Corporate Governance
Corporate governance is one of the most beneficial aspects towards achieving a successful company. When there is positive and effective corporate governance, all parties involved have aligned interests for the company. At Home Depot the corporate governance strives to be the best employer, retailer, investment, and home improvement retailer of choice within the industry. Their corporate governance represents the overall culture within the company and is driven by the their daily vision, mission, and values. Their daily commitment to their values enables all employees within leadership to act ethically keeping in mind the best interest of all shareholders, customers, employees, suppliers, the communities, and countries they operate in. All leaders actively align with one another to work together to perform strong corporate governance practices. A positive result of their leadership and actively aligning interests with one another has shown to improve the company’s financial reporting process.
In 2002 and 2003, Home Depot made it their priority to continually strengthen their corporate governance by having the foundation execute new procedures to create improvements. These procedures include incorporating a disclosure committee that is responsible for disclosing accurate and complete information to all stakeholders. Another procedure they introduced was a corporate compliance council called Enterprise Risk Council that is responsible to consistently monitor compliance performance and to make sure they are actively following the company’s compliance policies. Their last procedure they introduced was new independence standards for board members. The new procedure exceeds the standards of the New York Stock Exchange (NYSE).
As of 2006, Home Depot’s Board of Directors created a majority vote rule for the election of directors. This majority vote standard requires each director to receive a majority vote, specifically pertaining to them. Prior to this majority vote standard, each director was elected under a plurality vote standard. A plurality vote standard would enable the individual with the most votes to win without considering in those votes were a majority of the shares casted. By implementing this majority vote standard, it gives the individuals on the board the opportunity to be dedicated to a leadership position and be an active part of Home Depot.
In 2002 and 2003, Home Depot made it their priority to continually strengthen their corporate governance by having the foundation execute new procedures to create improvements. These procedures include incorporating a disclosure committee that is responsible for disclosing accurate and complete information to all stakeholders. Another procedure they introduced was a corporate compliance council called Enterprise Risk Council that is responsible to consistently monitor compliance performance and to make sure they are actively following the company’s compliance policies. Their last procedure they introduced was new independence standards for board members. The new procedure exceeds the standards of the New York Stock Exchange (NYSE).
As of 2006, Home Depot’s Board of Directors created a majority vote rule for the election of directors. This majority vote standard requires each director to receive a majority vote, specifically pertaining to them. Prior to this majority vote standard, each director was elected under a plurality vote standard. A plurality vote standard would enable the individual with the most votes to win without considering in those votes were a majority of the shares casted. By implementing this majority vote standard, it gives the individuals on the board the opportunity to be dedicated to a leadership position and be an active part of Home Depot.