This paper is aimed at discussing the role that corporate governance plays in such a corporation as CAE Inc which is also known Canadian Aviation Electronics. Overall, one can say that people, who represent the part of the company, understand the importance of their activities for the sustainability of the organization. First, they pay close attention to the evaluation of senior managers’ performance (CAE Inc., 2014, p. 4).
Furthermore, they identify possible candidates who can fill the position of the Chief Executive Office, provided that Mark Parent, the current CEO, decides to retire. Such activities are important for the successful performance of this organization. Additionally, corporate governance of this company lays stress of the development of ethical rules that the company should follow. Much attention is paid to financial transparency (CAE Inc., 2014). This emphasis is also justified because inaccurate financial reporting can result in significant challenges such as corporate scandals as well as lawsuits.
Furthermore, corporate governance attaches importance to the compensation of executives. In particular, they strive to attract the most talented candidates. Moreover, they believe that it is necessary to disclose the information about the compensation paid to senior executives (CAE Inc., 2014, p. 2). This strategy is also beneficial because it can motivate senior managers to work harder. This policy can contribute to the effectiveness of this corporation.
Nevertheless, the corporate governance of this company does not offer a clear risk management strategy. This is one of the main tasks that these professionals should cope with. In particular, they do not show how a company can be made more resilient to external stressors. This is one of the limitations that should not be overlooked. Furthermore, one should mention that corporate governance needs to focus on the development of corporate culture which is also critical for the performance of the company. This shared set of values and attitudes is important for the cooperation between the employees who may occupy different positions in the workplace hierarchy.
Overall, the problems related to risk management and corporate culture are the main weaknesses that should not be overlooked. At first, the company should concentrate on those forces that can adversely affect the company. Moreover, they need to identify ways in which the corporation can be made less vulnerable to these stressors. In turn, corporate governance should interact with the senior management while working on this task.
They should regularly assess the main strengths or weaknesses of the company because this evaluation can be useful for improving the work of the organization and even reducing operational costs. Apart from that, they need to single out the core values that should affect various aspects of organizational performance. Moreover, they need to develop a clear vision of the company in the future, and this vision should appeal to the employees and managers. In this way, they can strengthen the internal cohesion of the corporation. These are the main suggestions that can be made.
On the whole, this discussion shows that corporate governance of CAE Inc. is critical for the competitiveness of this firm. This organization effectively addresses areas such as hiring senior executives, compensation, and identification of ethical norms. Nevertheless, they need to pay more attention to such issues as risk management and corporate culture since they are essential for the sustainability of this corporation. These are the main details that can be singled out.
Reference
CAE Inc. (2014). Corporate Governance Guidelines. Web.