The Responsibilities Of Ceos In Large And Small Companies

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With the rapidly growing demand of goods and services of the public, an increasing number of corporations emerge with different sizes from giant firms to individual businesses. The responsibilities of a CEO, as a result, have been classified by a large amount of research to help to improve management efficiency. It is essential for CEOs to recognize their specific responsibilities in different sizes of companies, which are to be compared and contrasted in the following three phases, management models, obligation sharing and social responsibilities.

For CEOs in both large and small companies, the responsibility lies in choosing and following management models which set a proper framework for the companies. A management model is defined
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As a result, CEOs’ obligations are not as centralized as those in large corporations (Davidson et al., 2006). Furthermore, CEOs in small corporations have higher risks in making good decisions. They do not have to discuss the decisions with others before making them so the decisions may lack consideration. Hence, it is a wrong concept that the responsibilities of CEOs in large companies surpass those in small ones under the hierarchy system.

Similarities of social responsibilities between large and small companies are essential concepts for CEOs to realize. Shouldering social responsibilities means that companies make contribution to society and not be solely devoted to maximizing profits(Schermerhorn, 2004). The purpose of social responsibility is to provide higher standards of living, simultaneously preserving the possibility of making profits for stakeholders of the company (Hopkins, 2006). Corporate social responsibility will extend to CEOs’ obligation because their decisions and plans should meet the social responsibilities’ requirement. Firms are responsible primarily for owners, and then employees, customers and suppliers, and eventually for broader society (Robbins & Coulter, 2007). Generally, CEOs in all sizes of corporations should highly consider the two previous stockholder groups, the owners and employees. The