Corporate management is the highest level of decision-making in an organization and is in charge of determining purely strategic matters. It is located above the functional level or what is known as the marketing and sales, financial, administrative and production departments.
The term is associated with administrative boards, boards of directors or boards of directors, which are basically bodies made up of a group of members elected by shareholders to govern a corporation, that is, it is the link between the owners of capital and those who they handle it. This group reviews organizational policies, intervenes in long-term strategies and advises on major decisions, but in no case does it manage the day-to-day operations of the organization, the executives are in charge of that.
Corporate Management is a comprehensive system that structures, operates and controls a company, with the vision of achieving long-term strategic goals in order to satisfy the expectations of shareholders, creditors, employees, clients and suppliers. At the same time, comply with all legal requirements and the environmental needs of the community. It is a fundamental component for any corporate organization today. (Vikram Group)
The power of modern corporate management closely resembles that of a government: (a) as in a territorial entity, the top managers of a corporation constitute a centralized decision-making body; (b) these managers exercise power and authority they exercise legally recognized power and authority over their employees, a power that is based on their ability to fire, demote or promote them and an authority that is based on agency law that is ready to recognize and enforce management decisions; (c) the decisions of the managers determine the distribution of income, status and freedom among the communities of the corporation; and (d) through agency law and contract, through their access to government agencies, and through the economic power they possess,the managers of large corporations effectively share the monopoly of power possessed by political governments. (Velásquez, Manuel. Ethics in business: concepts and cases, Pearson Education, 2006)
