Premium Essay

Governance Case Study

In: Business and Management

Submitted By ivan050
Words 452
Pages 2
Governance Case Study
Impetus for Corporate Governance –
Corporate governance in Australia was introduced in 2003 when the ASX Corporate Governance Council introduced the “Principles of Good Corporate Governance and Best Practice Recommendation”. The governance regulations introduced by Australia’s ASX came as a result from investors’ concerns in the quality of corporate governance, following the collapse of some major companies, such as HIH, Harris Scarfe, Ansett, and OneTel. Since the guidelines were introduced, Australia’s ASX has issued revisions and updates that were designed to improve corporate governance in Australia and help avoid further collapses of major Australian companies.
In contrast, corporate governance guidelines were introduced in South Africa in 1994, with the publication of the “King Report on Corporate Governance”. The introduction of corporate governance guidelines came as a result of democracy taking hold of South Africa and the country’s readmission into the community of nations and the world economy. The King Report was designed to help align the interests of corporations and its many stakeholders, including individuals, companies, and society.
The United Kingdom introduced corporate governance guidelines in 1992, with the Cadbury Report on “The Financial Aspects of Corporate Governance”. The guidelines were introduced partly because of the financial situation in Europe, which brought to light the public’s concerns over the standards for financial reporting and accountability. The Cadbury Report sought to clarify the responsibilities of key executives in corporations and introduce a code for Governance in the United Kingdom.
The Most Comprehensive Governance Guidelines – One of the goals of South Africa’s King Report was to provide corporate governance guidelines that advocated the interests of a wide range of stakeholders.…...

Similar Documents

Free Essay

Case Study

...Tutorial 8 – Chapter 7 Global Alliances Tutorial activity 1: Ongoing Semester Case Study – Businessville Hotel. Beijing Businessville Hotel is proving to be extremely successful. It has just been announced that a major world trade expo is to be held in Ho Chi Minh City. Around the World Hotels is interested in providing accommodation for some of the expected thousands of delegates. However, there is no time to build a new hotel. Around the World are considering approaching an existing hotel group to form an alliance. • What issues need to be considered when establishing an alliance in this case? Choosing the right form of governance. The benefits of cooperation versus the dangers of new competition. Managing the reputation. Staffing needs. • What form would you suggest the alliance take? Non-equity strategic alliance. Because this is a short term event and this is the easiest form of strategic alliance to form in such a short time. The company could work with another hotel group to forge a similar deal as airline code-sharing. This would allow Around the World Hotels guests to potentially book through their website, and receive the same premium guest experience in the hotels in Vietnam. The reputation of Around the World Hotels could be used to attract more guests to the hotel in Vietnam. • Outline the major challenges for Around the World Hotels in establishing the type of alliance you recommend. How would you suggest they overcome them? Ensuring a......

Words: 907 - Pages: 4

Premium Essay

Case Study: Ethics and Local Governance

...IT Consultation for Mr. Green Kenya Newton Cynthia Orth CIS 329 – Administering Desktop Clients   Ethics and Local Governance Ethics has been defined as “moral principles that govern a person’s or group’s behavior”. Ethics affect different professions in different ways. Since citizen data is basically a bunch of records and files, I looked up a code of ethics for Record Managers locally and internationally. I found that there are multiple groups that work throughout the world helping governments with the records that they keep, the only one that I actually found that had a code of ethics was the Institute of Certified Records Management (CRM). The CRM’s code of ethics is extensive and very well put together. You have to actually become a member and if you are accused of unethical behavior you have to go through an ethical review board which determines if you can continue to use their designation. Two ethical issues that I believe are associated with the consolidation of citizen records in the London Borough of Bren are respecting the rights of privacy of individuals whose lives may be documented in intimate detail in those records and government agencies and other people can misuse the gathered information for their personal gain. The privacy issue would probably be my biggest concern since there can be very sensitive information about disabilities, mental and physical health issues, etc. listed in them. Government agencies can use the information to profile......

Words: 753 - Pages: 4

Premium Essay

Case Study

...CASE STUDY – LETTER FROM PRISON ETHICS 1. In an interview with the New Zealand Herald, Stephen Richards commented “World Com bankrupt, Enron bankrupt, Adelphia bankrupt. Computer Associates is a radically different environment to those.” Do you agree/disagree with Richards’ comment? Why/Why not? Discuss the ethical implications of the fraud committed at Computer Associates. In your response you should refer to Part A of the Code of Ethics of the Australian Accounting Profession discussed in Chapter 29 of the text. (25 marks) EARNINGS MANAGEMENT 2. “Numerous pieces of evidence suggested that earnings management – the managerial use of discretion to influence reported earnings – was a widespread corporate practice at Computer Associates.” Distinguish between accrual-based earnings management and real activities manipulation. Explain what is meant by a trade-off between the two. Which type of earnings management was practised at Computer Associates? Academic support should be provided (see the attached reference list) from at least two articles. (25 marks) CORPORATE GOVERNANCE 3. Corporate governance is defined as the system by which companies are directed and controlled" (Cadbury Committee, 1992). Discuss the role of specific corporate governance mechanisms that may have alleviated earnings management at Computer Associates. Academic support should be provided (see the attached reference list) from at least two articles. (25 marks) LOBBYING 4. The......

Words: 1088 - Pages: 5

Free Essay

Case Study Case Study Case Study

...This case study is an excellent example of how different types of parties can be brought together in a large scale transaction and how the original energy of those early meetings can be lost over time. I imagine that when Anthony Athanas was purchasing those old piers back in the 1960s many, if not all, of his colleagues, friends, and family members told him that he was off his rocker. I’m sure Athanas was looking at this land as his family’s ticket to financial prosperity and somewhat of a legacy that he could leave to his descendants for years and years to come. One of the items I wish the case would have divulged is the amount of money that Athanas had invested in the properties. For me this information would have given an insight to his net worth and how much he had riding on this investment. I assume it was substantial given his actions later in the process. Twenty years later Athanas’ dreams came true and all those naysayers were more than likely green with envy. The amount of pride Athanas’ had in his investment at that moment had to have been insurmountable. Being approached by a big time real estate development company and their extremely wealthy client, Hyatt Corporation, must have made Athanas feel larger than life and made him feel like something he isn’t, which is a developer himself. The case doesn’t give much insight into whether Athanas had any representation or anyone consulting him throughout the process. From the beginning, I saw this as matchup...

Words: 1190 - Pages: 5

Premium Essay

Case Study

... SHC 3083 Business Ethics and Corporate Governance Section 2 Case study on Governance Failure at Satyam NAME | I.C NUMBER | MATRIC. NUMBER | BONG LUI LUI | 910710-15-5078 | AH100063 | EILEEN WONG PAK YEE | 911107-13-6184 | AH100066 | LAI JIA SIN | 901026-05-5500 | AH100072 | LIM SIN RUI | 910412-02-5152 | AH100074 | LINDA CHAN CHIN HUA | 910522-13-5360 | AH100075 | Table of Contents 1 Introduction 1 1.1 Summarization 1 2 Key Player 3 2.1 B. Ramalinga Raju and B. Rama Raju 3 2.2 Rammohan Rao 3 2.3 Auditors 3 2.4 Bank 3 2.5 Gopalakrishnan and Srinivas Talluri 3 3 Main issue 4 3.1 Weakness of corporate governance 4 3.2 Greedy of external parties 4 3.2.1 Pricewaterhouse Coopers (PwC) 4 3.2.2 World Bank Staff 5 4 Implication 6 4.1 Implication towards company 6 4.2 Implication towards stakeholder 7 4.3 Implication towards economy 8 4.4 Conclusion of Implication 8 5 Discussion 9 5.1 Theory of Ethics 9 5.1.1 Governance Failure and Resignation 9 5.1.2 Secretive Whistleblower 10 5.2 Moral Values 11 5.2.1 Responsibility as a chairman 11 5.2.2 Responsibility as board of directors 12 5.2.3 Loyalty and Truthfulness 12 6 Conclusion and Recommendation 14 6.1 Role played by corporate governance mechanism 14 6.2 Responsibilities and ways to prevent fraud 14 References 16 Introduction We are studying a fraud case which happened at Satyam. In this case study, we will divide into few parts to do analysis.......

Words: 4498 - Pages: 18

Premium Essay

Case Study: Ethics and Local Governance

...Case Study 1: Ethics and Local Governance Introduction to Information Technology July , 2013 In 2007 a Transformational Government mandate focused on customer budget reductions of 3 percent year to year increasing the emphasis on regionally shared services for the London Borough of Brent. The area is approximately 270,000 citizens with the London Borough of Brent information scattered across numerous departments without the ability to share any of the information across the enterprise. The decision to create a master client index that will clean up duplicate and fragmented data files, improve operational efficiencies, there are over 1.5 million records of the 2700,000 citizens that will be matched and linked from several different databases, providing a real time view of each customer’s data, this process will be very beneficial and achieve optimal operational efficiency. The two potential ethics issues associated with the consolidation of citizen records in the London Borough of Bren. First the privacy of the information of the citizens within those records may contain intimate details about their lives that should be kept private would probably be my biggest ethics issues concern. Some people enjoy their privacy and don’t want their information readily available for people to see without their consent. Some of information of the citizens records listed within the database could be very sensitive and personal information about someone’s disabilities, medical records,......

Words: 787 - Pages: 4

Premium Essay

Case Study

...CASE STUDY: THE GENERAL MANAGER I. TIME CONTEXT Acme Kemico, a small chemical outfit, was established in the early part of 1986. It was started as a single proprietorship selling paints and house sprays. The office set-up was composed of nine persons namely: a General Manager who was also the owner of the company; an Office Manager who served as the recruiting officer, accountant and overall supervisor; a lawyer who acted as the company’s legal counsel; five salaried salesmen who are directly under the office manager; and a secretary who was bookkeeper and typist for the company. The general manager was a young man of thirty and a chemistry graduate from one of the leading universities, the office manager as a Master in Business Administration degree. She was a part time professor in business school. A year after, she work as part time in the company and took a full time teaching job. In 1996, management converted the company into a corporation and consequently changed the name. The General Manager-Proprietor became the President of the corporation and at the same time Chairman of the Board of Directors. An Executive Vice-President was hired to handle the financial and production functions of the corporation. He had five men in his staff. He was also a member of the Board of Directors. The Office Manager was promoted to the position of General Manager. The number of salesmen increased to eighteen. Additional product lines were acquired by the corporation and new......

Words: 1340 - Pages: 6

Premium Essay

Cisco Internal Governance Case Study

...market position today. The Problem The implementation of the cross-functional business councils greatly strengthened both Cisco’s competitive position as well as their organizational culture. However, Cisco now faces the problem of how to sustain and implement the new internal governance system across new and expanding business lines within the company in addition to maintaining the new collaborative culture while retaining its customer-centricity focus. Adjustments will need to be made to ensure that systems can be scaled to address new market transitions. The three councils that were originally created to foster open and transparent communication have developed but a plan for their future evolution relative to the company’s planned expansion needs to be outlined to ensure that the enterprise teams remain unified and functional. Purpose of Change “While emerging markets and acquisitions were key in helping Cisco survive the [economic] downturn, the company’s 2001 organizational restructuring played an even more important role”. In response to the 2001 market downturn, Cisco Systems implemented a major organizational restructuring scheme that transformed the company’s internal governance system from a decentralized and siloed system to a centralized and collaborative system. Cisco was able to recognize that a centralized and functional structure was necessary in order to avoid product and resource redundancies; however by doing so, Cisco also risked losing its......

Words: 1888 - Pages: 8

Premium Essay

Tyco Case Study Corporate Governance Issue

...Kozlowski and former chief financial officer (CFO) Mark H. Swartz in handcuffs after being arrested and charged with misappropriating more than $170 million from the company. They were also accused of stealing more than $430 million through fraudulent sales of Tyco stock and concealing the information from shareholders. The two executives were charged with more than thirty counts of misconduct, including grand larceny, enterprise corruption, and falsifying business records. Another executive, former general counsel Mark A. Belnick, was charged with concealing $14 million in personal loans. Months after the initial arrests, charges and lawsuits were still being filed—making the Tyco scandal one of the most notorious of the early 2000s. This case begins with a brief history of Tyco, followed by an explanation of Tyco CEO L. Dennis Kozlowki’s rise to power. As Kozlowki rose to become the second-highest-paid CEO, some red flags pointed toward the impending disaster. Most notably, Kozlowski’s aggressive approach to business, his lavish lifestyle, his clashes with the former, more conservative CEO, and his ousting of those who criticized Tyco’s activities all acted as indicators of Kozlowki’s unethical behavior. This analysis also shows how a decentralized corporate structure can make it difficult, even for the board of directors, to effectively monitor a firm’s dealings and finances. Kozlowski’s fall and the repercussions of his dirty dealings (financial penalties and jail time)......

Words: 4957 - Pages: 20

Premium Essay

Finm024 Corperate Governance Case Study

...Corporate Social Responsibility and Governance (FINM024) Assessment 1 – Case Study Aim: The case study aims at testing students’ understanding of the role of corporate governance in today’s business, how to establish good corporate governance practices, how to maintain an effective internal control system and assess control risk, and how to protect the organisation against fraud. Instructions: Students are required to read the case carefully before attempting the questions. All sources used must be cited using the ‘Harvard Referencing Guide’ in order to avoid plagiarism. Students MUST structure their answers as required. Please try to avoid language and grammatical mistakes, writing incorrect answers, and writing more than what is needed. Please read the questions carefully before answering them. Academic Honesty: Plagiarism will not be tolerated and could lead to your failure, so please make sure to use your own words in answering the case and to cite all the sources used. Please refer to Harvard Referencing guide to understand how to properly cite the sources used. Deadline and Submission: The deadline for submission is 10th April, 2015. All submissions have to be via Turnitin on NILE. Any submissions via email will be automatically discarded without prior notice. Students are only allowed to submit their assignment once, so no draft submissions will be accepted. Late submissions will not be accepted. If there are circumstances beyond the student’s control that......

Words: 2336 - Pages: 10

Premium Essay

Case: Governance and Sustainability at Nike

...POM 642/ 442 Case: Governance and Sustainability at Nike This case was about the struggles with sustainability with in Nike as well as the fashion industry. Greenpeace came out and slandered Nike, Adidas, Puma, and several other fashion designers for pollution resulting in the manufacturing process of their products. There are several chemicals used in the process of manufacturing clothing and shoes. Several chemicals are also used in the Dying process. Although these facility are 3rd parties and these locations are not used by Nike it has fallen on them along with their competitors to reduce pollution with in the manufacturing process. At Nike the key decision makers are Hannah Jones and Eric Sprunk who have to present their findings to Nike’s CEO Matt Parker for final buy off. Eric and Hannah realize they must come up with a unified solution to these difficult questions issues. What should be the timeline for reduction of chemicals along with what is the expected reduction? This is an extremely important matter, Nike is fully aware of the scarcity of water along with the implications of hazardous materials in the water which several of the chemicals are unable to be removed during the water treatment process. A commitment to Greenpeace was made to remove all toxins in the water by 2020, it seems as though this commitment has been much more difficult to attain than originally expected. The question is does Nike change their goal and what could be the negative......

Words: 589 - Pages: 3

Free Essay

Good Governance Case Study

...Good Governance Case Study Case Study 1 Mini Case: ACCT-05 Business Ethics Program Challenges Encounter: The action made started with the acquisition of additional asset through a loan acquired from a falling competitor. The assets obtained were a problem knowing that all the information about the inventory was nowhere to be found resulting to a sales decline. Without Rick knowing, Russ as a president holds large amount of checks, as a result they had encountered trouble about the reimbursement of the petty cash fund. With regard about the profit, they earn smaller amount than they usually receive because there had been a large markup which exceed its cost eight times. Self-centeredness is the major problem experienced in the given case. As for Russ, the majority stockholder, he told no one about the sales thinking that he could have something in case of bankruptcy or foreclosure. As for the point of view of Rick, the controller of the firm, he kept all the fraud information to himself and he always agreed to what the president says to earn his boss’s trust and also because of the reason that he might lose his job. Outcomes: For Rick’s concern he might as well tell the truth and do what is right without considering only his own sake because consequences are going to be much worse if he do the other way around. If ever they continue to do those frauds they had done, they might end up worn down. They could suffer and lead to bankruptcy. But if the actions they......

Words: 369 - Pages: 2

Premium Essay

The Effects of Corporate Governance Mechanism. a Case Study of Nigerian Listed Banks

... 1.1 BACKGROUND TO THE STUDY The experience of business failure and financial scandals around the world brought about the need for good governance practices. The United States of American, Brazil, Canada, Germany, France, England, Nigeria all witnessed financial failures in the 90s and in the recent periods. This view was supported by Bell et al (2000), that the last 20 years witnessed several bank failures throughout the world. Financial distresses in most of these countries were attributed to a high incidence of non – performing loans, weak management and poor credit policy. In the view of Omankhanlen (2011), the development was said to have reflected the deterioration in the quality of credit facilities, coupled with the ongoing reclassification of bank assets. The banking institution occupies a vital position in the stability of the nation’s economy. It plays essential roles on fund mobilization, credit allocation, payment and settlement system as well as monetary policy implementation. Management is expected to exhibit good governance practices to ensure achievement of it objectives and avoid the consequences of failure leading to loss of confidence. This view was supported by Wilson (2006) that poor corporate governance can lead market to lose confidence in the inability of a bank to properly manage it assets and liability, including deposits which could in turn trigger a bank liquidity crisis. Oluyemi (2005) considered corporate governance to be of special......

Words: 11916 - Pages: 48

Premium Essay

Unethical Corporate Governance (Hsbc Case)

...Unethical Corporate Governance (HSBC Money Laundering Case: “Too Big to Fail” does not mean “Too Big to Jail”) About HSBC HSBC Holdings plc is a British multinational banking and financial services company headquartered in London, United Kingdom. It is one of the world’s largest banking and financial services organizations. In 1865, the first branches of the bank were first opened in Hong Kong and Shanghai. HSBC is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited. In 1991, it was founded in London by the Hongkong and Shanghai Banking Corporation to act as a new group holding company. The company refers to both the United Kingdom and Hong Kong as its "home markets". HSBC has around 7,200 offices in 85 countries and territories across Africa, Asia, Europe, North America and South America, and around 89 million customers. As of 31 December 2013, it had total assets of $2.671 trillion, of which roughly half were in Europe, the Middle East and Africa, and a quarter in each of Asia-Pacific and the Americas. As of 2012, it was the world's largest bank in terms of assets and sixth-largest public company, according to a composite measure by Forbes magazine (Witty Traders, 2014). HSBC consists of four business groups: * Commercial Banking; * Global Banking and Markets (investment banking); * Retail Banking and Wealth Management; * Global Private Banking. HSBC has a dual primary listing on the Hong Kong Stock Exchange and......

Words: 3308 - Pages: 14

Premium Essay

Case Study

...Proceedings of the 41st Hawaii International Conference on System Sciences - 2008 A Study of the Causal Relationship between IT Governance Inhibitors and Its Success in Korea Enterprises Chi-Hoon Lee, Jung-Hoon Lee, Jong-Sung Park, Kap-Young Jeong Graduate School of Information, Yonsei University, Seoul, Korea chihoon@yonsei.ac.kr, jhoonlee@yonsei.ac.kr, bizajou@yonsei.ac.kr, jeongky@yonsei.ac.kr Abstract In recent years, the emergence of the term IT Governance (ITG) has pointed to the increasing importance for business of effecting an alignment between its strategic direction and IT units. Many leading organizations have turned to ITG to pursue gains in efficiency, accountability, and regulatory and other forms of compliance, without, however, being able to implement coherent IT schemes on account of a number of challenging issues. Despite the growing interest of academics and practitioners in this area (as attested in recent publications), few studies have characterized the practical inhibitors frustrating the implementation of effective ITG. This paper, therefore, aims to examine empirically how inhibiting features associated with ITG affect the success of IT activities. Through a literature review, we identify 5 factors that work to restrain ITG implementation. Further, this work presents survey data gathered from 96 leading companies in Korea reporting the status of ITG practices according to a specific instrument of its own design. 1....

Words: 5949 - Pages: 24

One Piece 757 | Telecharge Le Grand Bain (2018) truefrench film en entier | Chuunibyou demo Koi ga Shitai! Ren