Business Case Studies,Corporate Governance & Business Ethics Case Study, Flour Corp's Business Ethics Practices: Creating Six Sigma Standards in Staying Corruption-Free

Code : GOV0024B

Year : 2005

Industry : Transportation

Region : USA

Teaching Note: Not Available

Structured Assignment : Not Available

Abstract: Knight Transportation, Inc. (KTI), recognised by Forbes for its low operating ratios in the US trucking industry is setting standards in corporate governance. To comply with the listing standards in NYSE, the company has put in place written charters for selection of independent directors, voting requirements for their election, and limiting executive compensation packages. The case talks about what role the Board of Directors can play in ensuring corporate governance standards during the growth of the company. The case examines in detail the corporate governance practices undertaken by the Board Committees and the strict adherence to the Generally Accepted Accounting Principles (GAAP) while preparing financial statements. Mandatory personal assurances by the top executives on the fairness of financial statements are also complied with. With stricter corporate governance standards, KTI is expecting to realise higher returns for its stakeholders. The case can be used to teach courses in business ethics and corporate governance curriculum.