Turmoil in the Magic Kingdom Assignment Example | Topics and Well Written Essays - 1750 words

Turmoil in the Magic Kingdom - Assignment ExampleAnswer 1 Any government should abide by the principles of corporate governance on which the company would run. A company under all circumstances should dumbfound to these principles. The set up in which proper governance should be run should include the proper storage allocation and distribution of rights and duties among the wind executives and the chief decision makers of the organization. The method of corporate governance would affect all the stakeholders of the organization that include the customers, the sh beholders, investors, the employees, the forethought and the regulatory bodies (Goergen, 2012). Any descriptor of wrong decision making or frame in of policies for selfish motives would affect the stakeholders. Through a proper structure of corporate governance the mission and the objectives of the companies house be framed and the company passel move in a specified direction accordingly. maiden of all a company shou ld have policies that provide for equal rights and treatments towards the shareholders. It is necessary for all the organizations that go to the familiar for funds to know that since the general public are the true owners of the company, the management has a responsibility towards them. In grammatical case of any specific circumstances the shareholders should be able to express their opinion and may requirement for their rights. Thus situations of reading asymmetry should be avoided and irrespective of the amount of stake in the organization they should be welcomed to take part in the decision making process in the annual meetings. In the case of Disney, it is clear that the shareholders were deprived of their right to select the right candidate as member of the menu. The CEO has displayed secernment towards a particular individual who would support him in his selfish endeavors. Thus the composition of the board was generally controlled by the Michael Eisners favorite people w ho would agree to what the CEO would decide for the company. Those who did not approve of this kind of governance methods were either sidelined by the board or they were thrown out of the nomination by the board members in support of Eisner. Secondly, apart from the people who have financial stake in the company the others including the customers, suppliers and the employees withal have a right to have access to correct information about the various aspects of the caper including the rules and policies and the financial position (Low, 2008). In Disney the shareholders demanded for a justification of the high pay out that CEO and the top executives were drawing. Along with that the fluctuations in the prices of the shares had an effect on the financial markets and the mutual fund managers because they questioned the integrity of the financial information of the company. Thirdly, the board of directors being a very significant part of the company should take responsibility for the m anagement practices that they undertake. A company in its journey towards excellence would face several challenges. These challenges have to be met by the board in the most ethical and justified way as possible. Only those people who are capable enough to handle these problems should be included in the board. The members of the board should also have a lot of autonomy and liberty in any decision making process. In this case of Disney, it can be seen that the CEO, Eisner had an autocratic attitude and he forcibly included those people in