Reference no: EM132239828

This Journal deals with the subject of Governance. In some European countries, Germany in particular, companies of a certain minimum size must have a two-tiered Board. The main Board deals with the expected topics of executive oversight, project and capital investment review, strategic plans, etc. The secondary Board is really a social-consciousness committee that takes a bigger picture view of the firm and its role in society. Membership of that secondary Board might include union leaders, representatives of rank-and-file workers, and others whom we might not think of as typical board members. What do you think about this two-tiered system? What if a law were passed in the U.S. declaring that all publicly traded corporations in the U.S. had to have a “Social Consciousness Board” (or whatever it might be called)? Would this be a way to ensure that corporations maintain a focus on CSR? How might this arrangement affect the firm's major strategic plans?