers and other officers besides evaluating the organization’s position and making recommendations to owners and other stakeholders (Kazmi, 2008, p. 398). In a small laundry repair business where a father is the technician and his son is the administrator, the son assumes top management responsibilities to make strategic decisions, communicate the decisions, and supervise the father and other employees, and report recommendations to the stakeholders (Kazmi, 2008). An organization’s top management, whether board of directors or individuals, are in their roles faced with social responsibility, which is the moral obligation to maximize benefits of all stakeholders to a strategic decision. The management’s decision should therefore consider possible adverse â€Å"economic, legal,