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Nike Company Incorporation Essay Example

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Nike Company Incorporation

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Nike Company Incorporation. While corporate governance frameworks are often unique to each organization, they have several universal elements such as outlining the roles, privileges, and duties of the board of directors to ensure such individuals do not exploit the organization’s resources. Frameworks of corporate governance also outline the objectives and purposes of all business contracts. Corporate governance frameworks also highlight elements of contracts such as people with the capacity to approve controls, length of the contract and rate of return. These frameworks also establish checks-and-balances systems that govern internal departments of an organization. Organizations with effective corporate governance frameworks can effectively streamline their business operations and enhance their potential for profit maximization.

The streamlining of business operations and maximization of profits is the basis of corporate governance measures in major economies. Company boards of directors play critical roles in the establishment and implementation of corporate governance frameworks. A company’s board of directors consists of directors elected by shareholders for several years. In most instances, directors have vested interests in the organization, work in its upper management or are independent of their organization, but are acclaimed for their business capabilities (Dignam & Lowry, 2006). The number of directors in a board vary between organizations, for instance, Nike Inc. has 10 directors, including among others, the company’s CEO, director of corporate responsibility and CFO. In the US, at least 50% of directors should not be associated with the organization. A company’s board of directors (BOD) is tasked with overseeing an organization’s procedures and policies established to guarantee adherence to its ethical and legal business conduct. The BOD is also responsible for selecting senior management such as the CEO and developing benefits and compensation for the management. Nike Company Incorporation.

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