Evaluating Leadership, Governance, and Ethics at Disney Company

This report provides an in-depth analysis of executive leadership and governance within The Walt Disney Company. It examines the organizational culture, the role of board members, and evaluates corporate governance frameworks, including the Audit Committee, Compensation Committee, and Governance and Nominating Committee. The report also critically evaluates the Remuneration Committee’s role, discussing fixed remuneration, bonuses, and share options. Furthermore, it assesses the Board’s responsibility for risk management, focusing on the Enterprise Risk Management Integrate Framework, including internal environment analysis, objective setting, and risk response strategies. The report also critically evaluates the leadership capability within The Walt Disney Company,leadership for performance approaches that can enable Disney to achieve its key objectives, evaluating key financial decisions made by Disney’s leadership along with review of Disney’s recent financial performance, critically evaluating ethical decisions made at Disney along with recommendation on how current ethical challenges can be effectively managed. Desklib offers this assignment solution and many other resources for students.

Executive
Leadership and
Governance

Contents
INTRODUCTION.......................................................................................................................................3
MAINBODY...............................................................................................................................................3
PART – A....................................................................................................................................................3
Discussing organizational culture and the role of the board members.....................................................3
Evaluating corporate governance.............................................................................................................7
Discussing regulatory landscape and management of risk.......................................................................9
CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................13
INTRODUCTION.....................................................................................................................................14
MAINBODY.............................................................................................................................................14
PART – B..................................................................................................................................................14
Critically evaluating the leadership capability within The Walt Disney Company................................14
Leadership for performance approaches that can enable Disney to achieve its key objectives..............17
Evaluating key financial decisions made by Disney’s leadership along with review of Disney’s recent
financial performance............................................................................................................................19
Critically evaluating ethical decisions made at Disney along with recommendation on how current
ethical challenges can be effectively managed......................................................................................22
CONCLUSION.........................................................................................................................................23
REFERENCES..........................................................................................................................................25

INTRODUCTION
Leadership refers to the ability of an individual of a particular group of individuals that
possess the ability to influence and guide other members of an organization. Leadership in
governances is the willingness along with the ability to take effective ownership within a part of
an organization in order to make optimal decisions that will provide business success as well as
growth in the long-term. The following report is based on The Walt Disney Company which is
an American multinational entertainment and media conglomerate and headquartered in
Burbank, California, United States. The following report will highlight the organizational
culture along with the role of board members. In addition to this, the report will focus on
evaluating corporate governance along with effective discussion on regulatory landscape and
management risk.
MAINBODY
PART – A
Discussing organizational culture and the role of the board members.
Leadership style at The Walt Disney Company:
Leadership is a crucial aspect of management function that provides assistance in
directing an organizations resource in order to achieve efficiency along with the ability to
achieve goals. Effective leadership of an organization is able to provide clear direction to
employees along with optimal motivation and guidance in achieving mission. In context to The
Walt Disney Company, the leadership within the organization plays an essential role as it allows
the management to motive its employees in an effective manner. In addition to this, the
leadership help the business to provide structured guidance to their employee that help them
achieve organizational goals and objectives (Maldonado., 2017). Moreover, the leadership within
the organization helps in development of confidence among employees and builds a positive
working environment. Given below is the leadership style utilized at the organization:

Autocratic leadership style:
This style of leadership style is also knows as authoritarian leadership and is
characterized by an individual who has control overall all major decisions and input within
group. The leaders that adopt this style of leadership take decisions based on their own ideas
along with judgments. In context to The Walt Disney Company, this style of leadership allows
the management to take quick and effective decisions especially in stress filled situations. This
allows the management to be pro-active and take decisions that will allow the organization to
rectify issues in a time efficient manner. In addition to this, this leadership style allows the
management to develop a clear chain of command that helps the mangers and board members to
oversee crucial operations of the organization which allows in high level of performance along
with productivity.
Organizational culture of The Walt Disney Company:
The organizational culture at The Walt Disney Company is oriented towards
entertainment as the company’s segments are strategically managed in order to achieve
entertainment within products for customers. This organizational culture is based upon the
corporate mission and vision statement of the company. Given below are key elements of the
organizations culture at The Walt Disney Company:
Innovation:
This aspect of organizational culture helps the management to ensure that they are able to
instill innovation within their business practices in order to develop innovative product and
service for their customers and ensure that all their business practices as effective as well as
efficient (Bush, Bell and Middlewood. eds., 2019).
Quality:
The management focuses upon effective quality of not only products and service but
maintain quality within their business operations. This allows the organization to effectively
maintain high level of productivity within the organization and attain growth.
Communication:

High level of communication is a primary part of the organizational culture at The Walt
Disney Company. It allows the management along with board members to develop effective
communication channels what reduce changes of miscommunication and keep business
operations optimal.
Role of board members at The Walt Disney Company:
The role of board members of an organization vary on the bases on the organizations
overall purpose and vision. The board members help the organization to attain growth and evolve
as well as are responsible for reviewing the changes and making adjustments that are in the best
interest of the organization. Given below are the roles of board members in context to The Walt
Disney Company:
Hiring and monitoring:
This is a crucial role for the board members at The Walt Disney Company as it allows
them to ensure they are able to hire talented as well as skilled employees for their organization.
This allows the members to have a productive and high performing workforce.
Financial oversight:
The board members are able to provide effective insight over the financial resource of the
organization. In addition to this, it allows the members to take necessary steps in order to
maintain growth of the organization relative to long-term goals.
Create strategic plan:
The boards of members play a crucial role when developing strategy plans for the
organization. It allows the members to instill their mission and vision of the business and
develop plans that are aligned with the structure of the business.
Manage resource responsibility:
The board members oversee the overall resources of the organization and it is their main
role to allocate resource in an effective manner. It allows the members to attain high level of
productivity within their business operations.

Annual report of The Walt Disney Company:
The annual report of the organization provides information on the company’s mission and
history along with summarizing the organizations achievements in the past year. In context to
The Walt Disney Company, the annual statement of the business helps the board members to
understand various aspects of the organization. This allows developing future plans along with
strategies to attain growth and success. Given below are some statements included in the annual
report of The Walt Disney Company:
Balance sheet:
This statement of the annual report summarizes the financial position of the organization.
It allows the board members to evaluate the list of assets along with liabilities and equity owned
by various stakeholders (Mallinson and Suter., 2017).
Income statement:
This statement within the annual report of the Walt Disney Company summarizes the
amount of money the organization has earned and the amount that is spent during the accounting
year. It allows help the board members to derive the revenue achieved from the sales of products
and services along with nay capital gain.
Equity statements:
This statement allows the board members to understand retained earnings and helps in
understanding how investment in the business and its net income for the accounting period have
performed. It also lists any dividends the organization has paid to its shareholders to arrive at the
closing equity figure.
Evaluating corporate governance.
The Corporate Governance framework is defines as the rules along with procedures
through which the decisions in an enterprise are made along with how they are controlled. In
context to The Walt Disney Company, the organization believes in effective board governance
and that it is an integral part in achieving long-term shareholder value. The organization sis

committed to governance policies and practices that assure shareholder interests are represented
in a thoughtful and independent manner. The organization has three main companies in its
corporate govern ace framework which are elaborated below:
https://thewaltdisneycompany.com/app/uploads/Governance.pdf
Audit Committee:
The objective of Audit Committee within the corporate governance framework at The
Walt Disney Company is to provide effective oversight of the overall financial reporting process
of the system of internal control and compliance with specific laws and regulations.
Compensation Committee:
This committee in the corporate governance framework of The Walt Disney Company is
responsible for ensuring that the organization is able to report on its governance performance
through transparency through effective channels. The board members focus on addressing
relevant compliance and regulatory topics.
Governance and Nominating Committee:
This particular committee in the corporate governance framework of the organization is
focused in identifying the best candidates for each department of the organization. This process
of the committee is oriented towards being law abiding when identify suitable candidates for
each slot within the organization (Crosby and Bryson., 2018).
Critically evaluating the Remuneration Committee’s role of the organization:
The primary objective of Remuneration Committee is to develop an appropriate rewards
policy that attract as well as motivates executives to achieve that long-terms interests of
shareholders. The committee ensures transparency to shareholders and set by individual’s whit
no personal interest in the outcomes of the committee decisions. In addition to this, the
committee monitors the level and structure of the remuneration of senior managers. Given below
are various remuneration packages offered by the remuneration committee at The Walt Disney
Company:
Fixed Remuneration:

It comprises of basic salary and is usually superannuation’s along with fringe benefits, in
accordance with the terms of the executive director’s contact of employment. This remuneration
is not linked with the performance of the company and is generally related to the market practice
relative to similar peer companies. Although the committee may need to take into account
various levels of market of pay for the executive director’s home domicile if they recruited from
offshore (Knapp., 2018).
Bonus:
The executive directors of the organization may be paid by cash bonuses from their
excellent performances along with a portion of it being in the form of deferred shares. It allows
keeping the motivation level of shareholder high and ensures high level of productivity as well a
performance within the organization. In addition to this, the bonus acts as a tool to keep the
executive directs motivated in achieving the organizational objects that are included in their
mission and vision statement.
Share options:
This aspect of the remuneration committee provides an option for the rights to purchase
shares at a specific exercises price at a specific date in the future. Share options give directors the
incentive to manage the company to realize a share price increases. The share options help in
aligning the executive director’s goals with shareholders which provide assistance in overcoming
organizational.
Discussing regulatory landscape and management of risk.
Evaluate the Board’s responsibility for risk management:
It is crucial for board members of an organization to factor risk as an integral part of
organizational strategy. The business operations have become complex as well as litigiousness
that result in the development of issues that have negatively impact the operations of the

business. Give below are the aspects on how Board members of The Walt Disney Company are
responsible for risk management:
Enterprise Risk Management Integrate Framework:
The board members at The Walt Disney Company utilize this model for their risk
management as it helps them to develop a comprehensive risk management plan which is
approachable by various components relative to how risk interacts with their organization. Given
below are the companies of this framework in context to the organization:
Internal environment:
This aspect helps the board of members to analyses their internal environment in order to
asses risk within the organization through identification of their threats and weakness. It allows
the members to develop suitable plan to negate risk.
Objective setting:
The members of the board are able to establish optimal objective that are aligned with
their strength in order to negate threat to the operation of the business. It allows the members to
effective develop plans for growth and success (Cameron and Orrell., 2021).
Risk response:
This aspect of the framework helps the members to develop optimal strategy in order to
response to identify risk in an effective manner. This help in ensuring that the organization is
able to negate threats in an efficient manner.
Control activities:
This component of the framework allows the board members to effectively control all
activates that are necessary related to avoiding risk. It allows the members to develop effective
plans for their risk management process.
Monitoring:

This aspect of the framework allows the board members to effective monitor their
strategies and plans relative to risk management. This helps the members to evaluate the overall
performance of their plans and make necessary change in order to further decrease the level of
risk that the organization has encountered.
Analyzing and evaluating the risk faced by Disney:
There are various risks that an organization can face in its business environment. This is
due to various dynamic factors that can impact the overall functioning of an organization. In
context to Disney, it is crucial for the board to identify and analysis the major risk their
organization is currently encountering or will encounter in the future in order to develop suitable
plans along with strategies to overcome complex situations. Given below are some of the risks
faced by Disney:
External factors:
The organization is at a constant risk due to various changes in the external environment.
For example the situation of COVID -19 had a major impact on the overall business operations
of the organization due to close of its amusement parks and other business operations relative to
the lockdown restrictions.
Market competition:
The market is filled with various other companies that are similar to Disney. This
increases the overall competition in the market and constricts the market share which makes the
market highly competitive. This is a potential risk for the organization as it needs to develop its
business operations in order to gain competitive advantage.
Isolated business:
The organization functions in only developed countries and undermines the capacity of
other regions. This is a risky move as various other organizations have expanded their business
in untapped market in order to gain larger market share. The organization is at a risk or loosing
large market share to their competitors.
Recommendation to resolve risk :

Given below are suitable recommendations relative to the risk faced by Disney. These
recommendations will allow the boar to effective take necessary steps in order to eliminate the
risk in an effective manner. Given below are recommendations relative to the risk faced by the
organization:
Development of effective policies:
It is crucial for the organization to develop suitable policies and strategies in order to
become pro-active relative to the impact of external business environments. This will help the
organization to negate the negative impacts of business environment and help the board to
develop strategies to avoid complex situations and gain competitive advantage.
Development of innovation:
It is vital for the boar to focus on promoting innovation within its business products and
services in order to differentiate themselves form their competitors in the market. It will allow
the organization to gain competitive advantage relative to their competitions in the market.
Market development:
The board of the Disney should focus on evaluating various market expansion strategies
in order to enter untapped market. This will help the organization to avoid loss of market share
and help the business to increase the generation of profitability and attraction of more customers.
CONCLUSION
From the above report it has been concluded that, the culture within an organization plays
a crucial role in influencing its business operations. In addition to this the leadership of the
business combined with organizational culture impacts the overall functioning operations of an
organization. Moreover the report was also able to conclude the vital role of board members and
their respective responsibilities. Furthermore, the report was able to provide effective governance
framework along with critically analyzing the remuneration committee’s role within the
organization. The report was also able to effectively conclude the importance of Board’s

responsibilities relives to risk management along with various risk faced by and organization and
how it can overcome the complex situation to suitable recommendations.