Lead­er­ship and gov­ernance at Mul­tina­tion­al En­ter­prises

Course content

Multinational firms operate in a high-stakes environment characterized by complexity, uncertainty, and information gaps. In this landscape, the decisions of top executives profoundly shape the trajectory and success of their firms. CEOs, with their diverse educational backgrounds, unique personalities, and varied experiences, bring a wide range of factors to the decision-making process. This course examines how these leaders influence strategic choices and assesses their impact on firm performance. Drawing on insights from economics, psychology, and sociology, we explore how traits such as overconfidence and hubris shape executive behavior and business outcomes, offering a comprehensive understanding of the dynamic relationship between leadership and multinational success.

In the second part of the course, we focus on the governance structures of firms, analyzing both formal and informal institutions that guide executive decision-making and promote value-enhancing actions. Corporate governance seeks to mitigate the risks of biased or self-serving decisions by CEOs. Key governance issues relevant to international business are addressed, including ownership structures, the role of boards of directors, executive compensation, and stakeholder influence. Additionally, the course delves into the ethical dimensions of decision-making, exploring how companies address social and environmental responsibilities and adapt to technological advancements that impact governance practices.

The format of the course is based on two elements:

Current academic literature: We will not use a textbook but a collection of academic papers that deal with specific issues of leadership and corporate governance, many of which have just been published in the recent years.

Student participation:You will actively participate in the class. In groups, you might be asked to present a paper, the solution to a case study and, if feasible, discuss a current example from the business press for which the paper is relevant.

Since this is a topic course, there does not exist one single course book covering the material in the course. Most of the required material is free to download when you are logged into the CBS network.. Some materials may be uploaded on Canvas.