Explain the governance section of the organization.
The corporate governance section impacts on the economic measures and its outcomes of any company. The companies that follow the poor standards of corporate governance are the ones that face economic failures (Detomasi, 2006). Cummins Inc is an American organization that is working to provide and design fuel systems, filtration, engines, and power generated systems. The company is following the measures of social responsibility, and its mission is to serve the communities. The company engages its stakeholders in its every project and work upon the sustainability measures for future generations. The company is following the pattern of corporate governance and its model to gain success in the mission of the company. The company’s main aim of corporate governance is to follow appropriate measures and values to improve the value for the stakeholders, the employees of the company, and other linked stakeholders. The pattern of Cummins Inc Company’s corporate governance is that it includes its board of directors to handle the affairs of the company, and protect the interests of all the stakeholders of the company. The panel of board of directors always follows the independent judgment measures while dealing with the strategic and operational issues. The senior management of the company always applied the measures of governance to remain stick with the mission of the company.
Analyze the connection between business and society
The corporate governance pattern is based on a particular framework that maintains proper check and balance system of any company such as the Chief Executive Officer is the one who is able to manage the enterprise, but board of directors are the ones who are considered as most appropriate part of the corporate governance. In the United States of America, the pattern of corporate governance is linked with capitalism (Franklin, 2009). The society and business has a very critical relationship in which the expectation of the societies changes with time and based on the advanced market trends in the economic system. The societal people expect best business strategies and consider that the companies should analyze the factors that social issues are also important in the structure of businesses. The businesses are based on the social, legal, and economic obligations that are needed to fulfill the requirements of the involved stakeholders.
Detail how this connection affects the corporate governance of the company
The social, legal, and economic obligations are required to complete the demands of involved stakeholders. The societies mostly want the global trends implementations in the business patterns and the corporate governance pattern is adopted to ensure the stability of the organization in the long term perspective. Cummins Inc is focusing on to engage its stakeholders in every project also to adopt most appropriate sustainability measures to ensure the success of mission of the company. The main target of the company is to adopt measures that will develop the value of the company for the stakeholders who are the part of the society.
Examine the future corporate governance globally. How does your chosen firm compare with global trends?
The corporate governance pattern is widely spread around the world due to its successful implications however; many times it faced failures as well such as the example of Enron Company. In the future of the corporate governance, studies predicted that in the future companies require a pattern in which the focus will be the long term value for all the involved stakeholders as compare to the fact that companies only pay attention to the delivery of short term returns to the shareholders. Changes are required to the system as the companies will have to target long term strategies so that are targeted stakeholders and society will gain benefits (Allaire, 2013).
Cummins Inc is considerate about its stakeholders and that is why promises to protect their interests. The independent judgment measures are followed by the board of directors of the company to deal with the issues of the company.
includes its board of directors to handle the affairs of the company, and protect the interests of all the stakeholders of the company. The panel of board of directors always follows the independent judgment measures while dealing with the strategic and operational issues. The senior management of the company always applied the measures of governance to remain stick with the mission of the company.
