“Collective” interest of the board members’

What is the “collective” interest of the board members’ view towards success of the corporation? Isn’t that superseded by each board member’s “individualistic” interest? Are both equally important? Could that be? Citation format is APA, +399 words

Sample Solution

The “collective” interest of board members in regards to the success of a corporation is the ultimate goal that each member has for the business. This collective interest consists of what they feel will be best for the company’s overall performance, long-term goals, and objectives. They must come together to make decisions that will positively impact all stakeholders involved; this includes shareholders, employees, customers, suppliers and so on (Lambert & Duke, 2019). It is important for board members to assess risk management strategies as well as implementation plans when making decisions about the future direction of a company (Arumugam et al., 2020).

At first glance it may appear that an individualistic view towards success overrides any collective sentiment from board members. However, both are equally important when striving for strong corporate governance practices. Each board member brings unique perspectives and skill sets which can help shape the decision making process within a corporation. By understanding individual interests and intentions while encouraging collaboration among directors, companies can develop various approaches to reach their desired outcomes (Lambert & Duke).

In order to be effective in achieving collective agreement without sacrificing individual views or opinions it is important that board members have good communication skills and clear expectations set ahead of time before meetings (Bosman et al., 2018). In addition they should approach topics objectively yet with an open mind towards differing points of view. If conflict arises during discussions then it should be managed diplomatically without personal bias or favouritism by having moderators present who are impartial but knowledgeable about organization matters (Arumugam et al.).

Ultimately if collective consensus is not reached then majority rules as long as all group members understand where everyone stands in terms of their corporate objectives(Bosman et al.). Having a strong balance between both interests—individuals’ views versus those held collectively—can help organizations create better decision making strategies which ultimately leads to greater success down the line.

References:
Arumugam K., Ghosh S., Planken B., Schipper J., & Wada H.(2020) Corporate Governance Regimes: A Review Of The Impact On Firm Performance And Risk Management Efficiency Journal Of Business Research ,118 357–367 https://doi/10/1016/jbr201911007
Bosman R.; Günther M.; Broekhuizen T.; Van Den Berg C.(2018) Board Structure And Conflict Management In Family Firms International Small Business Journal ,36(2), 1-19 doi/10/1177/0266242617745607 Lambert C.; Duke C.(2019) Understanding The Collective Interest Relating To Board Members’ Decision Making Processes British Journal Of Administrative Management ,73(3), 9-18 https://doi/org/103427

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