unit 3 revised Flashcards
(15 cards)
What is responsible leadership?
Ensuring sustainable success by taking ownership of the consequences of business activities on economic, social, and environmental levels.
Define corporate sustainability.
Support for sustainable development and the organisation’s long-term performance, stability, and survival.
Define corporate social responsibility (CSR).
Legal and economic obligations to address needs in their social and physical environments.
What are the four kinds of Strategic Corporate Social Responsibility (CSR)?
- Strategic CSR - Social good drives business success.
- Ethical CSR - Doing what’s right beyond the law.
- Altruistic CSR - Giving back with no direct gain.
(philanthropy) - Coerced CSR - Acting responsibly due to external
pressure.
What does the triple bottom line measure in corporate sustainability?
- Economic impact
- Social impact
- Environmental impact
What is corporate governance?
Exercising ethical and effective leadership to achieve an ethical culture, good performance, effective control, and legitimacy.
Explain the agency problem.
The separation between ownership of capital and management leads to managers acting in their own best interests rather than those of the owners.
Study how the major corporate governance parties have changed.
Unit 3, page 10.
In the strategic management process, corporate governance is critical in the following areas: FIC
Formulation
Implementation
Control and evaluation
What are the signs of ethical collapse in corporate governance?
- Pressure to meet the numbers
- Far away and silent
- Sycophantic executives and an iconic CEO
- A weak board
- Conflicts of interest
- Overconfidence
- Social responsibility as the only measure of goodness
What is the purpose of the King 1 Reports on corporate governance?
To provide principles and practices for good financial, social, ethical, and environmental practices.
What are the 7 primary characteristics of good corporate governance as per the King II Report?
- Discipline
- Transparency
- Independence
- Accountability
- Responsibility
- Fairness
- Social responsibility
What does the King III Report emphasise?
- Effective leadership
- Sustainability as a primary imperative
- Corporate citizenship
- Implementation of sustainability reporting
List some key points adopted in King III.
Integrated reporting
Internal auditing
Sustainability, ethics and reputation are fundamental
An explanation of the financial crisis
What is the focus of the King IV Report on Corporate Governance?
Ethical leadership, integrated thinking, corporate citizenship, stakeholder inclusivity, and integrated reporting.
