Bussiness Ethics Assignment

MGMT 3123 Business Ethics

Ch. 5 Corporate Governance

Definitions

The officers of a corporation, who are responsible for its daily business operations, are hired by and report to the Board of Directors. The Board of Directors is usually headed by a Chairman of the Board.

The top-level officers of a corporation often include:

· Chief Executive Officer (CEO) – The highest-ranking executive in the corporation’s management structure. He or she is responsible for leading the company in the achievement of key performance measures – market share, revenue, profits, and share price.

· Chief Financial Officer (CFO) – Senior executive responsible for overseeing the financial performance of the organization. This includes management of the internal financial processes, all recordkeeping, and the production and communication of all financial reports.

· Chief Operating Officer (COO) – Senior executive responsible for managing the day-to-day operations of the organization. He or she is tasked with implementing the company’s strategic plan and usually reports to the CEO.

Conflict of Interest –

· A situation in which one relationship or obligation places a person in direct conflict with an existing relationship or obligation. (p. 58)

· A person holds a position of trust that requires him/her to exercise good judgment on behalf of another party (such as a corporation or a client), but his/her personal interests conflict with the best interests of that party.