Posts tagged ‘Add new tag’

Stakeholder Value
Niki Lukviarman | July 7, 2009 | 4:16 am

Organizational value that is generated for stakeholders by creating, implementing, and managing effective strategies, processes, activities, assets, etc. Sustainable value creation for stakeholders occurs when the benefits to them are greater than the resources that are expended on a consistent and ongoing basis. Value is generally measured in financial terms (as in the case of shareholders), but can also be measured as social or environmental benefit or organizational reputation (as in the case of both shareholders and other stakeholders).

Source; IFA (Evaluating and Improving Governance in Organizations, 2009, p. 7)

HIH case; the view of governance
Niki Lukviarman | July 7, 2009 | 4:01 am

“Williams was, in reality, chief executive [of HIH] from the inception of the business until he stepped aside in October 2000. No one rivalled him in terms of authority or influence. Even as his business judgment faltered in the second half of the 1990s he remained unchallenged. No one else in senior management was equipped to grasp that was happening and to bring about a change of direction for the group. There was a lack of accountability among senior management and the boards of directors, and there was a singular failure to assess performance in the context of deteriorating financial results”
(report of the HIH Royal Commission, 2003).

Penggalan kalimat di atas mengindikasikan bahwa dominasi eksekutif (CEO) menyebabkan pihak yang bersangkutan sangat powerful dan berada pada posisi unchallenged di dalam mengambil keputusan strategis perusahaan. Dalam kasus HIH hal demikian diperparah oleh rendahnya akuntanbilitas pihak manajemen (Direksi) serta Komisaris (directors).

The US Financial Reforms
Niki Lukviarman | July 7, 2009 | 3:41 am
“Obama’s points on the US financial reform includes; (1) enhancing the governments regulatory powers, (2) establishing federal oversight [Financial Services Oversight Council?] of complex financial instruments such as derivatives, (3) creating agency to protect consumers”

Comment by Douglas Elliot – the Brookings Institution

“having this many regulators still opens up the system to financial arbitrage or making it easier to allow firms to find the weakest link…..the most significant elements are tougher regulation of companies that could cause a systemic shock and stronger customer protection from dangerous financial products”

Comment by Diana Furchtgott-Roth – Conservative Hudson Institute

“…definitely does make sense, but that putting the government in charge of monitoring companies for systemic risk is very dangerous…..the idea of the government taking over companies that have problems because it decides they are big too fall invites political cronysm as we saw with Chrysler and GM”

Source; the Jakarta Globe (June 19, 2009; B5)