Comparative Corporate Law

Comparative Corporate Law

Introduction

Corporate decision making is considered as the most fundamental aspect of any business or organization. It is because of the reason that, effective and appropriate corporate decision making may greatly help the businesses and organizations to get their pre defined and desired goals. In addition to this, it is also observed that, non executive directors may play a vital role in taking effective and strategic corporate decisions. On the other hand, there is also complex relationship between the corporate decisions making and social, governance and economic issues. In this scenario, it is considered as the responsibility of the non executive director to consider these issues, in order to greater outcomes of their strategies and decisions. Proceeding discussion incorporates the answers of the given question in which the role of executive directors in corporate decision making is going to be discussed. This study also demonstrates that, how the non executive directors consider government, social and economic issues, while making corporate decisions.

Discussion

Answer: 1

Corporate Decision Making

According to researches and studies, the process of decision making is one of the most important aspects in any organization or business. It is because of the reason that, the integrity, productivity and performance of any organization or business depends on the decisions that are taken by the board of an organization. Corporate decision making may also affect the performance of the employees as well as the reputation of an organization in the targeted market.

Non Executive Directors in Corporate World

In corporate world, non executive directors are referred as the non working directors. It is often observed that these directors do not take part in the organizational processes and are considered as the independent workers. Non executive directors are not considered as the employee of an organization. Instead of this, they are only responsible to enhance the value of organization's stakeholders and staff. Furthermore, non executive directors are also responsible to challenge and monitor the performance of the executive directors. This may greatly help them in increasing and improving the performance as well as the integrity of an organization in the targeted market.

Importance of Non Executive Directors in Corporate Decision Making

In business world, non executive directors are referred as the part of the board of directors exclusive of any organizational responsibility. It is often observed that non executive directors play a vital role in making appropriate and effective corporate decisions. Therefore, non executive directors are considered as the most beneficial feature for corporate governance. It is because of the reason that, they are more spirited and competitive in appropriate and effective decision making process, self management, representing organizational goals, influencing employees, commercial awareness, strategic thinking and communicating with the work force. Furthermore, non executive directors are also considered as one of the most effective features of an organization that may help in increasing the accountability and integrity of an organization.

In any organization, non executive directors are considered as the most appropriate and reliable decision makers. It is because of the ...