Whether you want to move up in your career or start your own company, a business administration degree can be a great way to get there. It offers a well-rounded curriculum that includes both data-driven sciences, like accounting, and workplace skills, such as management.
It is important for a person who works in commercial administration to have good communication and time management skills. This field also involves a lot of problem-solving.
Corporate governance
Corporate governance is a set of practices and procedures that help businesses keep their stakeholders accountable. It also promotes transparency, openness, and legal compliance. Ideally, it should also cultivate relationships and trust with shareholders and employees. A company with strong corporate governance can also remain financially stable and grow its bottom line.
Good corporate governance involves prioritizing long-term goals, creating a balanced leadership team, and providing financial freedom to auditors. It also emphasizes a clear vision and culture. A company with poor governance can lose faith from investors and consumers. It can also tarnish its brand image.
One example of bad corporate governance is the Enron scandal, in which the company collapsed after inflating its reported revenue by a large margin. This led the government to enact stricter regulations on corporate accountability and governance. It also prompted some companies to establish separate boards for management and supervisory control.
Board of directors
Business administration is a field that encompasses several aspects of commercial operation and decision-making. It includes the management of personnel, accounting, finance, development, design and marketing. The business administrator also monitors the company’s daily operations to ensure that they are running smoothly. Depending on the position, the job requires excellent communication skills and time management.
A board of directors is a group of people who oversee the daily operations of a company. It is made up of both inside and outside members. They meet regularly to discuss important issues related to the company’s future and direction. The structure and responsibilities of a board of directors are determined by the company’s bylaws. However, there are some general best practices. Outside directors, for example, are usually helpful in the advisory role because they are familiar with specialized areas of management problems. They can offer useful input to presidents willing to listen. Occasionally, their advice and counsel may result in the reconsideration or modification of a management commitment or decision.
Lead/presiding director
The lead director must be able to navigate a wide range of issues. This includes regulatory compliance and fostering strong ties with the company’s chief executive. She must also be able to provide a channel for board members to express their concerns about management.
According to a Spencer Stuart study, 94 percent of S&P 500 boards have a lead or presiding director, up from just 37 percent in 2003. Much of this increase is a result of corporate governance reforms, including Sarbanes-Oxley and the New York Stock Exchange’s requirement for independent directors to meet regularly without management present.
The role of the lead director can be difficult to define, and selecting the right candidate can be a challenge. It is important that all of the directors have a direct involvement in the selection process. This will ensure that they are invested in the success of whoever is chosen to fill this crucial position. The lead director must be able to foster strong communication channels between the board and the CEO so that both parties feel comfortable disclosing information.
Independent board leadership
Independent board leadership is an increasingly important issue for investors. Some investor signatories, such as Norges Bank Investment Management, require separate chair and CEO roles, while others endorse a lead director model.
Regardless of the leadership structure, good governance requires an active and engaged board. This includes making sure that board members have access to information and can ask difficult questions without wasting valuable board meeting time. Delegating follow-up items and tasks to committees (composed of a subset of the full board with specialized expertise) can also improve the effectiveness of a board.
The independent board leader can help new directors feel welcome at the board table and foster a culture of respectful, constructive disagreement. In addition, they should be willing to engage directly with shareholders about important issues such as diversity, sustainability and compensation. This practice is increasing, with 14% of S&P 500 companies disclosing that their independent leaders held direct engagement conversations with shareholders in the past year.