...B: Short Notes | Question | Answer | 11(continued)1(continued) | Clause 49The term ‘Clause 49’ refers to clause number 49 of the Listing Agreement between a company and the Stock Exchanges on which it is listed. The Listing Agreement is identical for all Indian Stock Exchanges, including the NSE and BSE. This clause is a recent addition to the Listing Agreement and was inserted as late as 2000 consequent to the recommendations of the Kumar Mangalam Birla Committee on CG constituted by SEBI in 1999. Clause 49, when it was first added, was intended to introduce some basic CG practices in Indian companies and brought in a number of key changes in governance and disclosures (many of which we take for granted today). In late 2002, the SEBI constituted the Narayana Murthy Committee to “assess the adequacy of current corporate governance practices and to suggest improvements.” Based on the recommendations of this committee, SEBI issued a modified Clause 49 on October 29, 2004 (the ‘revised Clause 49’) which...
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...The Importance Of Corporate Ethics and Values: Building a Sustainable Strategy Model for Effective Implementation of Good Corporate Governance within a State-Owned Enterprise in South Africa. A Research Study Presented to the Graduate school of Business Leadership University of South Africa In Fulfillment of the Requirements for the MASTERS DEGREE IN BUSINESS LEADERSHIP UNIVERSITY OF SOUTH AFRICA Prepared by Lazarus Docter Mokoena (called Bonga) [Student No: 0555-418-7] Tel: 011-217 1187 (Work); 011-679 5486 (Home) Cell: 082 466 6896 SUPERVISOR: PROFESSOR M.H. CROSBIE FINAL RESEARCH REPORT November 2005 TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................. 4 CHAPTER 1 ............................................................................................... 8 1. 1.1 1.2 1.3 1.4 1.5 1.6 INTRODUCTION................................................................................. 8 ESKOM’s COMPANY BACKGROUND ................................................ 8 ESKOM’s BUSINESS CONDUCT POLICY .......................................10 PURPOSE OF THE RESEARCH .......................................................12 PROBLEM STATEMENT .................................................................14 IMPORTANCE AND BENEFITS OF STUDY .....................................17 RESEARCH PROPOSITIONS AND HYPOTHESIS ...........................18 1.6.1 Propositions ...................................
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...Report Report Question Corporate governance, how a company is run, is becoming an important issue for companies to consider due to numerous recent high-profile corporate failures. As a result, businesses are starting to use a corporate governance statement as a way to communicate their corporate governance practices and promote their ethical credentials to interested parties, such as shareholders. This statement is often incorporated into the company’s annual report. To assist with the development of good corporate governance and clear corporate governance statements the ASX Corporate Governance Council has developed a set of principles and recommendations to guide companies. Explain what corporate governance is and its relationship to business ethics. Select the key principles in the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations that focus on ethics and explain how the principle relates to ethics. Evaluate how well your BACC001 Accounting for Business company’s corporate governance statement communicates information related to the ethics focused principles in the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations. Reading List Corporate Governance Principles and Recommendations (ASX Corporate Governance Council 2010) ‘Corporate Governance and Business Ethics: Insights from the strategic planning experience’ (Bonn & Fisher 2005) ‘Examining Corporate Governance Policies as a Routine Part...
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...The Development of Business Ethics.” Determine at least two (2) additional reasons for studying business ethics beyond those discussed in the text. Analyze the development of business ethics since the 1960s and postulate what issues will be at the heart of business ethics ten (10) years from now. Explain your rationale. Discussion 2 Select an organization of your choice and identify both primary and secondary stakeholders and their most likely issue(s) with the organization. (150 words) As the company’s mission is totally dependent on the needs of stakeholders, hence they hold an important position and place in the company’s profit and sales. The groups of stakeholders associated with Toyota include: its customers, its employees, the business partners of Toyota, Local communities and global societies and lastly shareholders. The customers are the high priority stakeholders of the company. For this group of stakeholders, Toyota always strive to provide highly safe and reliable vehicles. Employees of Toyota are also far more satisfied with the services and facilities provided to them by the company. The key points of Toyota for its employees include: a developing environment for human resource, diversity and inclusion in the working area, provision of safety and healthy working environment, enhancing confidence in its employees and showing pride and loyalty towards its employees. Looking at the different financial parameters, stakeholders position and financial data of the company...
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...“Good corporate Governance as a vital constituent of Corporate Social Responsibility” with reference to Indian MNCs Type: Literature review Name of Research Scholar: Santosh Basavaraj, Research Scholar, Anna University of Technology, Coimbatore. Research Supervisor: Dr.B.Rajasekaran, Principal, RKKR School of Management Studies Ettimanickampatty, Coimbatore Road, SALEM – 637 504 Contact Number & Email ID:997209785,santosh_bs2001@yahoo.com Purpose: This research paper aims at gaining an insight into the concepts of Corporate Governance and CSR which enables this researcher to generate new ideas on concepts under study. The central purpose of this research paper is to determine how companies Corporate Social Responsibility practices blended in Corporate Governance and to study integration of CSR with CG which enable future researchers to study how companies are able to sustain its Competitive edge with good CSR activities by considering some good practices followed in industry and their critical evaluations in recent events. This research sets the foundation for future study and refers literature to develop a new hypothesis in the concept of CSR. An additional objective of this research paper is to review the Literature on Corporate governance and studying the Juxtaposition of CG and ethical issues for better corporate social responsibility. Design/methodology/approach This is an exploratory research design and it is used to seek insight in general nature...
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...IIBM Institute of Business Management Examination Paper MM.50 Corporate Governance Section A: OBJECTIVE TYPE (20 marks) 1. A 2. C 3. A 4. A 5. C 6. B 7. B 8. D 9. B 10. A 11. B 12. B 13. A 14. C 15. C 16. A 17. B 18. A 19. A 20. B SECTION B: Short Notes (10 marks) 1. Clause 49 of the Listing Agreement to the Indian stock exchange comes into effect from 31 December 2005. It has been formulated for the improvement of corporate governance in all listed companies. In corporate hierarchy two types of managements are envisaged: i) companies managed by Board of Directors; and ii) those by a Managing Director, whole-time director or manager subject to the control and guidance of the Board of Directors. --As per Clause 49, for a company with an Executive Chairman, at least 50 per cent of the board should comprise independent directors. In the case of a company with a non-executive Chairman, at least one-third of the board should be independent directors. --It would be necessary for chief executives and chief financial officers to establish and maintain internal controls and implement remediation and risk mitigation towards deficiencies in internal controls, among others. --Clause VI (ii) of Clause 49 requires all companies to submit a quarterly compliance report to stock exchange in the prescribed form. The clause also requires that there be a separate section on corporate governance in the annual report with a detailed compliance...
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...Ethical and Moral Issues in Business Kenneth H. Niuman University of Phoenix Ethical and Moral Issues in Business How do you differentiate between ethics and morality.?How does ethics impact governance in business organizations. Ethics and morals may seem the same on the face of it, but if one were to analyze, there is definitely some difference. Morality refers to an adopted code of conduct within an environment and a set of agreed upon rules for what is 'right' and 'wrong'. Morals have formed the spine of modern society, religion and every individual's conscience. The conceptions changed in time and take on a new meaning. For example, killing a human being is immoral in any society but when on the battlefield soldiers are given medals for killing their enemy soldiers.. In a way, morality is in sync with ethics. While one is abstract in understanding, the other is defined and in the form of written code. Morality addresses the ethical queries on the moral outcome of a specific situation. The code of conduct formulated probes prohibitions, controversial behavior, standards of belief systems and social conformity of morally 'right' behavior. Moral codes define 'appropriate' and 'expected' activity. Community morality is usually defined via commentaries and codes of authority. Morality is better understood as an assimilation of beliefs about the essentials to lead a 'good' life. It is not to be confused with religious or fanatic or political preception. Moral codes are...
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...SEMESTER 2 2011 CPA 118 ETHICS AND GOVERNANCE CPA - ETHNIC SEMESTER 2 2011 MODULE 1 ACCOUNTING AND SOCIETY 1.05 1.05 Part A: Ineraction with society Depictions of A/cting Depiction Defeating depictions defeat Fig 1.1 new bean counter How to become professional? 3 aspects 1.06 Recruiting the best Beard(1994),Smith and Briggs(1999) and Simnik and Felton(2006) Friedman& Lyne(2001);Albrecht and Sack(2000);Coate et al.(2003) Jeacle: colourful accountant linked to corporate collapses 1.07 Moral agency Biddle(2006) Value creation - key to maintain high standards Moral agent - refer to individual making moral judgement for others Moral agent theory based on concept " act appropriotely and professionally" 1.08 Technical functions and social impact Understanding A/cting A/cting defination - Macquarie Dictionary - Technical practice - bookkeeping Not Prefect def - AAA(American A/cting Association) -communication skill… 1.09 Social impact of A/cting + impact - based on historic A/cting info professional capabilities - technical knowledge,soft skill & experience 1.10 Social impact example - A/cting and the GFC "mark-to market" Lonergan (2009) - if A/cting causative factor in GFC 2008/2009 1.11 Q 1.1 Logergan 'standard setters'slow reaction only cause GFC ? NO How wisdom come out? - experience /knowledge Distinguishing feature - building relevant wisdom over time Parker et al. (1989) - induce other behaviour Miller(1994) - intrinsically and inredeemable social impact IMPACT Macro level:...
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...Table of content 1. Question 1 1. Introduce to Corporate Governance 2. Governance makes a Difference 3. Failures of Corporate Governance 4. Failures in Major companies 5. Reform of Corporate Governance 6. Conclusions 2. Question 2 1. Introduce to Cadbury Report 2. Conclusions 3.0 References Question 1 Based on the above it has been stated that “the problem is not a failure to comply with rules but a failure in governance practice”. Do you agree and why? (10 Marks) Introduce to Corporate Governance Corporate governance looks at issues pertaining to transparency, integrity, effectiveness and accountability in the management of the affairs, and all other activities of an organization. Management is concerned with the company’s operations, functions and financial performance; hence, corporate governance aims to involve the quality assurance of the operation of the board itself. The concern is for the welfare, good performance, corporate ethics and morality, as well as social and public responsibility for the good corporate citizenship. Corporate governance also involves in system to ensure that the organization’s obligations to its major stakeholders. The relationship among the many stakeholders and the way of corporation is directed and governed is therefore created. Stakeholders might include customers, employees, creditors, suppliers and distributors, the...
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...Corporate Governance and Ethical Responsibility Research Paper LEG500- Law, Ethics, and Corporate Governance May 2013 This purpose of this research paper is to state the importance of corporate governance and ethical responsibility in a business, and to be able to justify the health and safety rights that employees have in corporations. According to Solomon (2010), corporate governance is a keystone aspect of a business, in which companies are directed and controlled. Corporate governance is important in the aspect of maintaining corporate success and not overstating social welfare. A weak corporate governance system can lead to the fall of the corporation, stated by Solomon (2010); the wake of massive collapses due to weak corporate governance has developed an aggressive attention on reforming corporate governance. (Solomon, 2010) Ethical responsibility is the defined by first understanding that ethics is knowing what should be done. Our text reflects that ethics is not one that is governed by legislation or a judicial system however it is based on the critical consciousness which goes into deciding what is right and wrong through a thought and emotional process for a particular situation. Having ethical responsibility in a corporation is vital for the integrity of the company and what the brand stands for. Ethics holds one accountable; insuring that what is right is properly implemented. (Halbert and Ingulli, 2012) In the case of Dr. DoRight, on a daily bases...
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...2011 CPA 118 ETHICS AND GOVERNANCE MODULE 1 ACCOUNTING AND SOCIETY 1.05 1.05 Part A: Ineraction with society Depictions of A/cting Depiction=描述 Defeating depictions defeat =挫败 Fig 1.1 new bean counter How to become professional? 3 aspects 1.06 Recruiting the best Beard(1994),Smith and Briggs(1999) and Simnik and Felton(2006) Friedman& Lyne(2001);Albrecht and Sack(2000);Coate et al.(2003) Jeacle: colourful accountant linked to corporate collapses 1.07 Moral agency Biddle(2006) Value creation - key to maintain high standards Moral agent - refer to individual making moral judgement for others Moral agent theory based on concept " act appropriotely and professionally" 1.08 Technical functions and social impact Understanding A/cting A/cting defination - Macquarie Dictionary - Technical practice - bookkeeping Not Prefect def - AAA(American A/cting Association) -communication skill… 1.09 Social impact of A/cting + impact - based on historic A/cting info professional capabilities - technical knowledge,soft skill & experience 1.10 Social impact example - A/cting and the GFC "mark-to market" Lonergan (2009) - if A/cting causative factor in GFC 2008/2009 1.11 Q 1.1 Logergan 'standard setters'slow reaction only cause GFC ? NO How wisdom come out? - experience /knowledge Distinguishing feature - building relevant wisdom over time Parker et al. (1989) - induce other behaviour Miller(1994) - intrinsically and inredeemable social impact IMPACT Macro level: all types of business to gain power...
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...INTRODUCTION ........1 2.0 WHAT IS CORPORATE GOVERNANCE 2 3.0 CORPORATE GOVERNANCE THEORIES…………………….……………..........3 3.1 Fundamental corporate governance theories……………………..……………….3 3.1.1. Agency Theory………………………………………………………………3 3.1.2. Stewardship Theory…………………………………………………………4 3.1.3. Stakeholder Theory………………………………………………………….4 3.1.4. Transaction Cost Theory…………………………………………………….4 3.1.5. Political Theory……………………………………………………….……..5 4.0 NEED FOR CORPORATE GOVERNANCE………….……………………………..5 5.0 PILLARS OF GOOD CORPORATE GOVERNANCE…….......……………………7 5.1 Leadership…………………………………………………………………...…….7 5.2 Appointments to the board…………………………………….…………………..7 5.3 Strategy & values………………………………………………………………….7 5.4 Structure & Organisation………….....……………………………………………8 5.5 Corporate performance……………………………………………………..……..8 5.6 Corporate compliance……………………………………………………………..8 5.7 Corporate communication………...……………………………………………….8 6.0 OVERVIEW OF DEVELOMENTS IN CORPORATE GOVERNANCE………..….8 6.1 Global Initiatives……………………..……………………………………………8 6.2 Corporate Governance in Kenya……………………………………..……………9 7.0 IRRESISTABLE CASE FOR CORPORATE GOVERNANCE………………........11 8.0 CONCLUSION………………………………………………………………………11 REFERENCES………………………………………………………………………..…12 1.0 INTRODUCTION In today’s environment corporate Governance is not a luxury but a dire necessity...
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...An Improved Pedagogy of Corporate Finance: a Constrained Shareholder Wealth Maximization Goal by Michael R. Santos , Gina Vega , John T. Barkoulas INTRODUCTION Bloom's taxonomy (1956) has guided pedagogical structure and innovation for half a century in the United States, and its focus on developmental learning remains relevant and instructive for us. The six developmental levels (knowledge, understanding, application, analysis, synthesis, and evaluation) separate basic knowledge acquisition from the critical thinking and analytical skills necessary for making ethical decisions or judgments. Answering questions about business ethics requires knowledge from multiple disciplines, including philosophy, psychology, political science, sociology, economics, finance, organizational management, and law. Analyzing such a vast body of data in ethical frameworks requires the highest levels (analysis, synthesis, and evaluation) of critical thinking as expressed in the taxonomy. Corporate governance, an interdisciplinary subject addressed in all these disciplines, explores the inter- workings of both for-profit firms and not-forprofit firms and is an area requiring business students to evaluate ethical issues when making decisions. Despite the broad responsibility of teaching corporate governance in the finance classroom, the pedagogy of finance has been restricted to ideas derived primarily from economics, statistics, and finance. Competing ideas from other disciplines are generally...
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...Introduction………………………………………………………………………….……...3 2. Organization and business environment overview………………………………….….3 3. Code of Ethics Beiersdorf AG…………………………………………………….………3 4. Code of Ethics Procter & Gamble...…………………………………………….………..5 5. Code of Ethics related business issues in comparison………………………………..7 6. Summary………………………………………………..…………………………………..8 1. Introduction This paper is presented as the option B term paper for the Business Ethics elective course within the MBA program. The goal is to give an overview and an analysis of the codified Codes of Ethics of two major companies within the business field of consumer goods. The respective companies will be the Beiersdorf AG as the requested German example and actor in this field and Procter & Gamble as the world leading competitor in this area of business. The term paper will be structured in the following way. First the aim is to give a brief overview about the companies in question and the area they are doing business in. In a second step the Codes of Ethics of both enterprises will be analyzed using the framework and criteria for an effective Code of ethics which were presented in class. Thirdly, the aim is to give a personal opinion on the presented facts and compare the companies in their approach. The paper is going to be concluded with the presentation on historical and current issues of ethical questions which are applicable for Beiersdorf and P&G. 2. Organization and business environment overview Both companies which...
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...Financial management is the management of any business finances or an organization in order to achieve the business financial objective (Jones & Bartlett, 2010). There are many financial decisions that are made on a day to day basis for any transactions to occur (Jones & Bartlett, 2010). These decisions are made according to the organizations fiscal objectives (Jones & Bartlett, 2010). But we all may have one question and that question is “How well are health care organizations’ finances and are these health care organizations financial records accurate? The four elements of financial management are recognized as planning, controlling, organizing and directing, and decision making (Jones & Bartlett, 2010). These are decisions are made on what kind of task is being performed. Some organizations strain over three of the elements which are planning, controlling (organization and directing is part of the controlling element), and decision making (Jones & Bartlett, 2010). 1. Planning can be defined as: The financial manager identifies these four elements as steps for an organization to accomplish their objectives. The planning process is to identify and take the initial steps to accomplish those objectives (Jones & Bartlett, 2010). 2. Controlling: Financial manager will take control and making sure that each part of the organization is following the plans that have been put into place (Jones & Bartlett, 2010). 3. Organizing and directing: This is a decision made by the financial...
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