Apple Corporation
The Apple Corporation has adopted governance structures that assist them in the day to day management of the company. The Board of directors supervises the operations of Apple Corporation, ensuring that all employees adhere to set down standards, rules and ethical regulations. The board is expected wok towards satisfying the interest of stakeholders, employees and clients through a focused and practical approach (Monks 23).
An important aspect of it s corporate governance structure lies in the protection of its intellectual property. There is a high level of confidentiality within the apple corporation and this has made it possible for the company to avoid leakage of sensitive information that would benefit its competitors. The confidentiality within Apple Corporation is respected by all its employees and it applies not only within the physical environment but also in employee’s interactions with the outside stakeholders. The employees are expected to exercise maximum discretion when speaking or writing on issues touching on company products (Aras & David 123).
The supply base of Apple’s components is designed simply and efficiently. This draws from the fact that Apple deals in just about five products, the only difference being their distinct versions. This means that most of the Apple gadgets use the same components, ensuring a small and manageable supply chain. This simple concept has made a huge difference in the management of the company (Aras & David, 36).
The employment policy of Apple focuses on recruiting and retaining the best talent. The company offers internships and on-job training opportunities that enable it identify the best talent and retain it through high compensation and other benefits (Monks 44). It is also noteworthy that Apple has a policy of placing the highest potential talent in positions of responsibility to giving them the opportunity to drive the fortunes of the company. This has enabled it to benefit from the best talent in the market. The accounting and auditing procedures at Apple are also efficient with the board members in touch with all financial transactions, which are then communicated to the shareholders.
Tyco International Ltd.
Tyco was a large company with diverse interests in manufacturing. It grew through major acquisition at home and abroad. However, poor management practices and lack of accountability saw the company lose its hitherto stable industrial niche. The management proved to be untrustworthy and shareholders were left in the dark over major decisions at the organization. The investors were kept in the dark over compensation for senior managers and other transactions (Monks 67).
There was an exaggeration of the company’s operating capital by almost a billion dollars. Senior management created mechanisms that created loopholes for the management to misappropriate company resources. A weak internal auditing mechanism greatly contributed to this situation. The company also developed the culture of evading business taxes. This coupled with complex accounting procedures led to the negative perception of their stocks loss in company value.
The Board at Tyco lacked the will to ensure that the interests of the stakeholders were protected. They were not guided by any clear policies that would ensure the success of the company. Instead, they were beholden to the CEO and the monetary gains they acquired though his patronage. The board therefore failed in its oversight and supervisory responsibilities (Monks 113). As a result, the company failed.
Works Cited
Aras, Güler, and David Crowther. A Handbook of Corporate Governance and Social Responsibility. Farnham, Surrey, England: Ashgate, 2010. Print.
Monks, Robert A. G, and Nell Minow. Corporate Governance. Chichester: Wiley, 2011. Print.