Final answer:
The board of directors is chiefly responsible for supervising a firm's activities to ensure stakeholder value maximization, supported by auditing firms and outside investors. However, top executives have a notable influence on board member selection, which can impact this oversight.
Step-by-step explanation:
The responsibilities of overseeing a company's activities and ensuring value maximization for stakeholders primarily lie with the board of directors. The board of directors, which is elected by the shareholders, is the leading entity in corporate governance and has a significant role in overseeing top executives.
Additionally, auditing firms play a crucial part in reviewing financial records and verifying their accuracy. Furthermore, outside investors, particularly large shareholders such as mutual funds and pension funds, also have a role in corporate governance.
However, there can be failures in this system as seen in the case of Lehman Brothers, where corporate governance did not provide accurate financial information to investors. In theory, the board ensures the company operates in the shareholders' interests. Yet, in practice, top executives often have significant influence over the selection of board members, which can sometimes undermine this governance structure.