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Governance Structure of Maxwell Communications
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Added on 2020-02-05
Governance Structure of Maxwell Communications
Added on 2020-02-05
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Table of contentsIntroduction......................................................................................................................................31. Discussing theories along with the strengths and weaknesses. Also pointing out the best theoryfor Maxwell communication with justification...............................................................................3Agency theory:.............................................................................................................................3Strengths:..................................................................................................................................3Weakness:.................................................................................................................................3Stakeholder theory:......................................................................................................................4Strengths:..................................................................................................................................4Weaknesses:.............................................................................................................................4Stewardship theory:......................................................................................................................4Strength:...................................................................................................................................5Weaknesses:.............................................................................................................................52. Governance structure of Maxwell communications....................................................................5Critical Evaluation of the Risk Management Policy.......................................................................6Pros and Cons of the Risk Management Policy...............................................................................63. Discussing the extent fulfilment of legal requirements based on Turnbull reports and providingrecommendations.............................................................................................................................71. Risk management –..................................................................................................................72. Health and safety standards-....................................................................................................84. Discussing remuneration strategy of directors with reference to performance and pay..............81. Consistent performance reward-..............................................................................................82. Compensation based on performance –...................................................................................93. Total competitive remuneration –............................................................................................94. Transparency and simplicity –.................................................................................................9Conclusion.......................................................................................................................................9References......................................................................................................................................112
Introduction Corporate governance is considered as the main role in firm drive of the performance of thecompany. The way on which corporation policies are governed for proper managing of thecorporation can be termed as corporate governance. Corporate governance intended mostly onlyto increase accountability and be ready for all kind of massive disasters, which can occur in anorganisation. Every company or organisation needs a good process for proper running of theorganisation by implementation of corporate governance in an organisation. Corporategovernance is not only just a structure rather it also consist of various obligations and duties,which are responsible for proper control and correct direction of any corporation.1. Discussing theories along with the strengths and weaknesses. Also pointing out the best theory for Maxwell communication with justification Agency theory:Agency can be considered as a contract in which either one agent or more are involved who areengaged with other agent in order to perform any particular service or task and on behalf of theminvolves any decision-making authority. As illustrated by Allen et al. (2017, p.14) Agencytheory simply elaborates about the best way to organize where one team determines the taskwhile the other team performs the given task. In this theory, principal hires agent to perform thetask or the task that a principal are not able to perform.Strengths:Agency theory offers reliable explanation in case of obedience as it easily helps to explain thereality of life situation and thereby, following all orders from authority (Bair and Palpacuer,2015, p.15). Agency theory is also useful during exercises of training of people who can be madeaware of agent so that the responsibility can be taken of their own actions.Weakness:Agency theory has a weakness as it is an anti social and the agency theory can be negativelyresult in manipulation of agentic state which means knowledge can be used to perform negativetasks (Goh and Gupta, 2016, p.384). Agency theory has also a weakness on considering its3
ethical implications, which means removal of personal responsibilities especially from whocommit to perform even under pressure and thus resulting on an excuse of individuals as if theyare simply following the orders.Stakeholder theory:Stakeholder theory states that any organisation or corporation owes responsibility to wider thegroup of stakeholders. As explained by Han et al. (2015, p.417) A stakeholder can be termed asany group or person that can be affected or affected by the nature of actions of the business.Stakeholder includes employees, suppliers, customers, creditors and even the competitors.Stakeholder theory is an important part of corporate governance, in which it understands thevarious responsibilities of any organisation or corporation in today's world, whether they may beeconomical, legal, philanthropic or even ethical.Strengths:Large number of key benefits is assured on including stakeholder theory in various processes ofdecision-making. Stakeholders have different point of view in any kind of issues and evenstakeholders guide to assist with decisions or projects (Ionescu et al. 2016, p.118). Involvingstakeholder theory not only builds up the trust that ultimately can lead to higher consequencesregarding project or report of final decision.Weaknesses:Stakeholder theory has a weakness that it does not provide normative identifying foundation,which can also be asserted by stakeholder of the companies. Stakeholder theory is unable toexplain its definition for few animals product based companies as animals are considered asstakeholders according to the theory, which is meaningless without having any directrelationship with the company.Stewardship theory:Stewardship theory is mainly helpful in order to contrast with two popular governance styles thatis stakeholder theory as well as agency theory. According to Jianxiang, (2014, p.18) Stewardshiptheory has a single objective and that is to achieve shareholder satisfaction. Stewardship theory4
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