Podcast
Questions and Answers
What recognition did Alison receive for her contributions in 2013?
What recognition did Alison receive for her contributions in 2013?
- ICSA Company Secretary of the Year award
- Leadership Excellence Award
- International Governance Award
- ICSA President’s Medal for Meritorious Service (correct)
What role did Alison hold in the aBi Trust?
What role did Alison hold in the aBi Trust?
- Financial Advisor
- Company Secretary (correct)
- Chairperson
- Director of Operations
In which areas has Alison worked with the IFC/Global Corporate Governance Forum?
In which areas has Alison worked with the IFC/Global Corporate Governance Forum?
- Middle East, South Asia, and Africa
- Africa, Asia, and Eastern Europe (correct)
- Latin America, Australia, and Europe
- North America, Asia, and Africa
What is Andrew's primary area of expertise?
What is Andrew's primary area of expertise?
Which publication is Andrew associated with as an editor?
Which publication is Andrew associated with as an editor?
What role do institutional shareholders have in the governance of companies they invest in?
What role do institutional shareholders have in the governance of companies they invest in?
Why do some business leaders prefer a principles-based approach over a rules-based approach?
Why do some business leaders prefer a principles-based approach over a rules-based approach?
What concern is raised regarding UK investors and corporate governance?
What concern is raised regarding UK investors and corporate governance?
What has the evidence suggested about regulation in corporate governance?
What has the evidence suggested about regulation in corporate governance?
What practical barriers do overseas investors face regarding UK companies?
What practical barriers do overseas investors face regarding UK companies?
What was the result of Nadir's financial practices?
What was the result of Nadir's financial practices?
According to stakeholder theory, which of the following should be equal to financial objectives?
According to stakeholder theory, which of the following should be equal to financial objectives?
Who defined corporate governance in 1984 and what was the essence of his definition?
Who defined corporate governance in 1984 and what was the essence of his definition?
What ultimately happened to Nadir in relation to his sentence?
What ultimately happened to Nadir in relation to his sentence?
What aspect of corporate governance is emphasized in stakeholder theory?
What aspect of corporate governance is emphasized in stakeholder theory?
What did many banks use as collateral for loans to Nadir's companies?
What did many banks use as collateral for loans to Nadir's companies?
Which of the following best describes the responsibility of companies under stakeholder theory?
Which of the following best describes the responsibility of companies under stakeholder theory?
What was a consequence of Nadir's financial collapse?
What was a consequence of Nadir's financial collapse?
What does responsibility entail within an organization?
What does responsibility entail within an organization?
Which of the following describes accountability?
Which of the following describes accountability?
What is essential for minimizing conflicts of interest?
What is essential for minimizing conflicts of interest?
What is the role of transparency in an organization?
What is the role of transparency in an organization?
How should accountability be structured within a complex organization?
How should accountability be structured within a complex organization?
Which aspect of responsibility is critical for ethical conduct?
Which aspect of responsibility is critical for ethical conduct?
What should individuals in positions of authority provide while being accountable?
What should individuals in positions of authority provide while being accountable?
What consequence should arise from the mismanagement of authority?
What consequence should arise from the mismanagement of authority?
What is the main focus of the shareholder value approach in corporate governance?
What is the main focus of the shareholder value approach in corporate governance?
How is the concept of shareholder value evolving in some regions, particularly in Africa?
How is the concept of shareholder value evolving in some regions, particularly in Africa?
What significant aspect do Bower and Paine argue about the role of company leadership?
What significant aspect do Bower and Paine argue about the role of company leadership?
Why is it argued that shareholders should not take primacy over other stakeholder groups?
Why is it argued that shareholders should not take primacy over other stakeholder groups?
What does the doctrine of limited liability provide for shareholders?
What does the doctrine of limited liability provide for shareholders?
What is increasingly recognized about companies in relation to society and markets?
What is increasingly recognized about companies in relation to society and markets?
What challenge do shareholders typically pose to company management?
What challenge do shareholders typically pose to company management?
What is a key characteristic of the convergence of shareholder and stakeholder approaches?
What is a key characteristic of the convergence of shareholder and stakeholder approaches?
Flashcards are hidden until you start studying
Study Notes
Corporate Governance and Accountability
- Substantial debts led to the collapse of the companies owned by Nadir, with banks holding Polly Peck shares as collateral for loans.
- Nadir was convicted of theft and false accounting in 2012, receiving a ten-year prison sentence, transferred to Turkey in 2016, and released after one day.
- Stakeholder theory posits that employee relations and environmental impact should match financial goals like return on investment.
- Companies are urged to act as good corporate citizens, balancing decisions on societal and environmental impacts.
Definitions of Corporate Governance
- Various definitions exist; Bob Tricker (1984) noted governance ensures proper business management.
- The Cadbury Committee (1992) defined corporate governance as the system by which companies are directed and controlled.
- Governance frameworks have evolved, emphasizing that companies should focus on long-term sustainability, not just shareholder interests.
Convergence of Approaches
- Shareholder value and stakeholder approaches, previously seen as oppositional, are trending towards convergence.
- In common law countries like those in Africa, "best interests of shareholders" is shifting to prioritize a company's long-term sustainability.
- Bower and Paine (2017) advocate for a company-centered approach, highlighting the primacy of overall company interests over individual stakeholder groups.
Responsibility and Accountability
- Authority brings responsibility; those in power must understand and ethically exercise their authority.
- Organizations must establish clear responsibilities to avoid conflicts of interest, penalizing mismanagement of authority.
- Accountability requires transparency about the exercise of authority, applicable to owners, governing bodies, and employees.
Transparency in Corporate Governance
- Transparency measures how easily outsiders can analyze an organization’s actions, both financially and non-financially.
- Institutional shareholders are responsible for ensuring proper accountability and governance of invested companies.
- A principles-based approach is preferred by many business leaders, allowing for nuanced judgement rather than rigid rules.
- Recent scandals highlight the need for regulation to safeguard stakeholder interests and ensure good corporate governance performance.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
