Western Washington University Western Washington University

Seminar in Management:
Corporate Governance
Spring 2011

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Writing Assignment #2:

1) Corporate governance laws within the United States have steadily shifted in favor of the constituency perspective. Suppose you are on a Board within a state which has recently adopted a permissive constituency governance statute--that is, Directors may take into account non-shareholder interests as decisions are made, but are not required to do so. What factors should you take into account as a Board in deciding whether or not to 'embrace' the stakeholder perspective?


2) Outline and elaborate the variety of factors that Directors must take into account as they determine how to structure a Board for greatest effectiveness and efficiency.

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