1887

n South African Journal of Business Management - The board of directors in South Africa : its role in corporate strategic planning

Volume 17 Number 4
  • ISSN : 2078-5585

Abstract

There is a considerable degree of uncertainty regarding the precise role of the board of directors in corporate strategic planning. With reference to the South African Company Law and practice the objectives of this paper are (i) to isolate and categorize possible alternative relationships between top management and the board of directors in matters of corporate strategy; (ii) to identify the level at which the board should become involved in corporate strategy; (iii) to suggest which elements of strategy should be the legitimate concern of the board; (iv) to propose procedural guidelines which will facilitate optimal board involvement in corporate strategy. The author concludes that the board of directors, in terms of its mandate, should not only become involved in strategy evaluation but also in the formulation and implementation of strategic plans. This is particularly true within the context of the current socio-economic and political environment in South Africa. The implications of this conclusion for the composition of the board and for the conducting of board affairs are discussed.

Aansienlike onsekerheid heers aangaande die presiese funksie van die direksie ten opsigte van strategiese beplanning. Met betrekking tot Suid-Afrikaanse Maatskappyreg en -praktyk, stel hierdie werk dit ten doel om: (i) moontlike alternatiewe verwantskappe tussen bestuur en direksie betreffende maatskappystrategie te identifiseer en te klassifiseer; (ii) die toepaslike vlak waarop direksie in maatskappystrategie betrek behoort te word, te identlfiseer; (iii) voor te stel watter elemente van strategie die belangstelling van die direksie regverdig; (iv) prosedureriglyne aan te bled ten einde optimale betrokkenheid van direksie in maatskappystrategie te bewerkstellig. Die outeur kom tot die slotsom dat die direksie, volgens sy mandaat, nie net in die evaluering van strategie betrokke behoort te raak nle, maar ook In die formulering en implementering van strategiese planne. Die implikasies hiervan vir die samestelling van die dlreksle en vir die uitoefening van direksie-aangeleenthede word daama bespreek.

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/content/journal/10520/EJC-657f37bb1
1986-12-01
2019-07-19

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