A corporate company is defined through the distribution of responsibilities among shareholders, the board of governors, and management. A corporate type of company is often organized in a hierarchical structure, which involves decision-making, and authority to manage the business affairs of the corporation by the board of directors within the company. However, managing everyday operations of the industry is often a complicated task for board of directors; thus, the corporate law allows governors to appoint a manager who will run the company’s daily activities (Shaner, 2013). Therefore, managers have the duty of conducting and running the corporates entity’s daily activities and decision-making, even though the board of directors retains all the powers over the company. The board is the highest decision-making unit in the corporate body.
Similarly, managers oversee the company’s progress and report to the board of directors any set-back that the company might face. Also, to uphold their responsibilities, managers need to be influential and motivate employees; for example, managers should reward employees for being more productive within the corporation (Shaner, 2013). Consequently, managers often violate their roles within the company; for example, many managers make decisions, which serve self-interest. In the US, for instance, many agencies reported that managerial decision-making in a company structure have raised concerns about opportunistic officers. Therefore, managers omit their responsibilities and violate the duties assigned to them by the board of governors.
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The US federal government has developed enforcement rules fulfilling the responsibilities of a corporate manager. For instance, US federal laws state that each head of a corporation shall be responsible for information on management activities to ensure efficiency, effectiveness, and employees’ productivity within the corporation. Information within any given company is significant because it keeps employees informed on changes that might have occurred in the corporation. Also, the manager has to keep the board of directors informed to allow more support from the stakeholders.
References
Shaner, W. (2013). The (UN) Enforcement of Corporate Officers’ Duties . Retrieved from https://lawreview.law.ucdavis.edu/issues/48/1/Articles/48-1_Shaner.pdf
