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3 - Roles and relationships as parameters of corporate power structures

Published online by Cambridge University Press:  22 September 2009

José Luis Alvarez
Affiliation:
Instituto de Empresa, Madrid
Silviya Svejenova
Affiliation:
ESADE Business School, Barcelona
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Summary

Roles are used to achieve political ends.

Callero, 1994, p. 240

Neither love nor the division of labor, neither the common attitude of two toward a third nor friendship, neither party affiliation nor superordination of subordination is likely by itself alone to produce or permanently sustain an actual group … the process which is given one name actually contains several distinguishable forms of relation.

Simmel, 1964, p. 21

Sir Adrian Cadbury is the former chair of Cadbury Ltd., UK, and author of the famous 1992 Cadbury Report and Code of Best Practice in Governance. In his recent book, Corporate Governance and Chairmanship: A Personal View (Cadbury, 2002), he emphasized the freedom and choice that managers have in the design of corporate power structures and governance:

In the end, those at the top of a company have certain duties to discharge and there are an endless number of ways in which those duties can be divided. The posts of chairman, deputy chairman, chief executive, and senior independent director can be held in different combinations by four, three, or even two people. The objectives remain the same: to provide clear leadership, to ensure that the board is effective and the business is well managed, and to represent the company to the outside world. The aim is to see that as many as possible of the qualities required for these different tasks are present among the members of the top team. How the tasks are allocated is less crucial than that there should be trust between the members of the team and no confusion about who does what.

(p. 127)
Type
Chapter
Information
Sharing Executive Power
Roles and Relationships at the Top
, pp. 84 - 108
Publisher: Cambridge University Press
Print publication year: 2005

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