Discuss the possible corporate governance issues relating to GM’s Board of Directors and how they could have contributed to GM’s problems: Bank Commonwealth Assignment, Singapore

Questions

1. Discuss the possible corporate governance issues relating to GM’s Board of Directors and how they could have contributed to GM’s problems. To what extent should the Board of Directors be held responsible for the safety issues? Explain.
2. In the 1990s and early 2000s, GM had a practice of promoting the CEO to Chairman when a new CEO was appointed. What are the pros and cons of such a practice?
3. What do GM’s actions prior to the recall suggest about the company’s culture at that time? Discuss the extent to which the culture at GM could have contributed to its problems.
4. How effective were the regulators in discharging their duty? Due to the bailout, many classified GM as “Government Motors”. How might this have influenced the regulators in performing their duties?
5. Given the long-established corporate culture in GM, can the introduction of the “Speak up for Safety” program achieve its intended objectives? How can a company transform its culture?
6. How adequate were Mary Barra’s actions in handling the crisis and taking corrective steps to prevent future occurrences of such problems? Is there anything that she should have done differently? Explain.