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Essay / Research Paper Abstract
This 5 page paper consider how non executives directors can add value to a company due to their ability to take on a more stakeholder oriented approach to the organisation. The bibliography cites 10 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TEnonedi.rtf
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Unformatted sample text from the term paper:
by the shareholders and are entrusted with running the company on behalf of the shareholders. When we consider the way in which company board roams are run, we can argue
that the presence of non executive directors may be an important way of creating a broader, more stakeholder orientated approach. If we consider the duties of a executive directors we
will be able to appreciate the role of non executive directors in greater detail. Directors owe a duty of care to the shareholders, they are bound to use the
skills they have for the benefit of the company, They are only negligent if they fail to use those skill, and as such the duty of care is relatively low.
Other laws apply where there is a misinterpretation of abilities. However, in this we see that they are the direct agents of the shareholders, and although they are also employees
of the company, their main aim must be to oversee the creation of profits. However, if we consider the non executive director we see they may fulfil a different role,
adopting the stakeholder approach they can represent different views and bring greater value to the company overall as a result of this alternate perspective and ability to consider other interests.
An organisation can have many views on the purpose of its operation . Those who are interested in the operation either directly
or indirectly are called stakeholders, the question then becomes which are the legitimate stakeholders for this organisation to consider in its quest to increase value for stakeholders. Some of these
stakeholder may be remote enough not to be seen as having a relevant interest when it comes t adding value whilst others may be directly effected and have specific views
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