A case study on how the leadership crisis at Tyco was generated by an irresponsible management that allowed several boardmembers to embezzle company funds.
Abstract The paper discusses the leadership crisis at Tyco which was generated by an irresponsible management that allowed several boardmembers to embezzle company's funds. The paper states that when the dubious actions came to light, the former CEO and CFO were arrested and several other members were replaced. The paper then relates that the company was severely affected, losing billions of dollars. The paper also relates that, as a result of the previous leadership scandal and as a means of preventing this from ever occurring again, Tyco adopted a Guide to Ethical Conduct and all employees are expected to attend ethics courses at least once a year. The paper concludes by noting the resultant success of the company due to restructuring by the new board.
From the Paper "Once the scandal had broken out, the management board at Tyco pressured the executives facing criminal accusations to resign. Furthermore, the company filed lawsuits against several former board members, including Swartz and Kozlowski. Edward Breen was appointed as CEO. The new executives had observed and criticized the business behaviour of their predecessors and had sworn to not follow in their footsteps. The new restructured board decided to implement a transparent policy and to promote a more conservative accounting system.
"The recent actions implemented by the new board are aimed to restore the population's confidence in Tyco. Currently, the strategies developed and the promises made are clearly insufficient to regain the lost trust; and the public's reticent response to the measures taken is understandable. The new board is charged with the difficult task of repairing the damage done by their predecessors, clearing the company's name and proving their worth. The problem now is potentially just a matter of time, because a correct and transparent stance will eventually clear the company's image, but for the short term, the memory of the accounting frauds still keeps investors and stakeholders away."
The following in-depth paper discusses ways in which schools can improve their own public confidence in a specific school district including communication between schools and community.
Abstract This report discusses schools and community relations with reference to four different models proposed by Grunig and Hunt for public relations: Press agency/publicity, information, the two-way asymmetric model and the two-way symmetric model. The author contends that it is imperative for a school board to work for the betterment of students. This paper stresses the importance of having the students' interests first, when coming up with ways to improve community relations. It also deals with ways in which to improve relations between staff and boardmembers, parents and children by building forum structures in order to discuss problems. In addition ways in which to ensure quality education and strict discipline are also proposed amongst other issues.
From the Paper "The schools in the district should do an effective job and let the public know about the success and challenges faced by the school. The confidence of the public in the schools should be increased, by encouraging more residents of the school district to participate in the school decisions. It was determined that education is rated as the highest concern by the public-higher than crime and taxes. The schools should make the public aware of the difficulties experienced in the classroom such as: disruptive behavior by students, students disrespect for authority and resistance of the student towards learning. Regular school district meetings may help the school get suggestions from the public in handling these problems. Schools should be personalized to suit the community that it serves. All involved should be aware of their individual roles in the operation of the various schools in the district. Educators should collectively try to gain the public and legislative confidence and support. Educators should stop fighting among themselves and form better working relationships with the business community in the area."
Abstract This paper introduces the topic of the Federal Reserve Board. It looks at how the Federal Reserve Board is an integral part of the Federal Reserve System of the United States and how it creates and maintains much of the monitorial policy of the nation. The boardmembers are responsible for the monetary health and security of the country and, therefore, shoulder a huge responsibility to the country and to the people.
Outline
Introduction
The Early Fed
The Banking Act of 1935
The Fed's Power
Alan Greenspan's Influence
What's Ahead For the Fed
From the Paper "The Fed controls finances in the United States and abroad in a number of complex ways from interest rates to the global banking industry. In fact, its name stems from the fact that member banks must keep some of their deposits in "reserve" to ensure fiscal health, and this reserve is often held by the Federal Reserve Banks across the nation. Banks who do not keep enough reserves face stiff penalties from the System (Martin 159). This is just one area where the Fed exerts its vast powers over the nation's banks, and ultimately the nation's economic health and well being."
A review of how the Sarbanes-Oxley Act keeps the corporation's audit committees on track so that illegal activity cannot cause the business financial distress.
Abstract The paper states that the Sarbanes-Oxley Act on corporation's audit committees has become more structured. The paper discusses that the audit committees should be composed of individuals who are not compensated for their service on this committee or involved in any other conflict of interest with any entity doing business with the organization, since most nonprofit organizations have volunteer boardmembers. This paper demonstrates the many changes that an audit committee will experience through the Sarbanes Oxley Act in order to be successful.
From the Paper "From there, the board and senior management team have been trying to relocate the company into a better position so that the future of the company will be secured. This promising future will be able to support jobs that are available at the present time and create others. "The audit committee, primarily composed of members of the board of directors, plays a critical role in providing oversight over and serving as a check and balance on a company's financial reporting system. The audit committee provides independent review and oversight of a company's financial reporting processes, internal controls and independent auditors. It also acts as a forum separate from management in which auditors and other interested parties can candidly discuss concerns" (Sarbanes-Oxley Act: Audit committee effectiveness = good company management). Along with that, the union has bees trying to characterize the employees in a losing situation due to the fact that it has not a part of the decisions of the senior management team. In the past, they have given up certain benefits to create an atmosphere of give and take; however they have been feeling that they have been taken advantage of by not being included in the current company decisions."
Tags: organization, nonprofit, organizations, volunteer, board, members
Abstract The paper examines the article "Peltz Aims to Expand, Control Wendy's Board" by Janet Adamy, that discusses Wendy's International's financial shortages and the potential purchase of Wendy's from Nelson Peltz's Trian. The paper analyzes Wendy's from a financial perspective and the possible implications of a merger with the Trian company.
From the Paper "Wendy's International Inc. is currently facing several difficulties due to increased competition and lack of new products. The company has been struggling to increase its sales and profits, but has managed to do little in this direction. The directors at Wendy's are analyzing a wide array of possibilities to resolving the crisis, such as recapitalization or changes in the business strategy. The recapitalization alternative revolves around a potential purchasing of Wendy's by international corporation Trian."
Tags: Trian, shares, capital, debt, board, members
Abstract Racial segregation in the 50s was a problem in public schools. "Brown vs. Board of Education" was the beginning of the Supreme Court recognizing that all people are equal.
Abstract This paper outlines the Supreme Court judges that heard the "Brown vs. Board of Ed" case in the 1950s. It includes their backgrounds in terms of upbringing, past jobs, and views and how they were expected to vote in what turned out to be a unanimous decision.
From the Paper "Because of the distinctive backgrounds and dynamics that existed between the justices on the Supreme Court from 1952 to 1954, a unanimous decision declaring segregated public schools to be unconstitutional was issued in the case of Brown v. Board of Education. Although it has been argued that Brown failed to institute actual societal change, it still is considered to be a landmark decision from a legal perspective. However, its legal impact would not have been as enduring if the justices who decided the Brown case had been divided in their decision. Because of this, it is important to understand the factors that resulted in a unanimous decision. The two central factors to be considered are the unique life experiences of each justice and the desires of both Justice Frankfurter and Chief Justice Warren to deliver a united opinion to the American people."
Abstract This is a research paper testing the hypothesis that fraternity members increase their drinking levels to a greater degree than non-members. The evidence collected suggested that alcohol education targets fraternity members.
From the Paper "Alcohol use and abuse on college campuses has been a very serious concern among American colleges (Wechsler, Dowdall, Maenner, Gledhill-Hoyt & Lee, 1998). In 1993, 1997 and 1999, large national studies on college students? drinking behavior were conducted by the Harvard School of Public Health College Alcohol Study (CAS). These studies, which surveyed students at 140 colleges and universities, found that approximately two out of five college students were binge drinkers. The definition of "binge drinking" applied to the studies was "the consumption of five or more drinks in a row for men, and four or more for women" in the previous two weeks. (Wechsler, Eun Lee, Kud & Lee, 2000). Alcohol-related behavioral problems involving a fraternity have been even more prominent (Hirschorn, as cited in Creeden, 1988)."
Abstract This paper explains that many of the corporate requirements came about because the Amex, the NASDAQ and the NYSE wanted to ensure the high quality management of the Board of Director committees. The paper then discusses how board committees are structured, which ones are the most important or significant and which ones are the most likely to be needed based on the type of company. The paper examines several types of board committees, including the audit, compensation, nominating, and other committees. The paper also examines the functions of members of non-profit Board of Directors.
Table of Contents:
Legal/Statutory Basis and Terms of Self-Regulation of Board Committees in the USA
The Board Committees in the USA
Audit Committees in the USA
Compensation Committees in the USA
Nominating Committees in the USA
Other Board Committees in the USA
Advantages, Disadvantages, and Problems of Board Committees in the USA
From the Paper "The standards are designed to show not only that the particular exchange is high quality, but also that it is safe and can be trusted . There is some difficulty with this right now because of the various scandals that took place in accounting firms such as Enron, and many of the changes that are taking place has to do with just such problems. Currently, the corporate governance requirements are a mixture of good governance and competition."
Abstract This paper describes the circumstances of the scandal that arose around Patricia Dunn, chairman at Hewlett-Packard, when she had to investigate why secrets regarding corporate strategy began appearing in the press. The author explains that when evidence pointed to boardmember Jay Keyworth as the source of many of the leaks to the press, his friend and fellow boardmember Tom Perkins took offense at Dunn and launched a campaign to discredit her. The author concludes that it seems that the charges brought against Dunn are largely the result of Perkins's discrediting campaign against her.
From the Paper "Someone from the board had been leaking valuable company info to the press - not only about HP corporate strategy, but about whom the board was considering for CEO as well as the company's interest in buying another tech company. The majority of the board asked Dunn to investigate the source of the leak. The investigation went a bit too far, and Dunn was eventually indicted on charges of pretexting - that is, using false pretenses in order to obtain the personal information of board members and journalists connected with the leaks."
Tags: unethical trust journalist illegal, Wall Street Journal, e-mail
Abstract This research paper focuses on a fundamental element of the corporate governance process, the board of directors. In particular, the research addresses the question whether boards of directors as the "apex" of the organization increase firm value.
This paper also outlines the research proposal which seeks to explore whether good board governance leads to higher common stock returns for Swiss companies. The research involves the construction of a survey-based "Board Index" using provisions based on a Code of Best Practice portfolios consisting of companies that conform with the code and others that do not conform to best practice are constructed and then stock-returns are compared.
1. Abstract
2. Introduction
3. Literature Review - Part I
3.1 The Concept of Firm
3.2 The Agency Problem
3.3 Definition of Corporate Governance
3.4 Mechanisms of Corporate Governance
4. Literature Review - Part II
4.1 Board of Directors - Introduction
4.2 Models of Boards 4.2.1 One-tier vs Two-tier Board Model
4.2.2 The Case of Switzerland
4.3 CEO Duality
4.4 Outsider Directors / Board Independence
4.5 Board Size
4.6 Board Committees
4.7 Interlocking Directorates
4.8 Multiple Board Appointments
4.9 Frequency of Board Meeting
4.10 Board Diversity
5. Literature Review - Part III
6. Regulatory Development
6.1 Overview
6.2 The Case of Switzerland
6.3 Conclusion
7. Objectives of the Proposed Research
8. Research Design
8.1 Introduction
8.2 Data
8.3 Board Index
8.4 Board Impact on Firm Valuation
8.4.1 Performance Measure
8.4.2 Long-term Equity Return
8.5 Current Board Structure
8.6 Potential Research Problem
8.7 Ethical Issues of the Proposed Research
9. Expected Research Outcomes
From the Paper "Nevertheless, corporate boards are the focus of many attempts to improve corporate governance. Regulators and shareholder advocates in the US have called for smaller boards with greater outside representation among US corporations (The Business Roundtable 1997). This movement toward specific board guidelines, typically calling for greater independence, independence outside representation, and requirements that boards have audit committees that consist only of independent outside directors, is a characteristic of the Codes of Best Practice issued in many countries (Denis & McConell, 2003). In Switzerland, for example, the "Directive on Information Relating to Corporate Governance" and the "Swiss Code of Best Practice" have become a listing requirement on the Swiss Stock Exchange as of July 1, 2002. Yet despite the extensive research, there is no clear empirical evidence that shareholders benefit from these regulations.
The proposed research addresses a number of important issues relating to corporate governance, board of directors, firm value and the relationship between these in Switzerland. Foremost, among these research questions is: Do well-governed boards of directors, measured in regulator's terms, increase long-term equity returns?
A test can be carried out in order to evaluate the hypothesized relationship between board governance quality and firm valuation; a board-index may then be constructed based on a survey of all listed companies on the Swiss Stock Exchange (SWX) (Beiner, p. 3). Based on this index, portfolios can be built, consisting of companies with well-governed or poorly governed boards. In addition, following the portfolios, a comparison of their long-term equity returns may be done (Beiner, p. 3)."
This paper discusses the Federal Reserve Board, a primary part of the Federal Reserve System of the United States and its effect on the economy of the United States.
Abstract The paper explains that, in 1913, the Federal Reserve System, an integral part of the United States economy, was created by the Federal Reserve Act to deter the periods of financial panics, which were occurring in the United States. The author points out that managing the nation's monetary policy is the most important responsibility of the Board of Governors. The Board has three tools to conduct monetary policy: open market operations, reserve requirements, and the discount rate. The paper relates that the increase in the federal funds rate is the Federal Reserve's way of controlling inflation because, by raising the cost of borrowing money when there is too much money in circulation, the Federal Reserve's intention is to slow the economy down.
Table of Contents
Introduction
History
The Federal Reserve Board Responsibilities of the Federal Reserve Board The Fed and the United States Economy Today
Conclusion
From the Paper "The Federal Reserve Board was established as a federal government agency and is the governing element of the Federal Reserve System. The Federal Reserve Board, or the "Board of Governors," is made up of seven members who are appointed by the President and confirmed by the Senate. Once confirmed by the Senate, the length of a term for a Board member is four-teen years. No Board member may be reappointed to the board. Every four years a new Chairman and Vice Chairman are also appointed by the President and confirmed by the Senate."
Abstract This paper analyzes the group dynamics of school boards through a general understanding of the group dynamics of a school board and a case study example of a particular school board. The writer states that this work is especially important given the current climate of public and institutional demands for sweeping change within the whole public school system.
From the Paper "It is clear through the evaluation of current local political issues in almost any community that the tasks facing school boards are varied and often extremely challenging. The tasks assigned the group include issues associated with curriculum, safety, infrastructure and last but certainly not least both long and short-term fiduciary concerns. (Hamilton & Reutter, 1958, p. 117) One example is noted in the 1994 Kirst analysis on school board reformation, "School boards play an executive role when they implement policy. Many school boards approve not only the budget, but also almost every expenditure and contract for services?.Many boards approve the appointments of principals, vice principals, categorical program administrators, and even teachers." (Kirst, 1994) This example represents an idea of just one of the seemingly all encompassing functions of the local school board."
This paper reviews James T. Patterson book, "Brown vs. Board of Education: A Civil Rights Milestone and its Troubled Legacy", about the aftermath and consequences of the Supreme Court ruling.
Abstract This paper discusses James T. Patterson's "Brown vs. Board of Education: A Civil Rights Milestone and its Troubled Legacy", which utilizes the work of commentators, critics, and academics to assess the educational changes since Brown vs. Board of Education declared that 'separate but equal' has no place in the schools of the United States. The author relates that Patterson includes the Civil Rights movement, the Martin Luther King, Jr. and John F. Kennedy assassinations, racial discord and the following enactment of the Civil Rights Act of 1964, the effects of Johnson's War on Poverty, and the impact of the current rise in conservative politics. The paper contends that Patterson presents his argument from the legal perspective, which seems to limit his position in a biased manner.
From the Paper "Patterson takes the point of view of "most Americans", which seems somewhat ingratiating and one sided. "Most Americans" believe that the Constitution stands for a basic set of liberties that are 'self evident' as well as in the best interests of its citizens. The Bill of Rights and other amendments were legislated as a means of guaranteeing the rights meant to be included within the Constitution by the framers. Time, history and social experiences have led to the need to have these documents interpreted and, therefore, questioning the validity of public opinion as indicated by "most Americans"."
