...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...
Words: 388 - Pages: 2
... Introduction • The Cadbury report was once referred to as The Report of The Committee on the Financial Aspects of Corporate Governance. The report was published in December 1992, following the recommendations of the Cadbury Committee. • Address concerns about the working of the corporate governance system. • The Committee made it its purpose to address the financial aspects of corporate governance and out of this produced a Code of Best Practice. The Committee • The Cadbury Committee was established in May 1991 by the Financial Reporting Council, the London Stock Exchange, and the accountancy profession. • Reasons: Increasing lack of investor confidence in the honesty and accountability of listed companies. Financial collapses of listed corporations. Auditors who signed off a set accounts which turned out be a misrepresentation of the facts, and about losing its self-regulatory role. Lack of board accountability for such matters as directors’ pay. Corporate Governance Contemporary corporate governance started in 1992 with the Cadbury report in the UK Cadbury was the result of several high profile company collapses is concerned primarily with protecting weak and widely dispersed shareholders against self-interested Directors and managers Cadbury Report 1992 The committee on the financial aspects of corporate governance’ The Code of Best Practice’ (1992) Voluntary code ▪ But for listed companies a compliance statement was required ...
Words: 871 - Pages: 4
.... | 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...
Words: 915 - Pages: 4
...e\ An Assignment On Corporate Governance and Firm Performance: A Conceptual Review on Bangladesh Perspective Course Code: FIN-5211 Submitted To: Masrick Hasan Mehedi Lecturer Department of Finance Jagannath University, Dhaka Submitted By: Mohammad Faisal Hossain ID: 07882719 On behalf of Group-7 MBA, 2nd Batch Department of Finance Jagannath University, Dhaka Date of submission: 12th January, 2014 Members of Group-7 |Serial |Name |ID No | |1 |Mohammad Faisal Hossain |M110203037 | |2 |Md. Arif Billah |M110203032 | |3 |Zahidul Islam |M110203003 | |4 |Atikur Rahman Chowdhury |M110203025 | |5 |Sankar Kumar Roy |M110203040 | |6 |Rashel...
Words: 1046 - Pages: 5
...NiCE Working Paper 09-108 April 2009 Quality of Financial Reporting: measuring qualitative characteristics Ferdy van Beest Geert Braam Suzanne Boelens Nijmegen Center for Economics (NiCE) Institute for Management Research Radboud University Nijmegen P.O. Box 9108, 6500 HK Nijmegen, The Netherlands http://www.ru.nl/nice/workingpapers 1 Abstract We construct a compound measurement tool to comprehensively assess the quality of financial reporting in terms of the underlying fundamental qualitative characteristics (i.e. relevance and faithful representation) and the enhancing qualitative characteristics (i.e. understandability, comparability, verifiability and timeliness) as defined in ‘An improved Conceptual Framework for Financial Reporting’ of the FASB and the IASB (2008). The operationalization of these qualitative characteristics results in a 21-item index. Using 231 annual reports from companies listed at US, UK, and Dutch stock markets in 2005 and 2007, we test our compound measurement tool on internal validity, inter-rater reliability (Krippendorff’s alpha) and internal consistency (Cronbach’s alpha). Our findings suggest that the measurement tool used in this study is a valid and reliable approach to assess the quality of financial reports. The measurement tool contributes to improving the quality assessment of financial reporting information, fulfilling a request from both the FASB and the IASB (2008) to make the qualitative characteristics operationally...
Words: 13269 - Pages: 54
...Proposed Research Work 1. Project Title: Redefining the Concept of Sovereignty in a Globalized World Order 2. Introduction The theme of the present paper is to analyze the effect and impact of globalization on the sovereignty of states. While pointing out the effect, impact and even the need of globalization, albeit in a structured pattern, in the present era, the author intends to examine the concepts of industrial revolution, neo-liberalization, international corporate governance, millennium development goals, the need for international institutions and the international regulatory framework in different areas like international trade, financial services sector, environmental protection etc., with a view to question the relevance of the traditional concept of sovereignty in the present globalized world. * Origin of the research problem: Research Question Whether the traditional concept of sovereignty of states has undergone a sea change in the wake of massive globalization? The Industrial Revolution which is referred to the period from the 18th to the 19th century brought the winds of change during which major changes in agriculture, manufacturing, transport, and technology had a profound effect on the socio-economic and cultural conditions of the human race. Starting in the United Kingdom, and then subsequently spreading throughout Europe, North America, and eventually the world, the Industrial...
Words: 1264 - Pages: 6
...England and Wales (1975), Financial Accounting Standards Board (1980), Institute of Chartered Accountants in Scotland (1988), Accounting Standards Board (1991)). The qualitative characteristics viewed as desirable for the fulfilment of the fundamental objective of communicating decision-useful measurement recognize that all of these characteristics are not simultaneously achievable and that some trade-off is necessary. Examines the nature of this conflict of objectives and attempts to quantify the extent of the conflict for different user groups. Introduction Since the late 1960s research efforts regarding a conceptual framework have been commissioned in response to mounting public and professional pressure with regard to the nature of corporate reporting and deficiencies in the accounting standard setting process. Peasnell[1, p. 254] with respect to the Financial Accounting Standards Board (FASB) conceptual framework observes: “it perceives a need to show that its heart and mind are in the right place: to demonstrate that it is trying by logical means to develop accounting standards based on principles of general appeal”. If accounting standards and the resulting disclosures are to meet the varying and potentially conflicting needs of all user groups, then such standards should be adaptive to the changing requirements of interested parties. The presence of a conceptual framework should guide the standard...
Words: 3323 - Pages: 14
...Application Paper #2 Improved Corporate Governance will improve Japan’s Earning Power Luis C. Mendoza Corporate Governance GB-6215(Online) Spring 2015 18 April 2015 Can improved Corporate Governance improve Japan’s earning power? Tradition and honor in Japan’s culture are very strongest traits which develop the foundations of daily lives and how corporations conduct business. A tradition in Japan is taking an all male work team, salesmen and clients to visit a bar/club after hours that are greeted by a “Hostess”. A “Hostess” is a woman who is paid to flirt with men. These visits are sometimes mandatory which corporations cover fully and label them as “entertainment expenses” (Smith, Japan Flirts with Goverance Reform, 2015). One of Japan’s biggest problems is poor corporate governance (Smith, Bloomberg View, 2015). This is an example and evidence that poor corporate governance to a degree is liable for the potential drought of business investments into Japan’s economy (Smith, Japan Flirts with Goverance Reform, 2015). This is an example of why Japan’s Prime Minister Shinzo Abe’s made a decision to develop and incorporate Abenomics in 2014. Japan, as a society with extreme high value to culture and respect, views and approaches corporate governance has been very different for the past few decades compared to the United States. Japan’s board members are typically internal corporate managers rather than independent directors. Independent directors are very uncommon...
Words: 2049 - Pages: 9
...Sustainability Research Sustainability is of increasing significance for businesses, communities, and national economies around the globe. Sustainability addresses economic, environmental, and social issues, but it also incorporates cultural dimensions. In the face of globalisation, societies seek to preserve their cultural values and community identity, while still participating in the global economy. In New Zealand the importance of sustainability issues has been recognised by central and local government policies, environmental and economic development agencies, and business leaders. Two of the active business groups focusing on these issues are the New Zealand Business Council for Sustainable Development (NZBCSD) and the Sustainable Business Network (SBN). Waikato Management School is working in partnership with both of these key business groups on sustainability projects and events. The aim of these initiatives is to develop and share insights on sustainable economic development and sustainable enterprise success. The Waikato Management School is distinctive in its commitment ‘to inspire the world with fresh understandings of sustainable success’. These fresh understandings will be achieved through our high quality research that can influence policy makers, excellent teaching, through the knowledge and values our graduates take into the workforce, through our continued consulting with business and the outstanding experiences offered to everyone who connects...
Words: 35722 - Pages: 143
...Finance Risk & Compliance International Financial Reporting Standards Global outlook Banking & Finance Feature Is corporate governance a modern fantasy? Andrew Higson discusses the reality of financial reporting and asks if corporate governance still has a role to play in the modern business world. W hat is the difference between the collapse of Enron and the recent collapse of the banking sector? Well, the obvious answer is that Enron’s demise was not as significant. Yet, in the wake of Enron’s collapse, the Sarbanes-Oxley Act was rushed into law in the USA in order to cure the perceived corporate ills of, and give back credibility to, corporate America. Organisations around the world have since spent thousands of hours becoming Sarbanes-Oxley compliant in order to be able to continue trading with companies in the USA. At the centre of Sarbanes-Oxley was its focus on strengthening corporate governance procedures to prevent fraud and mismanagement – but the chaos in the banking sector must raise a question over the success of Sarbanes-Oxley and, more significantly, over the whole idea of corporate governance. way in which an organisation is run and the way in which its results are presented to the outside world. So where does this leave the non-executive directors? One of the main elements in the recent development of corporate governance has been the growth in the use of non-executive directors. One of their roles is to challenge and contribute to the development...
Words: 1559 - Pages: 7
...The Investor Relations Society ‘Determinant Factors for Best Investor Relations’ 1. Best Communication of strategy, performance and key performance indicators (KPIs) in the annual report |Business and financial review |Best Practice | |requirements | | |1. ‘a fair review of the company’s |Sensible and understandable explanation of the company’s business. | |business’ |Balanced perspective and clear statement of the company’s strategy. | | |Description of the company’s markets, including regulatory environment and competitive position. | |2.‘the development and performance |Commentary related to the group strategy and progress in achieving objectives. | |of the company’s business during the|Trade or channel relations (where applicable), e.g. service levels, distribution, display, trade customer satisfaction. | |financial year’ |Innovation, e.g. number of new products, new products' revenue and margin as share of total, R&D investment. | | ...
Words: 1256 - Pages: 6
...Business Education At Crossroads in India Abstract: The aim of this study is to examine various untapped opportunities and challenges faced by business education in India. In today’s rapidly changing market, business programs in India are under scanner as they face criticisms on various aspects of the program like continuous rise in non-accredited institutes, selection process getting changed year after year, curriculum not being as dynamic as the market, quality of students being varied in the same college, no consistency in placement, value system getting shattered, role of faculty, student involvement in studies, work-fun balance in college. This study is help to gain a better understanding of business school to effectively address these challenges. In this study we would be carrying out research for gaining an insight into the current trend of business schools through surveys, questionnaire, in-depth interview and empirical methods. Based on the analysis of the data, suggestions would be made for improvement in quality of business education in India. Keywords: Quality of Business education, Challenges, Opportunities. Introduction: Management as a field of study has been developing since 18th century. From its evolution to now, management education has changed drastically. It has developed according to changing needs of the industry. Past globalization and advent of the internet, the world has become ‘flat’ as described by Thomas Friedman. Therefore almost everything...
Words: 1095 - Pages: 5
...Introduction: Widely known as the champion of the energy industry, Enron is suddenly faced with a corporate crisis in the form of a scandal. This scandal involves not only Enron’s accounting practices but also its corporate governance and culture (Lawrence & Weber, 2008). This report will recommend some potential strategies for Enron to move forward from the scandal. To do this, we must incorporate stakeholder theory, which “argues that corporations serve a broad public purpose; to create value for society” (Lawrence & Weber, 2014, p 6.). This means that Enron must take responsibility for the scandal it created and take actions to regain its stakeholders’ confidence. To accomplish this, we will first identify and analyze Enron’s primary stakeholders, and then point out the key problems along with possible solutions. Finally, we will end the analysis with the best solutions that Enron should enact. Primary Stakeholders: The three most salient stakeholders are Enron’s shareholders, employees, and the government. We choose these three based on their interests, power, relevance, likelihood to form coalitions, and also due to the legitimacy and urgency of their claims. The first important stakeholder is none other than Enron’s shareholders. The owners of Enron invested their money relying on Enron’s false financial statements, only to lose billions of dollars. They are likely to form coalitions and engage in shareholder activism. In fact, they have the legal power to...
Words: 1727 - Pages: 7
...FORM C: ABDC 2013 JOURNALS LIST REVIEW RATING UPGRADE SUBMISSION *** PLEASE NOTE THAT: FORM C is designed to formalise requests to the ABDC Journals Review Panel 2013 seeking an upgrade in rating of an academic journal which is currently included and rated in the ABDC 2010 list e.g. seeking to raise a rating from a “B” to an “A” journal. Please complete a separate form relating to each journal for which you wish to make a submission of this type. Journal Title: MALAYSIAN ACCOUNTING REVIEW QC1. FIELD of RESEARCH (FoR) PANEL to which this request is directed (tick one box only): 0806 Information Systems 1401-1499 Economics 1501 Accounting 1502 Finance 1503 Management 1504-07 Marketing/Tourism/Logistics 180105/1801025 Business and Taxation Law QC2. WHAT ABDC 2013 RATING DO YOU PROPOSE FOR THIS JOURNAL? A* A B C QC3. WHAT ABDC 2010 RATING WAS THIS JOURNAL ASSIGNED? A* A B C QC4. WHAT ERA 2010 RATING WAS THIS JOURNAL ASSIGNED? A* A B C not applicable QC5. NOMINATE “THE BEST” COMPARATOR JOURNAL (journal from the ABDC 2010 list that is most similar in research quality): ASIAN REVIEW OF ACCOUNTING QC6. JOURNAL INFORMATION Editor’s Name: PROF. DR NORMAH OMAR Web Address: http://ari.uitm.edu.my/mar.html Institution: UNIVERSITI TEKNOLOGI MARA NATURE OF SUBMISSION QC7. Primary submitter type (tick one box only) Higher Education Institutional Submission (e.g. formal submission from Business...
Words: 3679 - Pages: 15
...To describe corporate governance as a subject of topical interest would be masterly understatement. What had already become a hot topic in Australia during 2001 has since burst out across the world, involving the direct intervention of the President of the United States. I’d say that Monash University has got its timing pretty right. The interesting question is whether this initiative would have received any interest or support in Australia two years ago. There is little doubt that by the end of the 1990s the business community was becoming wearied by the concept of corporate governance, seeing it as somewhat irrelevant, even passé: a response to the no longer relevant excesses of the 1980s. Many years of sustained economic growth, and Australia’s remarkable survival of the financial crisis in Asia, had led to a period of complacency about corporate governance - over time it became institutionalised and compliance focused, more driven by process and legal liability management for corporate officers than by notions of shareholder protection and wealth creation. In retrospect this self-confidence looks particularly short-sighted. At the very time when most of Asia, supported by the World Bank and the IMF, was focussed on the importance of corporate governance and institution building, the more developed economies (including Australia) assumed that their existing standards were adequate. We were, I think, partly lulled by the knowledge that some of the key economic ...
Words: 2312 - Pages: 10
