3.40802 CORPORATE GOVERNANCE

This course equips students with understanding of the importance of corporate governance to the strategic management process. It is premised on the fundamental understanding that corporate governance represents the relationship among stakeholders that is used to determine and control the strategic direction and performance of organisations. Essentially, corporate governance is concerned with identifying ways to ensure that strategic decisions are made effectively, and is used as a means by corporations to establish order between the interests of firms' owners and their top-level managers. The course covers corporate governance mechanisms, separation of control and managerial control, principal-agent relationship issues, stakeholder activism, board of directors structures and composition, executive compensation, ethics, and comparative corporate governance issues. It pays particular attention to corporate governance practices in PNG where firewalls need to be built to protect stakeholder interests against the predominance of the governmental factor and turbulence/complexity in the business environment.

Contact hours: Four hours per week.

Text:

Text: Hanson, D., et al., 2002, Strategic management: competitiveness and globalisation, Pacific Rim Edition, Nelson Thomas Learning, Victoria