...GILL MACRO FINAL.DOC 5/8/2008 5:02:04 PM 452 Corporate Governance as Social Responsibility: A Research AgendaGILL MACRO FINAL.DOC 5/8/2008 5:02:04 PM 452 Corporate Governance as Social Responsibility: A Research Agenda By Amiram Gill∗ In the post-Enron years, corporate governance has shifted from its traditional focus on agency conflicts to address issues of ethics, accountability, transparency, and disclosure. Moreover, corporate social responsibility (CSR) has increasingly focused on corporate governance as a vehicle for incorporating social and environmental concerns into the business decision-making process, benefiting not only financial investors but also employees, consumers, and communities. Currently, corporate governance is being linked more and more with business practices and public policies that are stakeholder-friendly. This Article examines these developments and their impact on the formulation of a transnational body of legal norms by proceeding in three stages. First, the Article explores the recent transformations in the regulation of corporate governance and CSR and the shifts these two fields have experienced. Second, it reads these transformations as a convergence, taking place against the background of “New Governance” and encompassing both corporate self-regulation and efforts by social groups to make this regulation more effective (“metaregulation”). Third, the Article discusses the prospects and challenges of this convergence...
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...Reflection on Shareholders Priority When it comes to corporate governance, there is an important topic worthy of discussion, that is, which should be given priority to between shareholders and stakeholders. Enterprises based on different market, cultural, economic and other elements in all countries give a different answer from both in theory and practice. This essay will briefly review the two main points of view and arguments. Then, according to the requirements of the distribution of issue, it will analysis the reason why Anglo Corporations must focus on shareholders, and discuss the characteristics and influence of the management mode with the priority of shareholders. Finally, this paper attempts to evaluate the above views and practices, and gives the appropriate recommendations. All of the above discussion will be carried out under the background and support of corporate governance theory. 1. Literature Review The essence of the problem that who takes priority between shareholders and stakeholders is: the purpose of corporate governance is to realize whose interests, in other words, whom you did it for is the most important issue. On this issue, there are two controversial and representative views. The theory of "shareholders priority" takes the maximization of shareholder`s value as the goal of corporate governance, which is based on the theory of " capital employed labor ", principal-agent theory and the unilateral governance of shareholders. On the contrary, the theory of...
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...19.09.2014 Source Review In the article ‘Putting ethical practice in corporate responsibility’, Seong (2010) argues that the appreciation(Anerkennung) of business in society puts forward ethical implementation in corporate responsibility as well as the awareness of corporate scandals due to faster distribution via digital channels. The article is relevant to the report question on corporate governance, however, its relevance is limited because the focus is only on one priority of corporate governance. Furthermore, the source is only useful to gain further background information due to a lack of reliable references. The article is relevant to the assessment task, which examines corporate governance and its importance for companies. Seong (2010) points out that companies will attain(erreichen) the gratification(Belohnung) if they recognize(verstehen) the interdependence between corporate responsibility and ethical systems. The more, the correlation between aspects of corporate governance and the worth of corporate responsibility with the result of higher organization’s reward are identified. Moreover, the challenge of connecting the return on investment with the corporate charge into enterprises is presented by the author (2010). The report question’s main focus is on the comprehensive process of corporate governance, hence the source is of limited suitability since it deals only with one principle of the ASX namely ‘Promote ethical and responsible decision-making’. Moreover...
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...of mobile telecommunications corporate governance firms in Zimbabwe. By Mugombe Godfrey Background and Introduction The purpose of this study is to provide insight into the association between business performance of the telecommunications sector in Zimbabwe and corporate governance practices as prescribed in the Organization for Economic Cooperation and Development (OECD). It is widely believed that better corporate governance manifest itself in enhanced corporate performance and lead to higher economic growth (Brickley & James, 2011). There are four major players in the mobile telecommunications sector of Zimbabwe namely Econet Wireless Zimbabwe, Telecel Zimbabwe, NetOne and Africom. NetOne is a state controlled entity whilst the other three companies are privately owned with Econet Wireless Zimbabwe commanding the lion’s share of mobile telephone & broadband business in Zimbabwe (Econet Wireless Zimbabwe, 2013). Statement of the problem The major telecommunications companies in Zimbabwe like NetOne, Telecel, Africom and Econet have embraced corporate governance principles and practices since the turn of the new millennium. However, as Ernst & Young (2012) and Gwatiringa (2012) show, wide ranging differences on corporate performance exist in these companies even after the introduction of the multiple currency regime in 2009. It therefore remains unknown to the public stakeholders and the practitioners of corporate governance in general and potential investors...
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... strengths and impacts of corporate leadership and governance in reference to W.E.TILLEY GROUP a selected family owned firm in East Africa. My main motivation in this study is … (explain your motivation). Emphasis will be on leadership and corporate governance aspects in the firm. These include but not limited to profits and power sharing methods, leadership styles and challenges, succession plans, decision making on complex issues like mergers, acquisitions, take over’s, loans etc.. Also generational changes in the family and their impacts on growth of the family owned firm. Alignment of principals with their agents and their effects on firm’s performance. Appointment of directorship within the family member vis-a-viz professional or educational qualifications. Do culture, religion and external influences have impact on firm’s performance and growth? • Starting point • Read as much you can about the research area • What is a family owned business? • Why should any one care about them? • What are their characteristics • What challenges do they face and why? • In the first instance, just google, let’s just google our title “Challenges Of Corporate Leadership And Governance In Family Owned Firms” • This give us some ideas, we can also google the questions above. • Making progress • What is our input and what is the output? • Input: Corporate governance practices • Output:...
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...Glencore, Xstrata and the Restructuring of the Global Copper Mining Industry in 2012 Diana Alvarez Valencia (1310200) University Canada West Dr. Paul Rome MGMT 661 Strategic Management Tuesday, May 12, 2015 Introduction and Problem Identification In this case study we will identify the problems that can be issued in the process of the merger between two of the largest commodities traders in the world, Glencore and Xstrata. It will provide the background of both companies, the situation analysis, identification of alternatives Companies Background. Glencore had been a trading company since their early years with the name of Marc Rich & Co. Glencore, was founded by March Rich; Rich was a consummate dealmaker, doing business with the entire world no matter their country background (fascist or communists). Moreover, Marc Rich always tried to get the cheapest price with his Middle Eastern contacts. His most important clients were embargoed nations like Israel and South Africa. In 1983, the US government indicted Rich on charges of illegal trading and tax evasion. After different issues and in the sake of create a better reputation the company – Marc Rich & Co. - rebranded itself as Glencore. (Hitt, Ireland & Hoskisson, 2013). Furthermore, one of the Glencore’s practices, is to get cheap tier 2 assets from doing business in developing countries considered high-risk by others rather than developing on its own. In 2002, Glasenberg become the CEO of the company.(Hitt, Ireland...
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...Background The need for corporate governance among listed and unlisted companies and state-run enterprises is so great in Zimbabwe. The drive toward corporate governance has been fuelled by a number of factors. There is wide recognition that corporate governance can contribute to the economic success of corporations and to their long-term sustainability (going concern). It is also recognised that good corporate governance can enhance corporate responsibility and improve the reputation of companies, which in turn can attract local and foreign investors. Corporate governance is also seen as a deterrent to corruption and unethical business practices that has scared our business image.( WOYO MANNERS 2013) The market discipline and transparency...
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...A discussion on company's corporate governance statement. This statement sets out the key corporate governance principles adopted by the Directors in governing David Jones and reflects the corporate governance policies and procedures which applied during the year ended 28 July 2012. The corporate governance statement of David Jones is very specific and coherent. It provides the information very clearly and shows the detail that how their behaviors applies the Australian Securities Exchange requirement. Based on their corporate governance statement, it is very clear that the Board has a good performance in corporate governance across the company. Firstly, the structure of board and directors is good. For example. the majority of the board are independent directors. Directors come from different backgrounds with complementary skills and experience; they also do not have conflicts of interest with the company. Secondly, David Jones has a good performance on the control of risks. David Jones’ approach to risk oversight, risk management and internal control has been developed and is consistent with recognized industry reference material and guidelines. Thirdly, the remuneration is fair and responsible. The Remuneration and Nominations Committee helps the Board to decide the suitable remuneration of Directors and executives regarding to their performance. Based on the corporate governance statement, it is also very clear that David Jones applies the ASX(Australia Securities Exchange)...
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...| Corporate Governance2 CreditsBU.231.720.84 Days and time: Wednesdays. 9:00 am – 12:00 pmSpring 2, 2015 March 25 - May 13, 2015HE BaltimoreRoom #206 | Instructor Dr. Demir Yener Contact Information 1625 Massachusetts Avenue, Washington DC. Office: 206K. Phone Number: (202) 650-6022; E-mail Address: demir.yener@jhu.edu Office Hours Mondays 4:30 – 5:00 pm or by appointment Required Text and Learning Materials: 1) Monks, Robert A.G. and Nell Minow. Corporate Governance (5th Ed. ISBN 978-0-470-97259-5), Wiley-Blackwell, 2011 2) Yener, Demir. Corporate Governance Primer 3) Lecture notes on Corporate Governance by Dr. Yener. 4) Other cases and readings to be distributed through BlackBoard as required. (Please note: the latest edition of the textbook will be adopted if there is one available. Please check out our online bookstore for most updated textbook information http://bookstore.mbsdirect.net/jhu-carey.htm.). Please see other required and recommended readings in the class schedule. Blackboard Site A Blackboard course site is set up for this course. Each student is expected to check the site throughout the semester as Blackboard will be the primary venue for outside classroom communications between the instructors and the students. Students can access the course site at https://blackboard.jhu.edu. Support for Blackboard is available at 1-866-669-6138. Course Evaluation As a research and learning community, the Carey Business...
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...The Background of Independent Directors and Corporate Performance 12公司理财 张晨月 2012312482 12公司理财 杨怡 2012312487 Abstract The purpose of this paper is to test the effect of independent directors’ background on company’s performance. Our study found that the education background of the independent directors of has no positive influence on the company's performance. And our study also found that government background of independent directors have a negative impact on company's performance. Studies also support the restriction of individuals that are act as several independent directors. Research of this paper enrich the corporate governance literature and provides a new point of view of the correct understanding of the influence of independent directors on company performance. Besides, it provides important empirical evidence for the further reform of corporate governance in our country . Keywords: background of independent directors The board of directors company's business performance ,corporate governance PART I. Introduction The introduction of independent director to the board of directors of the company hopes to improve the level of corporate governance and protect of rights and interests of small shareholders. More importantly, they also hope that the independent directors can promote the management decision of company management level from the perspective of experts, so as to improve the business performance of enterprises. As a result, whether the...
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...National Kidney Foundation (NKF) of Singapore INTRODUCTION “Power tends to corrupt and absolute power corrupts absolutely.” Lord Acton National Kidney Foundation (NKF) was established way back 1969 as part of the cell under the Singapore General Hospital due to the arising numbers of kidney related disease victims in Singapore. That cell not only responsible for treating the kidney patients but also taking up the challenges on research as well as educating the community on kidney disease. NKF has officially opened their first dialysis centre at the Kwong Wai Shiu Hospital in 1982 and throughout they have gone ups and down before emerge as a premier charity organisation in Singapore. By July 2005, Singaporean were shocked when the news of NKF scandal broke following the collapse of defamation trial. It is unexpected due to the fact the NKF has already recognise as a lead charity organisation with the revenue of $116 million. Lots of allegation were slandering around and the spot light goes to the then NKF CEO, Mr Thambirajah Tharmudurai or better known as T.T. Durai. The news not only rock the nation but also has attracting interest of global parties. The scandal has cause the CEO and his board of Directors to resign. Therefore, this case study is significant for the group to analyse the organizational leadership issues and challenges. AIM The aim of this study is to analyse the case of National Kidney Foundation scandal in the context...
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...EXECUTIVE SUMMARY This paper investigates about the Enron Corporation and Arthur Anderson. This assignment is to identify the background of Enron and Arthur Anderson and Enron fail. Other than that, identify the business risks that faced by Enron. Moreover, determine the responsibilities of board of directors and steps to improve corporate governance. Besides that, differentiated between rules-based accounting and principle-based accounting and the uses. In addition, there are discussion about auditor should allowed to provide non-audit services. There are also critical discussion on the reason audit partners struggle with making tough accounting decisions and a good recommendation of changes to be made. 1.0 Background of Enron Corporation and Arthur Anderson and fall Of Enron. 1.1 Background of Enron Corporation Enron was established in the middle of a recession in 1985, when Kenneth Lay CEO of Houston Natural Gas Company (HNG), persuaded a joining among Inter North Incorporate (Peterson). There was a young consultant named Jeffrey Skilling who had a background in banking organization (Peterson). He planned an innovative solution for Enron profit in the natural gas business (Sridharan, Dickes, & Caines). For instance, Enron buy natural gas from suppliers and sell to customers with the higher price (Sridharan, Dickes, & Caines). It is because the demand of natural gas increased (Peterson). Kenneth Lay was very impressed with Skilling’s new solution in 1990 and...
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...The Background Introduction Helter Skelter, Inc. founded in the late 1960’s is a large public company producing the component parts that are integral for high performing automobiles. It also opened the market in Asia to provide component parts for emerging auto manufacturers in the past ten years. The company is highly successful and has a track record of long stretches of reporting consecutive profit growth. Dagwood Blemish is the founded-CEO of Helter Skelter, Inc. Blemish has been the single leader of Helter skelter, Inc. for the last 15 years and his proclaimed leadership style is to serve as the inspirer for good ideas and to facilitate technological advancement. By Blemish’s lead, the company is making between $8 billion to $9 billion annual revenue. Blemish has so high authorism image among the employees that very few individuals say no to him or contradict his directives. Blemish’s growing concern is the large portion of the company overhead dedicated to information technology assets and how those assets can drive better revenue for the company. Reynolds Potter joined Helter Skelter, Inc. in 1998 as the CIO of the company. He has very strong professor background working as top IT officer for a number of high profile and large companies. Due to Potter’s powerful international leadership and his centralized purchasing power in Helter Skelter, Inc. he unfortunately get some animosity from some other company senior leaders who also have the CEO’s ear. As being a founded-CEO...
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...1 The American Red Cross Dr. Jack Huddleston Business Ethics: Ethical Decision Making & Case July 21, 2013 2 1. Determine the impact of this event on ARC’s “benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line). The American Red Cross (ARC), also identified as the “The Face of Recovery”, is a humanitarian organization that provides emergency assistance, disaster relief and education inside the United States. The ARC is a non-profit organization that offers services in five areas of society. The community service sector helps citizens that are in need. In the communication sectors, the ARC provides comfort for military members and their families. The collection, processing and distribution of blood and blood products are also services provided by the ARC. There are also educational services on preparedness, health, and safety which are imperative for recovery acts. Hurricane Katrina was the deadliest and most destructive Atlantic Hurricane of the 2005 Atlantic Hurricane season. It was the costliest natural disaster, as well as one of the five deadliest hurricanes. Hurricane Rita hit the coast of Louisiana and Texas only a month later and was even larger category 3 storm (Ferrell, Ferrell, Fraedrich 2011). The ARC raised more than 2 billion in private donations to fund massive relied efforts for both these disasters...
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...more women on its board of directors thereby making it more diverse. This is because of the fact that women are the prime household decision makers and have a better understanding on the company’s target consumer. Boards with no or limited female membership may be weak in terms of understanding and connecting with the customer and workforce and offer limited encouragement to female employees. Based on research, analysis and examples, this memorandum supports the argument that a diversified board structure and composition brings increased value to the organisation. Board Composition: To understand the significance of board composition is it useful to first briefly look at the board, its members and the roles they play. The corporate governance system in most countries can be...
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