Ethics and Corporate governance

Question 1

What is corporate governance

Answer 1

How the company is run and managed

Question 2

Give examples of poor corporate governance (6)

Answer 2

Management of company dominated by a single individual
Lack of board involvement in decision making (infrequent board meetings )
Poor internal controls/ no internal audit function
Lack of segregation and supervison
Lack of contact with shareholders
Focus on short term profitability

Question 3

What is Corporate responsibility and sustainabiluty

4
3
3

Answer 3

Social - working conditions, responsible marekting, community relations, data privacy
Enviromental - Carbon footprint, emmisions, waste
Economic - profitable, stable jobs, job creation

Question 4

Ethics plan

Answer 4

I tolerate independent & ignore capital advances
ITI&ICA

I - Identify Issue (general business issue or corporate governance issues
T - Identify principles under threat
I & I state why it is an issue and the impacts on the business and stakeholders
C Consider why it might not be an issue
A Action

Question 5

Define sustainability

Answer 5

Sustainability is the ability to meet the needs of the present without compromsing the ability of future generations to mee their own needs