Business Management Practices in the Legal Environmente management board plays a crucial role in ensuring the best decisions of a corporation are implemented. It is mandatory that the decisions made by the trustees in the organization act in the most honest manner for efficiency. The roles and duties should be in line with the judicial aspects and requirements within the legal framework. According to Bagley (658), of all the duties mandated to directors of an organization, loyalty and care they display must be acted in good faith. The managing board is mandated with many duties that when summarized, narrow down to two; duty of care and the duty of loyalty (Bagley 658). It is, therefore, necessary that, while the board of trustees make the vital decisions of directing the corporation, they do it efficiently and with the best interest of the business, as a whole at heart (Bagley 658). It is very important that all the decisions the board of trustees does to be aligned with the interest of all the shareholders and within the legal framework. It is vital no matter the consequences that may result for the trustees of a corporation to ensure that they inform the stakeholders of the decisions they wish to implement to avoid lawsuits. The duty of candor is vital to the board of trustees because it would ensure that the stakeholders are informed of the most important decision the they are bound to make and implement for the betterment of the organization. It is the duty of candor among the trustees that will further lead to the fiduciary duty to which will be as a result of the trust between the board of directors and the stakeholders.
The financial manager is an important asset to a business organization because he/she is answerable to all the financial decisions and reporting done (Bagley 751). The financial manager must be diligent enough and knowledgeable with all the accounting systems in place and the laid down strategies put in place as this will prevent the loss that are bound to accrue from frauds and other risk related practices targeting the loopholes in the business.
Bagley, E. Constance. Managers and the Legal Environment: Strategies for the 21st Century.
Cengage Learning (2012).
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