Purpose: Corporate governance is an important area of great interest to researchers,
stakeholders and the general public. Nowadays, there exists an increased concern
about the effectiveness of the board within corporate organizations, due to large
corporate scandals, which pointed out the inefficiency of monitoring boards and the
overseeing of the board’s decision making. This paper aims to investigate the
variables that affect the board’s effectiveness and propose methods of addressing the
problem.
Design, methodology and approach: Through the method of literature review, firstly,
we identify the key policy documents and codes of practice that deal with reform in
Corporate Governance regarding the boards. Then, we try to determine the impact and
acceptance those documents and codes have to the modern business world. Finally,
we present the results of our academic research on the subject of board effectiveness
and propose methods on how to achieve this effectiveness.
Findings: We identify the existing pressure forces on the board of directors, we
determine the variables of board performance, we establish the characteristics of highperforming
boards and we proceed in the proposal of practices and processes to
ensure quality function of the board.
Value: The paper's contribution lies primarily on investigating issues relating to
achieving effectiveness of the board of directors as a means to optimization of the
corporate governance.
Collections
Show Collections
