Assesing the Goal of Sports Products, Inc

Q d. Does the firm appear to have an trenchant bodied governance structure? Explain any shortcomings. Ans They do not have an effective corporate governance structure. The most essential shortcoming is the wariness team who wear thint make true(p) decisions for maximizing shareholders wealth. They only care for the profit and their bonus related with that. They dont take any steps to maximize stakeholders equity. If this info gets public they might got fired from their job for violating the main goal of a public company maximize shareholders wealthQ e. On the basis of the breeding provided, what specific recommendations would you offer the firm? Ans From the information available in the case study, we get a picture that this company has some study problem regarding their top management. We are giving these recommendations to address those issues. 1. Comply with each laws as well as accepted standards of conduct or honorable judgment. This give prevent any more environment al hazard caused by dumping waste and its legal and environmental consequence.2. Establish a corporate ethics policy, to be read and signed by all employees. This will make everyone aware about their specific duties and this will prevent still delinquency by the management. 3. Designing a payment system that ties management team and employees salary to share price or a mathematical operation based scale. And top management must have a investment trust based compensation plan which will get rid of the mode problem existing in the company. And buying stocks from the market will seduce demand for shares thus the stock price may go up for a short session.