The company’s highest-ranking executive is referred to as a chief executive officer (CEO). He or she has the main responsibilities including creating major decisions for the company, handling the company’s overall strategic and operational decisions, serving as the principal point of communication between the board of directors and corporate operations, and serving as the company’s official representative. A CEO is chosen by the board of directors and the company’s shareholders.
The function of the CEO differs based on the culture, size, and corporate structure of the organization. CEOs often deal primarily with very high-level strategic choices and those that guide the corporation’s overall growth in major organizations. CEOs of smaller businesses are frequently more hands-on and active in day-to-day operations. CEOs have the power to determine the tone, culture, and vision of their companies.
Roles of a CEO:
- Assuring that the organization maintains a high level of social responsibility in all of its operations
- Communicating with shareholders, government agencies, and the general public on behalf of the company
- Developing and carrying out the company’s missionand vision
- Identifying the company’s risks and ensuring that they are managed and mitigated
- Keeping a comprehensive understanding of the competitive market landscape, expansion potential, and industry developments, among other things
- Leading the company’s short-and long-term strategic planning
- Monitoring the work of the company’s other executive leaders, such as presidents, vice presidents, and directors