In a corporation, who has the authority to influence corporate policy?

The Board of Directors possesses the authority to influence corporate policy because they are formally responsible for overseeing the company’s management and making key strategic decisions. This group is elected by the shareholders and serves the interests of those shareholders by establishing the overall direction of the corporation, approving major decisions such as mergers or acquisitions, approving budgets, and setting executive compensation.

The Board's role includes the governance of the organization, which allows them to shape policies that define the operational and strategic frameworks within which corporate officers and employees must operate. They hold the ultimate authority in matters that affect the overall mission and objectives of the corporation.

While shareholders can express their views on corporate policies and have voting rights that can influence certain decisions, they do not engage in the day-to-day management or strategic oversight. Corporate officers execute policies set by the Board of Directors but do not have the independent authority to influence corporate policy in a way that a board member can. Employees may contribute ideas and feedback, but they do not have decision-making power regarding corporate policy. Therefore, the Board of Directors is the entity that decisively influences corporate policy within a corporation.