Strategic Governance And Ethics PdfBy Sara F. In and pdf 02.12.2020 at 11:46 10 min read
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- Corporate Governance - Definition, Scope and Benefits
- MGT703 Strategy, Governance and Ethics - University of the Sunshine Coast, Queensland, Australia
- Corporate Strategy, Governance and Ethics in the Global Environment
- CA51 Strategy, Governance and Ethics PDF notes
Revenue mix by business lines and geographies. Corporate governance, ethics and thought leadership. Generating lasting value for our clients.
Subscription price CiteScore 1. Company directors need to move beyond governance concerns that deal with their functional responsibilities towards understanding how their personal values and actions affect the organisations they lead, and how in turn these affect local and global communities. IJBGE provides a professional forum to address these issues. IJBGE aims to critically explore business and managerial strategies, actions, responsibilities and accountabilities for survival in a highly transparent and dynamic global world. IJBGE publishes high quality papers from a wide variety of disciplinary orientations on the general subject of business governance and ethics.
Corporate Governance - Definition, Scope and Benefits
Since the origin of commerce, the ethical basis of business has been in question. In the ancient Greek civilisation Aristotle could readily distinguish between the basic trade required for an economy to function, and trade for profit which could descend into unproductive usury Solomon , Most major world religions cast a sceptical eye on business, including Christianity, Islam and Confucianism.
As technological change advanced with the industrial revolution, there occurred a wider diffusion of ownership of many large companies as no individual, family or group of managers could provide sufficient capital to sustain growth.
However any hope of a wider sense of fiduciary duty in corporations was eroded away in the later decades of the twentieth century in the Anglo- American world, as capital markets became more aggressive and unstable, and executive compensation was propelled upwards by stock options. A succession of cycles of booming economies, followed by market collapse and recession, culminated in — in the first global financial crisis, which was also a crisis in governance and regulation.
The most severe financial disaster since the Great Depression of the s exposed the dangers of unregulated markets, nominal corporate governance, and neglected risk management. What also appeared in stark relief were an economic system and corporations and managers singularly lacking in any moral compass. It has been argued that the dominant logic in this era, in both finance and law of agency theory , had reduced managers to mere agents of shareholder principles.
As governments, regulators, and financial institutions examined what had gone wrong during the crisis, a new sense of the importance of robust regulation, alert corporate governance, and stronger ethical guidelines became widespread.
In effect what is now emerging is an integration of corporate governance, corporate social responsibility and corporate sustainability which potentially offers a new framework for ethical business. This newly-emerging ethical framework for business provides a stronger base for the exercise of moral values and ethical reasoning.
This suggests an ethical alignment of individuals, corporations, and the economic system, which is captured in the definition of corporate governance offered by Cadbury, and adopted by the World Bank:.
Corporate governance is concerned with holding the balance between economic and social goals and between individual and communal goals.
The governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations and society. This definition highlights the importance of corporate governance in providing the incentives and performance measures to achieve business success, and secondly in providing the accountability and transparency to ensure the equitable distribution of the resulting wealth.
Finally the significance of corporate governance in enhancing the stability and equity of society recognises a more positive and proactive role for business.
Rather than corporate governance and regulation being inherently restrictive, they can be a means of enabling corporations to achieve the highest goals of corporate achievement. Equally a more positive approach to business ethics can be imagined Solomon , :. Business ethics is too often conceived as a set of impositions and constraints, obstacles to business behavior rather than the motivating force of that behavior … properly understood, ethics does not and should not consist of a set of prohibitive principles or rules, and it is the virtue of an ethics of virtue to be rather an intrinsic part and the driving force of a successful life well lived.
Its motivation need not depend on elaborate soul-searching and deliberation but in the best companies moves along with the easy flow of interpersonal relations and a mutual sense of mission and accomplishment.
The balance of pursuing market opportunities while maintaining accountability has proved a defining challenge for business enterprise since the arrival of the joint-stock company in the early years of industrialism.
The accountability and responsibility of business enterprise was constantly subject to question, and historically failed this test—often in the view of the public. He argued that business transactions do not occur in isolation, but have wider social and economic consequences which need to be considered, impacting directly on employment, health and the environment. He insisted that legal regulation may be required to ensure protection from abuses, but that this could never replace a general sense of responsibility in business that goes beyond the letter of the law, preventing competitive forces from leading to a race to the bottom.
The debate concerning the true extent of the accountability and responsibility of business enterprise has continued to the present day, punctuated by occasional public outrage at business transgressions, and calls for greater recognition of the social obligations of business. Such forthright views did not remain at the level of academic speculation, but often were translated into legal, policy and business interpretations and practice.
For example in Teck Corp Ltd v. Millar , the Supreme Court of British Columbia, while retaining the identification of company interests with those of shareholders, nonetheless was prepared to grant directors a licence under their fiduciary duties to take into account wider stakeholder interests Teck Corp Ltd v.
Millar , — :. But even accepting that, what comes within the definition of the interests of the shareholders? A classical theory that once was unchallengeable must yield to the facts of modern life. In fact, of course, it has. If today the directors of a company were to consider the interests of its employees no one would argue that in doing so they were not acting bona fide in the interests of the company itself.
Similarly, if the directors were to consider the consequences to the community of any policy that the company intended to pursue, and were deflected in their commitment to that policy as a result, it could not be said that they had not considered bona fide the interests of the shareholders.
Wedderburn , 12 documents an equivalent deep-seated and practical commitment of corporate responsibility to a wide constituency in the post-war beliefs of leaders of the British business community. In Australia, the Corporations Act Section obliges directors and other corporate officers to exercise their powers and discharge their duties:. A recent generation of financial economists helped to translate this broad shareholder primacy principle into a narrow pursuit of shareholder value.
This restrictive definition of shareholder value has often been associated with short-termism and a neglect of wider corporate responsibilities in the interests of immediate profit maximisation. Concerns have arisen that directors who do wish to take account of other stakeholder interests may be exposed. However there is a wider interpretation of shareholder value which suggests that only when all of the other constituent relationships of the corporation—with customers, employees, suppliers, distributors and the wider community—are fully recognised and developed, can long-term shareholder value be released.
In — the first global financial crisis exposed the dangers of unregulated markets, nominal corporate governance, and neglected risk management. Traditionally, commercial law in many European countries has supported a sense of the wider social and environmental obligations of companies, which continues despite a recent enthusiasm for the principle of shareholder value as some large European companies for the first time seek the support of international investors.
The United Kingdom has stood apart from Europe as an influential exponent of the Anglo-American market-based approach to corporate governance. However, in an effort to jettison the company-law rhetoric instituted in the 19th century, and to make the law more accessible, a Company Law Review CLR steering group was established.
Current accounting and reporting fail to provide adequate transparency of qualitative and forward-looking information which is of vital importance in assessing performance and potential for shareholders, investors, creditors and others. These issues were extensively considered in the United Kingdom for several years in the deliberations of the Modern Company Law Review. Two approaches were considered:. In considering these approaches, the essential questions of what is the corporation, and what interests it should represent are exposed to light, as Davies eloquently argues , 4 :.
The crucial question is what the statutory statement says about the interests which the directors should promote when exercising their discretionary powers. The common law mantra that the duties of directors are owed to the company has long obscured the answer to this question. Although that is a statement of the utmost importance when it comes to the enforcement of duties and their associated remedies, it tells one nothing about the answer to our question, whose interests should the directors promote?
This is because the company, as an artificial person, can have no interests separate from the interests of those who are associated with it, whether as shareholders, creditors, employers, suppliers, customers or in some other way.
So, the crucial question is, when we refer to the company, to the interests of which of those sets of natural persons are we referring? As a member of the Corporate Law Review Steering Group, Davies goes on to defend the enlightened shareholder-value view suggesting that the pluralist approach produces a formula which is unenforceable, and paradoxically gives management more freedom of action than they previously enjoyed.
The pluralist or multifiduciary model rests on a social, not a property, view of the corporation. It identifies the corporate purpose with maximizing total constituency utility. This is an indeterminate outcome measure which poses particular difficulties in translation into a legally enforceable duty.
The indeterminacy of the criteria for decision and performance measurement also points to a probable loss of accountability for directors since it offers broad scope to justify most decisions. It is difficult to resist the conclusion of the British review that either it confers a broad unpoliceable policy discretion on managers themselves or just gives a broad jurisdiction to the courts. The model needs either practical rehabilitation or a superior performance metric.
It is not clear where either might be found. In the resulting British Company Law Reform Bill the enlightened shareholder-value view has prevailed in clause , which defines the essential directoral duty as:. This clause replaces the discretion of directors to have regard for stakeholder interests with a duty for directors to do this Davies , 5 :. The aim is to make it clear that although shareholder interests are predominant promotion of the success of the company for the benefit of its members , the promotion of shareholder interests does not require riding roughshod over the interests of other groups upon whose activities the business of the company is dependent for its success.
In fact, the promotion of the interests of the shareholders will normally require the interests of other groups of people to be fostered. The interests of non-shareholder groups thus need to be considered by the directors, but, of course, in this shareholder-centred approach, only to the extent that the protection of those other interests promotes the interests of the shareholders. The reform manages this balancing act by suggesting that the pluralist objectives of maximizing company performance to the benefit of all stakeholders can best be served by professional directors pursuing commercial opportunities within a framework of standards and accountability:.
The overall objective should be pluralist in the sense that companies should be run in a way which maximizes overall competitiveness and wealth and welfare for all. But the means which company law deploys for achieving this objective must be to take account of the realities and dynamics which operate in practice in the running of a commercial enterprise.
It should not be done at the expense of turning company directors from business decision-makers into moral, political or economic arbiters, but by harnessing focused, comprehensive, competitive decision-making within robust, objective professional standards and flexible, but pertinent accountability CLR , It is likely that the modern company law proposals will over time facilitate the wider and more conscious adoption by British companies of social and environmental commitments, and the willingness to report fully on them.
In time it is possible that such social and environmental commitments will become part of widespread company and management best practice, in the way that the commitment to quality in the production of goods and services has become universal.
Moreover, just as the United Kingdom in the publication of the Cadbury code of corporate governance ultimately influenced a considerable number of other countries to adopt a similar code, it is possible that other countries, particularly that share a common law tradition with the United Kingdom, will begin to review their company law with similar objectives in mind. Moral liability occurs when corporations violate stakeholder expectations of ethical behaviour in ways that put business value at risk.
One reason why the agenda of corporate responsibility is increasingly irresistible is that while legal liability of corporations is deepening, what has been described as an emerging and hardening moral liability is exerting increasing influence.
In this respect the legislative process lags behind what society thinks, values and respects. There is an increasing convergence between these two forms of liability, as corporations come under scrutiny both by the law and—often more immediately and pointedly—by public opinion SustainAbility , 5.
The narrow focus of corporate governance exclusively upon the internal control of the firm and simply complying with regulation is no longer tenable. In the past this has allowed corporations to act in extremely irresponsible ways by externalising social and environmental costs. But increasingly in the future the license to operate will not be given so readily to corporations and other entities. A license to operate will depend on maintaining the highest standards of integrity and practice in corporate behavior.
Corporate governance essentially will involve sustained and responsible monitoring of not just the financial health of the company, but the social and environmental impact of the company.
A substantial increase in the range, significance and impact of corporate social and environmental initiatives in recent years suggests the growing materiality of sustainability. Once regarded as a concern of a few philanthropic individuals and companies, corporate social and environmental responsibility appears to be becoming established in many corporations as a critical element of strategic direction, and one of the main drivers of business development, as well as an essential component of risk management.
Corporate social and environmental responsibility CSR seems to be rapidly moving from the margins to the mainstream of corporate activity, with greater recognition of a direct and inescapable relationship between corporate governance, corporate responsibility, and sustainable development.
The burgeoning importance of this newly revived movement is demonstrated by the current frequency and scale of activity at every level Calder and Culverwell , At the national level a growing number of governments in Europe, and across the globe, have identified strongly with the call for corporate social and environmental responsibility, even with the evident difficulties in applying the Kyoto Protocol and creating an effective international climate-policy regime.
A large number of leading corporations have signed up for the Global Reporting Initiative and more than 2, international corporations now publish reports on their CSR performance many accessible on www.
In the GRI published new guidelines on materiality, stakeholder inclusiveness, sustainability context, and completeness of reporting GRI Finally, there are a proliferating number of consultancies, NGOs and campaign groups offering guidance and actively monitoring CSR activities along the entire length of the global value chain World Bank Questions are often addressed regarding the sincerity of corporate social and environmental initiatives; the legality of company directors engaging in these concerns; equally, the legality of the trustees of investment institutions attending to these interests; and the verifiability of CSR activities and outcomes.
It is important to clarify the continuing and emerging legal and commercial basis for corporations to pursue corporate social and environmental responsibility; the ongoing legal and material support for institutional trustees to prioritize socially and environmentally responsible investments; to examine developments in verification on corporate reporting of CSR performance; and to consider some illustrations of current best practice. David Vogel in a review conducted for the Brookings Institute, The Market for Virtue: The Potential and Limits of Corporate Social Responsibility , contends there are many reasons why companies may choose to behave more responsibly in the absence of legal requirements to do so, including strategic, defensive, altruistic or public-spirited motivations.
However despite pressure from consumers for responsibly-made products, the influence of socially-responsible investors, and the insistent call for companies to be accountable to a broader community of stakeholders, there are important limits to the market for virtue:. CSR is best understood as a niche rather than a generic strategy: it makes sense for some firms in some areas under some circumstances.
Many of the proponents of corporate social responsibility mistakenly assume that because some companies are behaving more responsibly in some areas, some firms can be expected to behave more responsibly in more areas.
This assumption is misinformed.
MGT703 Strategy, Governance and Ethics - University of the Sunshine Coast, Queensland, Australia
As the course title indicates, Strategy, Governance and Ethics is a combination of three subjects strategic management , corporate governance and business ethics. The study covers the management principles, strategy thought, governance and ethics. This paper is intended to equip the candidate with the knowledge and competencies in strategy formulation and implementation, governance and appreciation of ethics. These materials include item-by-item notes as outlined in the revised Kasneb CIFA syllabus as well as focused questions from previous examinations by the board. In addition, our platform offers a forum for learners to discuss issues related to a certain subject.
Management can be defined as the process of planning, organizing, directi ng and controlling the resources of an organization in order to achieve its goals efficiently. This definition highlights the following concepts:. The origin of Evolution management can be traced back to the days when man started living in groups. History reveals that strong men organized the masses into groups according to their intelligence, physical and mental capabilities. Evidence of the use of the well recognized principles of management is to be found in the organization of public life in ancient Greece, the organization of the Roman Catholic Church and the organization of military forces. Thus management in some form or the other has been practiced in the various parts of the world since the dawn of civilization.
It seems that you're in Germany. We have a dedicated site for Germany. This book brings together research works, ideas, critical reviews and strategic proposals encompassing various ethical and corporate governance issues in workplaces and organizations around the globe. For the most part, organizations are managed by policies, guidelines and systems. Good ethics and solid corporate governance help to tie these three elements together so that an effective and successful organization is established.
Formulate and implement a strategic plan; Practice the tenets and principles of good governance; Comply with ethical principles in an organisation. CONTENT.
Corporate Strategy, Governance and Ethics in the Global Environment
Since the origin of commerce, the ethical basis of business has been in question. In the ancient Greek civilisation Aristotle could readily distinguish between the basic trade required for an economy to function, and trade for profit which could descend into unproductive usury Solomon , Most major world religions cast a sceptical eye on business, including Christianity, Islam and Confucianism. As technological change advanced with the industrial revolution, there occurred a wider diffusion of ownership of many large companies as no individual, family or group of managers could provide sufficient capital to sustain growth.
Boards are facing a complex new reality as a result of Covid
CA51 Strategy, Governance and Ethics PDF notes
Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It is all about balancing individual and societal goals, as well as, economic and social goals. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the two. These dimensions of corporate governance should not be overlooked.
Фонтейн молча обдумывал информацию. - Не знаю, ключ ли это, - сказал Джабба. - Мне кажется маловероятным, что Танкадо использовал непроизвольный набор знаков. - Выбросьте пробелы и наберите ключ! - не сдержался Бринкерхофф.
Ком… мандер, - задыхаясь, пробормотала она, сбитая с толку. - Я думала… я думала, что вы наверху… я слышала… - Успокойся, - прошептал. - Ты слышала, как я швырнул на верхнюю площадку свои ботинки. Сьюзан вдруг поняла, что смеется и плачет одновременно. Коммандер спас ей жизнь. Стоя в темноте, она испытывала чувство огромного облегчения, смешанного, конечно же, с ощущением вины: агенты безопасности приближаются. Она глупейшим образом попала в ловушку, расставленную Хейлом, и Хейл сумел использовать ее против Стратмора.
2 thoughts on “KASNEB NOTES – STRATEGY, GOVERNANCE AND ETHICS SAMPLE NOTES”
Я тебе помогу, если заплатишь. - Сколько? - быстро спросил Беккер. - Сотню баксов. Беккер нахмурился. - У меня только песеты. - Какая разница.
Итальянец посмотрел на деньги, потом на свою спутницу. Девушка схватила деньги и сунула их в вырез блузки. - Grazie! - просиял итальянец. Он швырнул Беккеру ключи от веспы, затем взял свою девушку за руку, и они, смеясь, побежали к зданию клуба. - Aspetta! - закричал Беккер. - Подождите. Я же просил меня подбросить.
Не знаю, почему Фонтейн прикидывается идиотом, но ТРАНСТЕКСТ в опасности. Там происходит что-то очень серьезное. - Мидж. - Он постарался ее успокоить, входя вслед за ней в комнату заседаний к закрытому жалюзи окну.
- Какой же может быть ответ. - Нам необходимо число, - напомнил Джабба. - Шифр-убийца имеет цифровую структуру. - Тихо, - потребовал Фонтейн и повернулся к Сьюзан.
Комната в отеле Альфонсо XIII. Тучный немец, помахавший у него под носом рукой и сказавший на ломаном английском: Проваливай и умри. - С вами все в порядке? - спросила девушка, заметив, что он переменился в лице.