.... | What is human governance essentially about? | | | | Meeting the education and development needs of members as part of a commitment to help members be knowledgeable and maintain their relevance in today's markets | | | 2. | How is human governance different from corporate governance? | | | | Corporate governance is manifested as an external, outside-in rules and regulations to legislate the corporations whereas human governance is an inside-out values-based conviction to guide the human where human is viewed essentially as a non-material soul and embodied in the physical being rather than as machine. Being parameter-driven and rule-based, corporate governance emphasises the letter of the law unlike human governance which is about the spirit of the law. | | | 3. | How will human governance benefit us? | | | | As the leading segment of society, business has become the most powerful force for positive change in the world today taking over the role of governments. Decision-making process of business now must take into consideration human well being and the interest of the people. For business corporations to assume this role is never easy since conflict can arise between serving the self and the public. History shows that the original corporations were actually regulatory agencies such as guilds or local governments and had nothing to do with profits. But, over time, events such as the formation of “joint stock companies” and the...
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... Write down the role of corporate governance in resolving the issue: Solution: Agency Theory: Agency theory shows an association among principal and agent. In this relationship a principal appoint an agent who executes duties on the behalf of principal. Principal gave some sort of power to the agent of making decisions along by keeping in mind his owners interest. Mainly agency theory solves the following two problems: a. Intention of principal and agent are in spar. b. Acceptance of risk from both points of views. Corporate Governance: Corporate governance offer law and regulations, policies and practice to supervise and organize the organizations. They present policies and directions in a proper way that can express the objectives of the organization and its stakeholders. Agency Theory and Corporate Governance: Mainly corporate governance starts with the concept of agency theory. Every person within the association and exterior of it go behind these policies to evade risk and clashes. Corporate governance offer rules and instructions and also classifies responsibilities and rights and duties of stakeholders of an organization. We conclude that corporate governance and agency theory go next to with each other. Role of Corporate Governance: Role of corporate governance in issue resolving is as follows: ...
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...and IT: Importance The execution and governance of information technology go hand in hand. IT execution deals with an organization’s IT department making proposals to management for design and implementation of technology developments and acquisitions, and then executing those plans. IT governance deals with guidelines within each company to develop policies, procedures, and decision making to best support the organization through technology. This governance becomes important because it directly relates to an organization’s ability to comply with standards and regulations. By developing the individual guidelines to effectively govern the information and technology used in a company, you develop the methods for executing plans from the IT department that management can approve. Once these plans are approved and executed, this process helps management ensure that they are meeting prescribed compliance guidelines and rules as well. While this is all well and good to proceed from the governance processes through execution, and on towards compliance, it does not negate the opposite direction. Sometimes an organization needs to see things from multiple directions. Sometimes a company will see a compliance that they currently can’t meet. This will in turn prompt management to go backwards through the process to determine what is needed to comply. Oftentimes, this will require evaluation of current methods, assuming they exist. Then they must go backwards through the execution processes...
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...1. Executive Summary of the Case This case study goes through the evolution of IT governance at Cisco and the related project management. This case is a classic example of the result of a decentralized governance of business units. What happened to CISCO due to the decentralized governance, how the business processes were modified to overcome the chaos created by the decentralized governance and how the employees and management reacted to this change in CISCO’s business governance? This case clearly illustrates the effect of a totally decentralized governance and how changing to a centralized governance leads to unrest and resistance. It also illustrates how the cultural/managerial change effects the business decisions needed to be made by a company to achieve success. Essentially, the case shows that IT governance must be aligned with business activities and tie all functions together to support the company’s strategy. 2. Problem Statement Will BPOC give a go-ahead for the proposal that the customer advocacy group was proposing? The proposal was to build a state-of-the-art customer interaction network that would centralize all incoming calls into a globally managed set of contact centers. Though this is a potentially valuable project, CISCO’s new centralized governance means that the customer advocacy group needs to get an approval from the BPOC. Will the BPOC realize the potential? Will it support the project and commit to a full cross-border and cross-functional implementation...
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...Corporate Governance | Should accountability, transparency and effective risk management be regarded as the most important principles of Corporate Governance? | | What actually corporate governance is and how it actually affects a corporation? What are the main players playing a part in corporate governance? These are the questions one must understand in order to see the role of principles like accountability, transparency and effective risk management in corporate governance. So corporate governance is defined as “the relationship between a company’s shareholders, directors, and management as defined by the corporate charter, bylaws, formal policy, and rule of law”. (Gallegos, 2004, p. 37). This definition clearly shows the relationship of a company’s shareholder, directors and management. But this definition is only limited to what are the main players of corporate governance. In order to understand its impact on a corporation or company, ASX defines it as, “Corporate governance is the system by which companies are directed and managed. It influences how the objectives of the company are set and achieved, how risk is monitored and assessed, and how performance is optimized. Good corporate governance structures encourage companies to create value (through entrepreneurism, innovation, development and exploration) and provide accountability and control systems commensurate with the risks involved’. (ASX Principles of Good Corporate Governance and Best Practices...
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...Bubba Tech, inc (BTI) [Study Case] QUESTION 1 Based on the limited facts of this case, prepare a list of the operational issues to present the top management at BTI. Include in your list any corporate governance issues of importance in relation to the management of BTI after it becomes a public company and any issues related to the relationship between BTI and Randy Burnham & Co. ANSWER: Referring to the case of Bubba Tech, Inc. (BTI), there are several operational issues to be presented to the top management at BTI which concerning the corporate governance and issue related to the relationship between BTI and Randy Burnham & Co. The operational issues that can be highlighted are the issue of working with potentially biased audit firm, lack of internal control and lack of corporate governance. The chief financial officer (CFO) of BTI, Willie Carson was once an employee of the Randy Burnham & Co., an accounting firm that is currently acting as the auditor for BTI. The relationship between Carson and the auditors from Randy Burnham & Co. may cause a conflict of interest. A conflict of interest is a situation in which private interests or personal considerations could affect or to perceived to affect both Carson and the auditors from Randy Burnham & Co. judgements to act in the best interests of BTI. The relationship of Carson and the auditors may influence the judgement and the decision relevancy that creates many of the conflict of interest problems in the business. For...
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...Homework Assignment on Alibaba As disclosure in the Form F-1 Registration Statement of Alibaba, their governance structure will bring risks to investors to some extent. Alibaba is going to restrict the power to nominate the majority of board to only a small group of people, which is called the Alibaba partnership. Then Softbank and Yahoo will vote for those nominees each year. Accordingly, this governance structure and contractual arrangement will limit investors’ ability to influence corporate matters, including any matters determined at the board level. [1] In addition, to further lock the control right to, the Alibaba partnership will remain control over the majority of the board for the life and the board remain the ability to issue special preferred shares at any time, with any rules the board wants, without any shareholder vote. Along with the dual class stock structure, the Alibaba partnership is able to control the company with only small stake held. Obviously, dual class structure inputs great risk to corporate governance. However, several well-known public companies around the world choose the structure to lock on control such as Google and Facebook, despite that investors would concern about their corporate governance. Therefore, we have weight the pros and cons carefully to decide whether or not to make the investment. For the negative side of Alibaba’s governance structure, with an absolute control over the company and a limited fraction of the equity capital, the...
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...Mark Mozur 27.01.06 Question 1 What is the importance of Decentralization and Local Governance for Europe and the CIS? This question can be broken down into two separate parts: What problems afflict the CIS and Europe and how can Decentralization and Local Governance help? The answer to these two questions can be summarized in one word – “accountability”. The lack of political accountability in CIS member states has led to disillusionment, poor institutions, and underdevelopment – in short, bad governance. The solution to these issues is re-establishing political accountability, and the keys to that are Decentralization and Local Governance, which would in turn lead to improved stability and increased cooperation with Europe. The eleven former Soviet Republics which comprise the Commonwealth of Independent States have a long history of centralized rule, at various times being governed by Mongol emperors, brutal tsars, or repressive communist dictators. Since the collapse of communism, many of the CIS member states have struggled to shake off the yoke of authoritarianism, as new tyrants have taken advantage of existing state structures. The result among the population, to generalize blatantly, has been a widespread disillusionment with government brought about by the lack of political accountability. Centralized governments serving ideologies or the whims of dictators have free reign and rarely take the interests of the general public into account. Hence the...
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...Code of Corporate Governance – A Critical Comparison between Bangladesh and Malaysia James Bakul Sarkar Assistant Professor in Accounting and MBA Coordinator Faculty of Business ASA University Bangladesh E-mail: jamssarkar@yahoo.com Mob: 0171-6599599 Dewan Muhammad Nur A Yazdani Lecturer in Marketing Faculty of Business ASA University Bangladesh E-mail: dewanm@hotmail.com Mob: 0172-7681817 Md. Abdul Mannan Assistant Professor Department of Business Administration Stamford University Bangladesh Mob:0171-6418892 Code of corporate governance – A critical comparison between Bangladesh and Malaysia Abstract: Corporate governance is the way in which the corporate entities are governed. The question is: Who will determine the way- the entity itself or the regulator. Different stakeholders with quite diversified interests have stakes (interests) in the operation of business. Consequently, the business entity should not be allowed to operate in every respect in the way it likes; the regulators should come forward to impose certain restrictions and principles on the corporate affairs to upkeep the best interests of stakeholders like investors, creditors and after all the capital market. Such restrictions and principles can be termed as Code...
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...There are inductions, contract of employment and there is a policy, which is send to everybody that they suppose to read.” (Head of Risk Policy, Governance and Reporting) The internal policy is available on the intranet, the internal webpage, and is very feasible. (Head of Risk Policy, Governance and Reporting) Moreover, there is a dedicated phone line, employees can call, as well as multiple ways of raising the concern internally. It can be reported directly to the non-executive director. (Head of Group Internal Audit; Head of Risk Policy, Governance and Reporting) The organization regularly review and update the whistleblowing policy. Once it is updated, it is communicated to all the employees about the recent changes. (Head of HR Business Partnering) The non-executive director is responsible for the whistleblowing process and it provides the independence in the oversight. (Head of Group Internal Audit; Head of Risk Policy, Governance and...
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...organization. What? The time spent preparing lengthy presentations places unnecessary administrative burdens on already constrained resources. Many templates often represent the same data communicated in different ways. This redundancy of information wastes time and opens the door for error, misrepresented data, flawed decision making and eventually mistrust in the process itself. Address the “what” by standardizing the gate review template into a simple and effective document. Limit the presentation to a subset of data to focus the meeting on key project information and critical success factors such as strategic fit, size of prize, business unit impact, technical risk and likelihood of commercial success. Who? Most organizations already have a governance team in place to review projects and make decisions. But just having that team in place does not result in an effective gate meeting. Successful organizations also establish an Innovation Process Manager (IPM). The IPM works with functional groups such as marketing, legal and finance to establish the deliverables due at each gate in the development process. Using this checklist, project leaders can be sure that their...
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...2-49 a. I don’t think that having a lot of loans is an example of poor corporate governance. It may be a symptom of a struggling company, though. Struggling companies have more incentive to commit fraud because they may want to hide their weak position or they may need to show a better position on their statements to secure more loans. b. Simply having incentive based compensation for the CEO and CFO is not poor corporate governance. An auditor will have to realize that the CEO and CFO have incentive to manipulate things to overstate growth in assets and profits and keep the stock price growing, though. c. This violates the corporate governance guideline that the audit committee should have at least three independent members. I wouldn’t call the retired CFO independent. The risk factor here is opportunity, because there are not enough independent members on the audit committee. d. This is not a violation of good corporate governance. It is important that the company has some sort of whistleblower policy in place, though, so that the internal auditor can go around the CFO if needed. e. This is not a violation of good corporate governance by itself. It is important that the CEO maintains transparency, though. f. This is not a violation of good corporate governance as long as the committee remains independent and objective. Corporate governance is all about accountability. Even though this committee is deciding on an ex-post basis, at least when management takes...
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...BUS 341W Writing Assignment 11/14/13 Corporate Governance Introduction An increasing research shows that to maximize shareholder’s wealth has become the core of corporations; their attitudes and the way they adopt for how to return to the investors become another core question to protect their own interests. As a result, the key to make a corporation and even the entire market to prosperous is to protect the investors’ interest. Let’s imagine if the internal of a company only seeks its own profit and leaves their investors’ interests under a risk of being nibble. Is there anyone still willing to invest in this company? If every company does so, how does the stock market go to flourishing? Therefore, there should be more emphasis on corporate governance and let it plays an important role in regulating the corporations, rebuilding the confidence of stock market among investors and lead the stock market to go prosperous. In part I, I conclude the arguments of Robert Prentice and Lawrence Mitchell who are favor of more regulation and what their views are to the legislation and regulations, while in Part II I concludes the arguments of Roberta Romano and Stephen Bainbridge who think more regulations are of improper and “quackery”. Part III is about a more detailed examination for different regulations and arguments as I concluded in part I and part II. If certain regulations are well executed, it should not only benefit the corporations and their shareholders...
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...transparency in the context of IT governance, and why is it important? How does the COBIT framework provide for internal audit and corrective action? The transparency of IT Governance is to cover the culture, organization, policies and practices. This type of transparency in the government financial management is very important in a way to produce a proper, complete performance measurement system and to provide insufficient disclosure of these performances information to the broader public. This is why the point of transparency becomes a measurement for health and security in governments, leadership and business in almost all the countries in the world especially in the well developed once, because the public certainly wants the government to be transparent. Information Technology settles how well services are provided and how good the company is satisfying its customers. By providing services the companies can also expose their businesses to risk that can affect with their daily operations and transactions. In this case management must be able to make precise decisions in a way to minimize any risks that could affect the company really badly. It's virtually impossible to have too much transparency or education about IT governance, in fact both of them can go well together and so the more transparency of the governance practices, the more confidence in the governance there will be. Companies with more effective Information Technology governance had more senior management involvement...
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...was being executive vice – president and CIO of WestJet. She could take WestJet go to “next level” as soon as possible by information technology governance and corporate strategy. This report is talking about the information technology governance and corporate strategy of WestJet Airlines on Business Processes reengineering and Controls. There are four main parts in this report. IT Governance has five specific areas which are considered by responsible of managing IT, and Smith’s plan could relate to these five areas. Then, Smith advised the changes with each of the components of the AS8015 model for IT Governance. After that, list all the risks which could affect WestJet continue its IT operations, and suggest recommendation. Finally, how to Smith’s transformation be managed successfully by WestJet, and give recommendation. Q1, IT Governance Institute lists five specific areas that need to be considered by those responsible of managing IT. Considering Smith’s plan to transform IT, how do her plans relate to these five areas? IT Governance is a new business word in these few years. IT Governance means the responsibility of the CEO, directors, main shareholders and executive management. IT Governance belongs to governance, which include the processes, organizational structures and leadership, to keep and extend the corporate’s objectives and strategies (Richard 2005). On the other side, Governance is different with management about what decisions could get, it pays more attention...
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