The document discusses corporate governance and anti-corruption in global business. It covers topics like corruption practices and properties, taxonomy of corruption in international business, and how corruption relates to organizational environment and behavior. Corruption has various negative consequences for organizations, like competitive disadvantages. Effective corporate governance requires anti-corruption compliance programs and a culture of ethics.
Chap. 1 corporate governance in international businessMagiel Amora
Corporate governance involves the systems and processes by which companies are directed and controlled. For multinational companies, corporate governance involves mechanisms at both the parent and subsidiary levels. Key corporate governance mechanisms for multinationals include ownership concentration, board composition and independence, executive compensation, and conduct codes. Effective corporate governance requires both market-based and culture-based approaches.
This document discusses corporate governance, defining it as having four pillars: accountability, fairness, transparency, and independence. It outlines why corporate governance is important for access to financing, costs of capital, performance, valuation, and reducing risk of crises. The key parties in corporate governance are shareholders, directors, and managers. Elements that ensure good corporate governance include board practices, control environment, transparent disclosure, shareholder rights definition, and board commitment.
Corporate Governance Definition and PracticeBolaji Okusaga
This document defines corporate governance and outlines its principles and practices. It discusses the need for corporate governance due to large corporations, financial crises, and reporting issues. Corporate governance establishes accountability, fairness, transparency, and independence. It defines the relationships between a company's management, board, shareholders and stakeholders. The pillars of corporate governance are defined as accountability, fairness, protection of shareholder rights, and transparency. The document then outlines best practices for board composition, appointment of directors, separation of the chairman and CEO roles, responsibilities of directors, access to information, remuneration, audit and remuneration committees, financial reporting, delegation, and communication with shareholders.
1. The document discusses 8 principles of good corporate governance that can be applied to risk management: fairness, accountability, responsibility, transparency, independence, social responsibility, integrity, and monitoring.
2. These principles form the basis of best practices for any organization and include concepts like equal treatment, transparency in disclosing accurate performance information, and independence of directors.
3. Examples of companies in Zimbabwe demonstrating these principles through their risk management and social responsibility programs are also provided, such as the Zimbabwe Revenue Authority, POTRAZ, and Minerals Marketing Corporation of Zimbabwe.
Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled. It establishes the framework for accountability and transparency between stakeholders such as shareholders, management, customers, suppliers, and society. Effective corporate governance promotes fairness, transparency, accountability and responsibility to help companies operate efficiently, attract investment, and meet legal and social obligations.
The document discusses corporate governance and its importance. It defines corporate governance as a system for structuring and controlling companies to satisfy stakeholders and comply with legal requirements. The key components of corporate governance are a company's policies, board of directors, management, shareholders, regulators, reporting, and transparency. The case study of Satyam Computers is used as an example of poor corporate governance, as decisions were not made in the best interests of shareholders and stakeholders.
The document discusses the principles and factors affecting corporate governance. It defines corporate governance as the system used to direct and control a company. It then lists the main factors influencing corporate governance as the quality and power of boards, board appointments, board procedures and meetings, financial and operational reporting, and risk management systems. Finally, it outlines the key principles of good corporate governance as the rights of shareholders, equitable treatment of shareholders, responsibilities of stakeholders and boards, and disclosure and reporting.
The document discusses various issues related to corporate governance in India such as problems in corporate governance, recent corporate scams, reasons for poor governance, and reforms undertaken to improve governance. It provides definitions of corporate governance from various reports and outlines theories of governance such as agency theory, stakeholder theory, and stewardship theory.
Chap. 1 corporate governance in international businessMagiel Amora
Corporate governance involves the systems and processes by which companies are directed and controlled. For multinational companies, corporate governance involves mechanisms at both the parent and subsidiary levels. Key corporate governance mechanisms for multinationals include ownership concentration, board composition and independence, executive compensation, and conduct codes. Effective corporate governance requires both market-based and culture-based approaches.
This document discusses corporate governance, defining it as having four pillars: accountability, fairness, transparency, and independence. It outlines why corporate governance is important for access to financing, costs of capital, performance, valuation, and reducing risk of crises. The key parties in corporate governance are shareholders, directors, and managers. Elements that ensure good corporate governance include board practices, control environment, transparent disclosure, shareholder rights definition, and board commitment.
Corporate Governance Definition and PracticeBolaji Okusaga
This document defines corporate governance and outlines its principles and practices. It discusses the need for corporate governance due to large corporations, financial crises, and reporting issues. Corporate governance establishes accountability, fairness, transparency, and independence. It defines the relationships between a company's management, board, shareholders and stakeholders. The pillars of corporate governance are defined as accountability, fairness, protection of shareholder rights, and transparency. The document then outlines best practices for board composition, appointment of directors, separation of the chairman and CEO roles, responsibilities of directors, access to information, remuneration, audit and remuneration committees, financial reporting, delegation, and communication with shareholders.
1. The document discusses 8 principles of good corporate governance that can be applied to risk management: fairness, accountability, responsibility, transparency, independence, social responsibility, integrity, and monitoring.
2. These principles form the basis of best practices for any organization and include concepts like equal treatment, transparency in disclosing accurate performance information, and independence of directors.
3. Examples of companies in Zimbabwe demonstrating these principles through their risk management and social responsibility programs are also provided, such as the Zimbabwe Revenue Authority, POTRAZ, and Minerals Marketing Corporation of Zimbabwe.
Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled. It establishes the framework for accountability and transparency between stakeholders such as shareholders, management, customers, suppliers, and society. Effective corporate governance promotes fairness, transparency, accountability and responsibility to help companies operate efficiently, attract investment, and meet legal and social obligations.
The document discusses corporate governance and its importance. It defines corporate governance as a system for structuring and controlling companies to satisfy stakeholders and comply with legal requirements. The key components of corporate governance are a company's policies, board of directors, management, shareholders, regulators, reporting, and transparency. The case study of Satyam Computers is used as an example of poor corporate governance, as decisions were not made in the best interests of shareholders and stakeholders.
The document discusses the principles and factors affecting corporate governance. It defines corporate governance as the system used to direct and control a company. It then lists the main factors influencing corporate governance as the quality and power of boards, board appointments, board procedures and meetings, financial and operational reporting, and risk management systems. Finally, it outlines the key principles of good corporate governance as the rights of shareholders, equitable treatment of shareholders, responsibilities of stakeholders and boards, and disclosure and reporting.
The document discusses various issues related to corporate governance in India such as problems in corporate governance, recent corporate scams, reasons for poor governance, and reforms undertaken to improve governance. It provides definitions of corporate governance from various reports and outlines theories of governance such as agency theory, stakeholder theory, and stewardship theory.
The document discusses corporate governance and research methodology. It defines corporate governance and discusses its key stakeholders. The objectives of the research are outlined, which are to analyze corporate governance practices of BSE-30 companies over 5 years and evaluate the importance of corporate governance from investors' and company secretaries' viewpoints. The research methodology discusses the population, sample size, sampling method, and data sources for the research.
The document discusses corporate governance requirements for companies in India. It defines corporate governance as a set of standards that aim to improve a company's image, efficiency, effectiveness and social responsibility. Some key requirements discussed include:
- Board of directors must have at least one woman director and at least 50% non-executive directors.
- There must be at least four board meetings per year with a maximum gap of 120 days between meetings.
- Companies must have audit, nomination & remuneration, and stakeholders relationship committees.
- Detailed criteria are provided for independent directors regarding their appointment, tenure, and separation from the company.
- Related party transactions require audit committee and shareholder approval depending on
Corporate governance involves the systems and processes by which companies are directed and controlled, and addresses the relationships among stakeholders such as management, shareholders, customers, and communities; the roles of the board of directors and senior executives include setting strategy, overseeing risk management and financial reporting, and appointing the CEO, with the chairman leading the board and the managing director running day-to-day operations.
It consists meaning of corporate governance, clause 49 of listing agreement, initiatives for governing practices in India and drivers for the growth of corporate governance in India.
This is a part of syllabus of the Business ethics of MBA.
Thapas Sir Presentation ppt =priyanka rai -ICBM-SBE HYDERABADam12sd34
Corporate governance involves balancing economic and social goals as well as individual and group interests. The primary purpose is to create wealth legally and ethically by satisfying key stakeholders. Good governance requires mechanisms for internal control by boards and managers as well as external control through regulations, markets and stakeholders. In India, corporate governance initiatives began in the 1990s led by industry groups and later the securities regulator SEBI. Key reforms strengthened board independence and financial disclosure standards. While standards have improved, further training of directors and ensuring the spirit not just letter of regulations remains an ongoing challenge.
This document discusses the role of corporate governance in enhancing value for corporations. It defines corporate governance and outlines its key principles such as transparency, accountability, and ethical behavior. The document then discusses the historical origins of corporate governance principles in India and how governance frameworks have developed over time in response to corporate scandals through acts, codes and committee recommendations in countries like the US, UK and India. Overall, the document provides an overview of the evolution and fundamental goals of corporate governance systems.
This document discusses corporate governance, which focuses on how corporations are operated and managed. It covers decision making processes, communication between management, shareholders, and workers, and the sharing of rights and responsibilities. Corporate governance provides checks and balances to prevent abuse and ensures decisions are made with all stakeholders' best interests in mind. Key aspects of corporate governance include the board of directors, management, shareholders, and other stakeholders. The principles of corporate governance are fairness, transparency, fiduciary duty, reliability, and respecting stakeholder rights.
This powerpoint presentation is prepared by reviewing the article entitled "A Case for Global Corporate Governance Rules : An Auditor’s Perspective" by Robert S Roussey. This is presented in a seminar on corporate governance at School of Management, Tribhuvan University.
Corporate governance refers to the processes, customs, policies, laws, and institutions affecting how a company is directed, administered or controlled. It involves relationships between stakeholders and the goals for which the corporation is governed. According to the Cadbury Committee, corporate governance is defined as the system by which companies are directed and controlled. Key factors that have increased the importance of corporate governance include changing ownership structures, a focus on social responsibility, corporate scandals, and globalization. India has developed strong corporate laws and governance standards since independence.
'CSR' and 'Corporate Governance' are 2 sides of a coin, 'Sustainability' being the EDGE of that coin! Notes from my session on Corporate Governance for PG Diploma in CSR course.
Corporate governance is defined as the system by which companies are directed and controlled, specifying the distribution of rights and responsibilities among stakeholders like boards, managers, and shareholders. It involves ensuring both an individual and company's welfare and that of the surrounding society. Social responsibility is the obligation of decision-makers to protect and improve societal welfare along with their own interests through intelligent and objective concern. It represents an extension of business ethics within corporate governance.
The document discusses the history and evolution of corporate governance in India. It provides details on key committees and recommendations that helped shape India's corporate governance framework over time. Some of the main elements of corporate governance that it outlines include the roles and responsibilities of boards of directors, shareholders and other stakeholders. It also discusses the impact of corporate governance on company performance and principles like transparency, accountability and protection of shareholder rights.
Chapter 1 corporate governance an overviewashujaan
This chapter provides an overview of corporate governance by defining it, discussing its evolution, and explaining its relevance. It outlines the key topics to be covered, including definitions of corporate governance from academic and country-specific perspectives. A historical perspective is given on how corporate governance developed from a narrow shareholder focus to a broader stakeholder model. Issues in corporate governance are also highlighted such as board composition and directors' remuneration. The chapter emphasizes that good corporate governance protects stakeholder interests, ensures compliance, and enhances long-term shareholder value and corporate performance.
This document discusses corporate governance best practices and their implications for commercial underwriters. It outlines recommendations for board composition and responsibilities, executive compensation practices, and anti-takeover measures. Key recommendations include separating the CEO and chairman roles, having independent board members and committees, linking executive pay to performance, and establishing policies around director independence and stock ownership.
Effects of corporate governance on financial performance of listed insurance ...Alexander Decker
This document discusses a study that investigated the effects of corporate governance on the financial
performance of listed insurance companies in Kenya. Specifically, it examined the impact of board size, board
composition, CEO duality, and leverage. The study found that board size was negatively related to financial
performance, while board composition, separation of the CEO and chair roles, and leverage were positively
related to financial performance. Good corporate governance is important for firm success and the economic
well-being of Kenya, but governance practices need further improvement in the country's insurance industry.
Corporate governance involves establishing order between a firm's owners and top-level managers to effectively direct strategic decisions and ensure accountability. It addresses the separation of ownership and control through internal mechanisms like boards of directors and executive compensation, and external mechanisms like the market for corporate control. However, divergent interests between owners and managers can lead to agency problems if not properly monitored and controlled.
Corporate governance involves directing and controlling companies through their boards of directors, who set strategies and supervise management. Good governance prioritizes transparent processes for decision-making that consider all stakeholders' interests. It ensures careful management, stable stock prices, director training, stakeholder involvement, improved shareholder communication, and protecting goodwill and reputation. Bad governance allows problems like fraud and hurts companies' reliability.
Corporate governance refers to the structures and processes used to direct and manage companies in the interests of all stakeholders. The basic principles of corporate governance include accountability, transparency, fairness, integrity, responsibility and commitment. Good corporate governance enhances company performance, access to capital, and long-term prosperity while providing barriers against corruption. Both public and private sectors benefit from good corporate governance through better management, resource allocation, and reduced financial risk.
Introduction to Corporate Governance Sep 17 2011Demir Yener
Introductory remarks on good corporate governance practices and implications on board performance and rights and responsibilities for Mongolian directors.
Global perspectives corporate_governance_csr_ch1Piyush Gupta
This document provides an introduction and overview of corporate governance and corporate social responsibility in context. It discusses different forms of governance that exist, including hierarchical, market-based, network-based, and consensual forms. It also outlines eight key principles of good governance: transparency, rule of law, participation, responsiveness, equity, efficiency/effectiveness, sustainability, and accountability. Finally, it describes three historical models of governance: the Anglo-Saxon model which is rules-based and hierarchical; the Latin model which is less codified and based on family and community; and the Ottoman model.
corporate goverance Gobal models.
There are 4 Models.
ANGLO-US Model.
Japanese German model.
China Model.
Indian Model.
Salient ideas and thoughts on principals of governance as revealed by our ancient scriptures.
Basic values of Indian principals of governance.
India is not a story from Rags to Riches.
Strengths of India
The magic mantra of ‘Demographic Dividend’
The Integral Approach .
Domestic Consumption drives growth.
The document discusses corporate governance and research methodology. It defines corporate governance and discusses its key stakeholders. The objectives of the research are outlined, which are to analyze corporate governance practices of BSE-30 companies over 5 years and evaluate the importance of corporate governance from investors' and company secretaries' viewpoints. The research methodology discusses the population, sample size, sampling method, and data sources for the research.
The document discusses corporate governance requirements for companies in India. It defines corporate governance as a set of standards that aim to improve a company's image, efficiency, effectiveness and social responsibility. Some key requirements discussed include:
- Board of directors must have at least one woman director and at least 50% non-executive directors.
- There must be at least four board meetings per year with a maximum gap of 120 days between meetings.
- Companies must have audit, nomination & remuneration, and stakeholders relationship committees.
- Detailed criteria are provided for independent directors regarding their appointment, tenure, and separation from the company.
- Related party transactions require audit committee and shareholder approval depending on
Corporate governance involves the systems and processes by which companies are directed and controlled, and addresses the relationships among stakeholders such as management, shareholders, customers, and communities; the roles of the board of directors and senior executives include setting strategy, overseeing risk management and financial reporting, and appointing the CEO, with the chairman leading the board and the managing director running day-to-day operations.
It consists meaning of corporate governance, clause 49 of listing agreement, initiatives for governing practices in India and drivers for the growth of corporate governance in India.
This is a part of syllabus of the Business ethics of MBA.
Thapas Sir Presentation ppt =priyanka rai -ICBM-SBE HYDERABADam12sd34
Corporate governance involves balancing economic and social goals as well as individual and group interests. The primary purpose is to create wealth legally and ethically by satisfying key stakeholders. Good governance requires mechanisms for internal control by boards and managers as well as external control through regulations, markets and stakeholders. In India, corporate governance initiatives began in the 1990s led by industry groups and later the securities regulator SEBI. Key reforms strengthened board independence and financial disclosure standards. While standards have improved, further training of directors and ensuring the spirit not just letter of regulations remains an ongoing challenge.
This document discusses the role of corporate governance in enhancing value for corporations. It defines corporate governance and outlines its key principles such as transparency, accountability, and ethical behavior. The document then discusses the historical origins of corporate governance principles in India and how governance frameworks have developed over time in response to corporate scandals through acts, codes and committee recommendations in countries like the US, UK and India. Overall, the document provides an overview of the evolution and fundamental goals of corporate governance systems.
This document discusses corporate governance, which focuses on how corporations are operated and managed. It covers decision making processes, communication between management, shareholders, and workers, and the sharing of rights and responsibilities. Corporate governance provides checks and balances to prevent abuse and ensures decisions are made with all stakeholders' best interests in mind. Key aspects of corporate governance include the board of directors, management, shareholders, and other stakeholders. The principles of corporate governance are fairness, transparency, fiduciary duty, reliability, and respecting stakeholder rights.
This powerpoint presentation is prepared by reviewing the article entitled "A Case for Global Corporate Governance Rules : An Auditor’s Perspective" by Robert S Roussey. This is presented in a seminar on corporate governance at School of Management, Tribhuvan University.
Corporate governance refers to the processes, customs, policies, laws, and institutions affecting how a company is directed, administered or controlled. It involves relationships between stakeholders and the goals for which the corporation is governed. According to the Cadbury Committee, corporate governance is defined as the system by which companies are directed and controlled. Key factors that have increased the importance of corporate governance include changing ownership structures, a focus on social responsibility, corporate scandals, and globalization. India has developed strong corporate laws and governance standards since independence.
'CSR' and 'Corporate Governance' are 2 sides of a coin, 'Sustainability' being the EDGE of that coin! Notes from my session on Corporate Governance for PG Diploma in CSR course.
Corporate governance is defined as the system by which companies are directed and controlled, specifying the distribution of rights and responsibilities among stakeholders like boards, managers, and shareholders. It involves ensuring both an individual and company's welfare and that of the surrounding society. Social responsibility is the obligation of decision-makers to protect and improve societal welfare along with their own interests through intelligent and objective concern. It represents an extension of business ethics within corporate governance.
The document discusses the history and evolution of corporate governance in India. It provides details on key committees and recommendations that helped shape India's corporate governance framework over time. Some of the main elements of corporate governance that it outlines include the roles and responsibilities of boards of directors, shareholders and other stakeholders. It also discusses the impact of corporate governance on company performance and principles like transparency, accountability and protection of shareholder rights.
Chapter 1 corporate governance an overviewashujaan
This chapter provides an overview of corporate governance by defining it, discussing its evolution, and explaining its relevance. It outlines the key topics to be covered, including definitions of corporate governance from academic and country-specific perspectives. A historical perspective is given on how corporate governance developed from a narrow shareholder focus to a broader stakeholder model. Issues in corporate governance are also highlighted such as board composition and directors' remuneration. The chapter emphasizes that good corporate governance protects stakeholder interests, ensures compliance, and enhances long-term shareholder value and corporate performance.
This document discusses corporate governance best practices and their implications for commercial underwriters. It outlines recommendations for board composition and responsibilities, executive compensation practices, and anti-takeover measures. Key recommendations include separating the CEO and chairman roles, having independent board members and committees, linking executive pay to performance, and establishing policies around director independence and stock ownership.
Effects of corporate governance on financial performance of listed insurance ...Alexander Decker
This document discusses a study that investigated the effects of corporate governance on the financial
performance of listed insurance companies in Kenya. Specifically, it examined the impact of board size, board
composition, CEO duality, and leverage. The study found that board size was negatively related to financial
performance, while board composition, separation of the CEO and chair roles, and leverage were positively
related to financial performance. Good corporate governance is important for firm success and the economic
well-being of Kenya, but governance practices need further improvement in the country's insurance industry.
Corporate governance involves establishing order between a firm's owners and top-level managers to effectively direct strategic decisions and ensure accountability. It addresses the separation of ownership and control through internal mechanisms like boards of directors and executive compensation, and external mechanisms like the market for corporate control. However, divergent interests between owners and managers can lead to agency problems if not properly monitored and controlled.
Corporate governance involves directing and controlling companies through their boards of directors, who set strategies and supervise management. Good governance prioritizes transparent processes for decision-making that consider all stakeholders' interests. It ensures careful management, stable stock prices, director training, stakeholder involvement, improved shareholder communication, and protecting goodwill and reputation. Bad governance allows problems like fraud and hurts companies' reliability.
Corporate governance refers to the structures and processes used to direct and manage companies in the interests of all stakeholders. The basic principles of corporate governance include accountability, transparency, fairness, integrity, responsibility and commitment. Good corporate governance enhances company performance, access to capital, and long-term prosperity while providing barriers against corruption. Both public and private sectors benefit from good corporate governance through better management, resource allocation, and reduced financial risk.
Introduction to Corporate Governance Sep 17 2011Demir Yener
Introductory remarks on good corporate governance practices and implications on board performance and rights and responsibilities for Mongolian directors.
Global perspectives corporate_governance_csr_ch1Piyush Gupta
This document provides an introduction and overview of corporate governance and corporate social responsibility in context. It discusses different forms of governance that exist, including hierarchical, market-based, network-based, and consensual forms. It also outlines eight key principles of good governance: transparency, rule of law, participation, responsiveness, equity, efficiency/effectiveness, sustainability, and accountability. Finally, it describes three historical models of governance: the Anglo-Saxon model which is rules-based and hierarchical; the Latin model which is less codified and based on family and community; and the Ottoman model.
corporate goverance Gobal models.
There are 4 Models.
ANGLO-US Model.
Japanese German model.
China Model.
Indian Model.
Salient ideas and thoughts on principals of governance as revealed by our ancient scriptures.
Basic values of Indian principals of governance.
India is not a story from Rags to Riches.
Strengths of India
The magic mantra of ‘Demographic Dividend’
The Integral Approach .
Domestic Consumption drives growth.
This document provides an overview of corporate governance. It defines corporate governance as applying best management practices and complying with laws and ethical standards to effectively manage a company and create wealth for stakeholders. Good corporate governance provides benefits like better access to financing, lower costs of capital, improved performance, and reduced risk. The four pillars of corporate governance are accountability, fairness, transparency, and independence. In India, organizations like CII and SEBI have worked to establish corporate governance standards and regulations like Clause 49 to strengthen practices at publicly listed companies.
Ownership concentration, corporate governance and the firm's financial perfor...Santosh Pande
This document outlines the research proposal for a thesis examining the relationship between ownership concentration, corporate governance, and firm financial performance in Indian firms. The study will develop a holistic corporate governance framework and test hypotheses about the impact of ownership concentration and various corporate governance parameters like board structure, auditor independence, and related party transactions on firm performance measures like Tobin's Q and return on assets. Control variables like firm size, age, leverage, and industry factors will also be included. The research aims to address gaps in prior empirical studies on corporate governance in India.
Corporate Governance Reforms Post Global Financial CrisisSanjay Uppal
This document discusses corporate governance in financial services following the global financial crisis. It begins by outlining the importance of corporate governance and defines it as the procedures and processes by which an organization is directed and controlled. It then discusses key principles of corporate governance for banks according to the Basel Committee on Banking Supervision, including setting objectives, risk management, and protecting depositors. The document notes that sound corporate governance in banks can promote economic development by increasing access to finance and improving operational performance. However, poorly governed banks can damage the economy. While boards and senior management have primary responsibility for governance, other stakeholders like regulators, shareholders, and governments also play important roles. The document reviews key events in banking history over the 20th century and
Relationship between Ownership Structure and Company Performance: Evidence fr...Snezana Kiradziska
This document summarizes a research project that examined the relationship between ownership structure and company performance in Macedonian companies listed on the Macedonian Stock Exchange from 2006 to 2009. The hypothesis was that more concentrated ownership structures would lead to better monitoring of managers and thus better performance. While previous studies on this topic have shown mixed results, the empirical analysis of Macedonian data did not support the hypothesis. The document provides background on relevant theories, definitions of key terms, methodology used, and results of testing the hypothesis.
The significance of corporate governance in a globalizedScott Odigie
This document outlines Scott Odigie's presentation on the significance of corporate governance in a globalized economy. It defines corporate governance and discusses it as an integral part of success. The presentation covers principles of corporate governance like rights of shareholders, roles of the board, and transparency. It argues that corporate governance is crucial for national development, foreign investment, and company performance globally. In conclusion, corporate governance is presented as an indispensable part of human existence and business.
Corporate governance failure a case study on anglo irish bankAmrita Debnath
Anglo Irish Bank suffered a major corporate governance failure due to the actions of its former CEO Sean FitzPatrick. From 2000-2008, FitzPatrick made massive undisclosed personal loans to himself and other directors totaling over €150 million, misleading investors and regulators. When the global financial crisis hit and property prices fell, Anglo Irish faced insolvency due to the poor quality of its loan assets. The Irish government was forced to nationalize Anglo Irish at great cost to taxpayers to rescue it from collapse. FitzPatrick and other directors were later charged with fraud for their role in Anglo Irish's downfall through unethical practices and intentional deception.
This study analyzes the corporate governance practices of Aditya Birla Chemicals (India) Limited over a 5-year period from 2005-2010. The objectives are to analyze compliance with SEBI's Clause 49 listing agreement requirements and offer suggestions. The study finds that the company complies with Clause 49 requirements regarding board composition, audit and shareholder committees. It recommends improvements like developing a formal code of conduct, educating investors, strengthening internal auditing, and enhancing stakeholder value. In conclusion, corporate governance should be a way of life that considers all stakeholder interests.
A Case Study - WestJet Airlines: Information Technology Governance and Corpor...Dimas Ramadhani
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help boost feelings of calmness, happiness and focus.
Corporate Governance with a Case Study of Royal Bank of Canadasimplyidontcare
This document discusses corporate governance and provides an example case study of the Royal Bank of Canada. It defines corporate governance as the mechanisms and processes by which corporations are controlled and directed. It describes the role of boards of directors in overseeing management and shareholders' interests. It also discusses financial reporting responsibilities and the role of audit committees in providing oversight. The case study then provides details on the Royal Bank of Canada's governance structure, including its independent board composition and oversight committees.
Corporate governance issues on satyam group 8nitin688
1) The document discusses corporate governance issues at Satyam Computers Consultancy Ltd arising from the 2008 Satyam scam, where the company chairman inflated revenue and profit figures for several years.
2) Satyam failed to fulfill its obligations to various stakeholders like shareholders, employees, and the government. It did not provide transparent information to shareholders and misreported financial information.
3) The scam had major negative impacts, with the company found to have inflated cash balances, understated liabilities, and overstated assets by billions of dollars. It ultimately resulted in investigations and reforms to improve corporate governance practices in India.
This document discusses corporate governance and anti-corruption in global business. It covers topics like corruption practices and properties, the taxonomy of corruption in international business, and how corruption relates to organizational environment and behavior. Corruption undermines corporate governance so anti-corruption efforts are crucial, especially for multinational corporations operating across different country contexts with varying laws and standards. The document also presents frameworks for classifying types of corruption based on intensity and hierarchical scale. Organizational corruption can stem from both internal corporate factors and external environmental influences.
This document summarizes key points from Chapter 6 of Management 104 on corporate governance and anti-corruption in global business. It covers topics such as defining corruption and its various forms, the importance of anti-corruption efforts for corporate governance, how corruption relates to organizational environment and behavior, and the consequences of corruption for organizations. The chapter also discusses how organizational architecture including corporate culture, structure, and compliance systems can help address corruption. The document is presented in an outline format with various sections and subsections.
This document provides an overview of Chapter 6 from Management 104 on corporate governance and anti-corruption in global business. It discusses:
I. The importance of corporate governance and anti-corruption efforts given recent scandals involving major companies. Effective anti-corruption programs are crucial to upholding integrity.
II. The chapter coverage includes topics like corruption practices and properties, the taxonomy of corruption in international business, and the relationship between corruption and organizational environment, behavior, architecture, and consequences.
III. Anti-corruption is critical for corporate accountability and is emphasized in laws like the Foreign Corrupt Practices Act. Organizations must understand their role and responsibility in combating corruption on a global scale.
The article discusses how good corporate governance is important for banks' financial performance and long-term sustainability. It argues that banks with strong corporate governance practices tend to have higher profitability and lower costs of capital. Ensuring proper oversight of management and clear accountability helps minimize risks and maintains stakeholder trust, benefiting the bank's financial position.
Whistle blowing and financial reporting key issues andSowmya S Gowri S
Whistleblowing involves employees reporting wrongdoing, such as financial mismanagement or corruption. It helps ensure transparency and integrity in financial reporting. Effective whistleblowing policies within organizations, that protect anonymous reporting and whistleblowers, can help establish strong internal controls and corporate governance. Without such policies, employees may make external whistleblowing disclosures that damage the organization.
Dr haluk f gursel fraud examination rises to distinction article grcj 2010 1_v3_Haluk Ferden Gursel
Global firms are recognizing that the
anti-fraud profession is an important
component of risk measurement and
avoidance. The analysis below
illustrates how recent risk-based
management control systems are
hastening the development of
specialized anti-fraud agents. It is
evident that the increased public
appetite for transparency and enhanced
accountability has also spurred rapid
developments in the anti-fraud
discipline.
The document contains review questions and answers about corporate governance, business ethics, risk management, and internal control. It addresses topics such as the definition of governance, the purpose and objectives of corporate governance, the roles and responsibilities of boards of directors, shareholders, and management. It also discusses principles of good governance and transparency.
1) The document discusses fraud deterrence, which aims to proactively identify and remove factors that enable fraud through improving organizational procedures and culture.
2) It defines fraud deterrence as preventing fraud by analyzing conditions and procedures that could enable fraud in the future and reducing related risks.
3) The document outlines the five components of the COSO internal control model that provide a foundation for fraud deterrence by limiting fraud opportunity factors - control environment, risk assessment, control activities, information and communication, and monitoring.
Identify in 150 - 200 words your reactions to the concepts of global.pdffathimafancyjeweller
Identify in 150 - 200 words your reactions to the concepts of globalization and Global Business
Ethics Issues.
Solution
Overview
The current financial crisis has raised questions about the legitimacy of capitalism. Ethical
failures certainly played a role. While it remains to be seen whether and how many people
blatantly broke the law, there are abundant signs of various forms of potentially unethical
behavior. These include greed, unreasonable amounts of leverage, subtle forms of corruption
(such as ratings agencies that appear to have had a conflict of interest), complex financial
instruments that no one really understood, and herd behavior where people just followed along
and failed to exercise independent judgment.
It is difficult or impossible to regulate against greed and against many of the other ethical
shortcomings that have been seen. What can be done is to force greater transparency and
accountability, a process which began with Sarbanes-Oxley and is expected to continue with new
regulations of the financial system.
Context
Drawing upon learnings from their work and experiences, the panelists and moderator exchanged
views with the audience on the ethics and legitimacy of business and capitalism in general, and
the financial crisis in particular.
Key Takeaways
The financial crisis may shift societal views on the legitimacy of business.
Each panelist offered a different perspective on the issue of ethics and legitimacy in business:
– The financial crisis has the potential to damage the legitimacy of capitalism (Di Tella). Richer
nations tend to be more right-wing in their views and have more capitalistic economic systems.
The United States is exceptionally right-leaning, even among developed nations.
These attributes are heavily influenced by beliefs regarding the reasons why people are
prosperous or poor. Americans tend to see prosperity as a product of effort more than luck; left-
leaning nations believe the opposite.
Affecting these beliefs: the number and severity of the shocks a society has weathered; and
perceptions regarding the legitimacy of business—i.e., the perceived degree of corruption.
America generally perceives that corrupt businesspeople are the exception, and punishes deviants
severely. However, this financial crisis holds the potential to shift America leftward since it: 1) is
a major shock that 2) suggests systemic corruption. Both call into some question the legitimacy
of U.S. capitalism.
– It is ethically legitimate for businesses to place the customer\'s interests above all else, because
only through profit comes the freedom to contribute to society (Vasella). Business leaders must
use their personal moral compasses to make ethical decisions. As for the business\'s compass, it
should be oriented toward satisfying customers above all stakeholders. That is the orientation
that allows for the greatest competitive success and profitability. In Mr. Vasella\'s view, only by
making a profit does a company earn the rig.
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Corruption and anti-bribery are pivotal in today’s world, influencing the future of societies and organizations. By implementing the steps in this guide, individuals and organizations can contribute to fighting corruption and promoting integrity. We hope this user-friendly guide by Someshwar Srivastava has illuminated these crucial concepts and inspired you to act against corruption within your sphere of influence.
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Vigilance refers to keeping careful watch to avoid potential dangers or issues. For organizations, it means monitoring employee activities to promote integrity and honesty. Vigilance is important to curb unethical behaviors by individuals that can waste resources and damage an organization's reputation. It helps discipline wrongdoers, protect honest employees, increase transparency, and foster a culture of honesty. Vigilance functions are carried out through preventative measures like simplifying rules, improving accountability, and educating employees, as well as reactive investigations and disciplinary actions in response to detected corruption. It is a management tool that can improve organizational performance, efficiency, and effectiveness.
The document discusses fraud awareness for managers. It defines fraud and provides examples of regulatory definitions. It outlines factors that can contribute to fraud such as lack of controls and management oversight. The document emphasizes the importance of prevention through controls and establishes tone at the top. It lists behavioral and other red flags that could indicate fraud.
The document discusses how fraud and integrity risks are changing and increasing during the economic downturn. It summarizes that incentive/pressure, opportunity, and rationalization - the three conditions of the fraud triangle - are all heightened. Specific fraud risks that may emerge include issues in the supply chain, revenue leakage, bribery, anticompetitive practices, improper financial reporting, data theft, and weakened internal controls. The document recommends that organizations assess these risks, employ data analytics to detect misconduct, and implement a comprehensive antifraud framework based on the COSO model to proactively manage fraud risks.
This document discusses developing a culpability matrix for ethics investigations. It explains that misconduct comes in many forms with varying root causes, impacts, and levels of intent. A culpability matrix can help ensure consistent disciplinary actions that are appropriate to the type of misconduct. The key factors discussed for determining disciplinary actions are: the act of misconduct itself, the role of the subject, any motivations, behavioral aspects, and the organization's perspective. Consistent guidelines help ensure transparency and prevent arbitrary decision making, while still allowing flexibility. Organizations should structure disciplinary guidelines but also continue evolving them over time.
The document discusses the role of chartered accountants in enterprise risk management. It begins with defining risk and the types of risks faced by organizations. It then explains what enterprise risk management is, its importance and benefits. It outlines the statutory requirements for ERM in India per the Companies Act and SEBI regulations. Finally, it details the various ways chartered accountants can facilitate the ERM process, such as conducting process audits, developing ERM frameworks, and assisting with implementation.
The document discusses business ethics and corruption in developing countries. It argues that current approaches to regulating business often fail and can increase corruption by creating more rules without enforcement. It proposes that development agencies should find new ways to encourage business growth while preventing malfeasance, such as increasing support for NGOs and partnerships with ethical businesses. Agencies also need to find ways to assist citizens in corrupt regimes by bypassing their governments. The alternative is more unenforceable laws that waste aid and discourage investment without reducing corruption.
Similar to Chapr. 6 Corporate Governance in Global Business (20)
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This document discusses problems that small and large firms may face and how to address them. For small firms, key issues include lack of competitive advantage, reliance on assumptions instead of facts, poor or no planning, lack of professional advice, capital and cash flow issues, and managerial challenges. For large firms, stated objectives and policies, lack of direction, functional problems, people issues, lack of marketing focus, poor controls, and unrealistic visions can be problematic. The document provides questions and strategies to help firms address these issues to survive, grow, and make a profit.
The document discusses different forms of business ownership and organization - sole proprietorship, partnership, corporation, and cooperative. It outlines the key advantages and disadvantages of each form. Some advantages of sole proprietorship include low start-up costs and total decision-making authority for the owner, while disadvantages are unlimited liability and lack of continuity. Partnerships allow for more capital and skills but have potential for conflicts. Corporations benefit from limited liability but have higher formation costs. Cooperatives provide benefits to members but have equal profit distribution. The document also covers legal considerations and registration processes for different ownership types.
The document discusses various aspects of office management including office location, office building, office layout, and office environment. Some key points:
1) Location is an important factor for business success. Urban areas provide advantages like amenities and infrastructure but have higher costs, while suburban areas have lower costs but fewer amenities.
2) An office can be located in an owned building or leased building. Owned buildings provide more control but require large investments, while leased buildings have lower costs but less flexibility.
3) Effective office layout follows principles like workflow, proximity of related departments, and adequate space, lighting and facilities for employees.
4) A good office environment with proper lighting, ventilation and facilities improves employee productivity
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This document discusses leadership and social responsibility. It defines leadership and outlines characteristics of quality leaders. It also describes various leadership styles like telling, selling, participating, and delegating. The contingency approach and path-goal approach to leadership are explained. The document also defines social responsibility and discusses arguments for and against businesses' social involvement. It outlines theories of ethical business management and how businesses can institutionalize ethics.
Here are potential responses to the questions about the Heinz Corp ethics case study:
1. Internal parties affected include Julia (accused of theft), Joanne (witness), other employees (lose trust), and the company (financial loss). External parties affected include customers (deposits stolen). All could lose money and trust in the company.
2. Joanne could: a) Report suspicions to president privately. Risk: no proof, creates tension. b) Gather evidence first before reporting. Risk: more money stolen if waits. c) Report anonymously. Risk: no follow up questions possible
3. The most appropriate action is for Joanne to report her suspicions and observations to the president privately but immediately. This alerts management while allowing
The document discusses the key aspects of staffing or human resource management, which includes analyzing manpower requirements, recruitment, selection, placement, training and development, performance appraisal, and retention of employees. The goal of staffing is to ensure the right people are in the right jobs at the right time to help the organization achieve its goals.
1. The document discusses strategic human resource management and the various processes involved including human resource planning, staffing, development and evaluation, compensation, and knowledge management.
2. It specifically covers topics like job analysis, demand and supply of human resources, recruitment, selection, training, performance appraisal, pay structure, and benefits.
3. The document also provides examples and definitions related to personnel management, manpower planning, and the role of HRM in organizations.
The document discusses the concept of controlling as a management process that involves regulating organizational activities so actual performance meets standards and goals. It defines controlling and explains its significance and relation to other management functions like planning, organizing and directing. The document also outlines the roles of controls, levels of control, steps in the control process, managerial approaches to implementing controls, and characteristics of an effective control system.
Controlling is the process of regulating organizational activities to ensure actual performance meets expected standards and goals. There are different levels of control including strategic, tactical, and operational control. An effective control system is future oriented, multidimensional, cost effective, accurate, realistic, timely, monitorable, acceptable to organizational members, and flexible. The control process involves determining areas to control, establishing standards, measuring performance, comparing performance to standards, taking corrective action if needed, and adjusting standards.
A change in an employee's employment status requires a personnel action by the human resources department based on a request from the employee's department. Such requests should include the old and new employment information and effective date. Employees may progress through a job hierarchy from entry-level positions requiring less skill to jobs requiring more knowledge and skill. Organizations also have career paths representing lines of advancement within occupational fields. Employment status types include full-time, part-time, probationary, permanent, and others. Promotions consider performance records, potential ability, recommendations, and sometimes seniority. Demotions and separations like resignations and terminations also affect employment status.
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This document provides an outline and overview of management directing concepts including:
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2. The key elements of direction including communication, supervision, motivation, and leadership.
3. Maslow's hierarchy of needs and how it relates to motivation.
4. The different types of power and influence in organizations.
5. How directing relates to leadership.
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2. It provides examples of how work can be grouped by function, product, process, and geographical location in departmental structures.
3. Key aspects of organizational design discussed include centralization vs decentralization of authority and the roles of formal and informal organization systems.
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This document discusses various topics related to organizing, including defining an organization, different types of organizational structures (line, line and staff, functional, committees), and elements of organizing like departmentation, delegation, and centralization vs decentralization. It provides examples of different types of organizational charts and discusses factors to consider when drawing charts. Key elements of good organization like establishing responsibility and communication are also outlined.
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2. MANAGEMENT 104
CHAPER 6
Corporation Governance and
Anti – Corruption in Global Business
Presented By:
Mae Casumpang
Aizell Bernal
Magiel Amora
Mara Marielle Banez
Jerelyn Barrogo
Jecelyn Barrogo
Jasmin Khaye Aquino
3. Coverage of Chapter 5
I. 6.5 Corporate Governance and Anti- Corruption – mae
II. 6.2 Corruption Practices and Properties- Aizel
III. 6.3 Taxonomy of Corruption in International Business. –
Magiel
IV. 6.4 Corruption and Organizational Environment – Khaye
V. 6.4.1 Task Environment - khaye
VI. 6.4.2 Institutional Environment – khaye
VII. 6.5 Corruption and Organizational Behavior- jerz
VIII. 6.5.1 System Malfeasance – jerz
IX. 6.52 Procedural Malfeasance –jerz
X. 6.5.3 Categoral Malfeasance- jerz
XI. 6.5.4 Structural malfeasance- jerz
XII. 6.6 Corruption and Organizational Consequences- Mara
XIII. 6.6.1 Evolutionary hazard – mara
XIV. 6.6.2 Strategic impediment – mana
XV. 6.6.3 Competitive disadvantage – mara
XVI. 6.6.4 Organizational Defficiiency- mara
4. Coverage of Chapter 5
I. 6.5.4 Structural malfeasance- jerz
II. 6.6 Corruption and Organizational Consequences- Mara
III. 6.6.1 Evolutionary hazard – mara
IV. 6.6.2 Strategic impediment – mana
V. 6.6.3 Competitive disadvantage – mara
VI. 6.6.4 Organizational Defficiiency- mara
VII. 6.7 Corruption and Organizational Architecture – jes
VIII. 6.7.1 Corporate Culture
IX. 6.7.2 Organizational Structure
X. 6.7.3 Compliance System
XI. 6.7.3.1 Conduct Code
XII. 6.7.3.2 Compliance Program
5. 6.1 The Corporate Governance and Anti- Corruption
Corruption
• has drawn the enormous attention of executives, directors, legislators,
politicians, and scholars around the world.
• Recent obstacles of many well known companies.
Anti- corruption
• Crucial to corporate governance, because bribery and corruption
damage the Governance of corporation .
• Impede efforts to develop corporate integrity.
• any illicit behavior, conducted by executives, managers, and employees
can fundamentally deter the legitimate and long term interest of internal
and external stake holders.
6. 6.1 The Corporate Governance and Anti- Corruption
In the international business context, anti- corruption
becomes even more important
To global corporate governance because MNCs confront
significantly varying norms, laws, and standards pertaining to
business practices in general and corruption practices in
particular.
To cope increasingly stringent anti- corruption law and to
enhance the effectiveness and transparency of global corporate
governance, MNCs are voluntarily disclosing potential violations
of federal anti – corruption law.
7. 6.1 The Corporate Governance and Anti- Corruption
Surely it is true that the Anti – corruption necessities efforts
and commitments
from various institution, especially legislators, regulators and
government official.
Transparency – the key in private and public domain to fight
against bribery and
extortion.
Cooperation to strengthen public support to fight against
Anti-corruption measures.
Adoption of proper Corporate Governance practices is
complimentary element in Fostering a culture of ethics within
the multinational enterprise.
8. 6.1 The Corporate Governance and Anti- Corruption
Business organization has an inescapable liability from such
effort and commitments :
I. Organization is a basic unit of corruption practice.
II. Organization that are motivated to bribe for transaction-
specific gain are partly responsible why corruption is
difficult to eradicate.
III. Organization is a window through which to see Nation
corruption climate.
IV. Knowing organizational implication of corruption is
imperative.
9. 6.1 The Corporate Governance and Anti- Corruption
Anti- corruption is critical to corporate
accountability.
The foreign Corrupt practices Act ( FCPA) – clearly
states the importance of Anti- corruption in
fortifying MNCs global corporate governance and
accountability.
10. 6.2 Corruption Practices and Properties
Corruption define as an illegitimate exchange of
resources involving the use or abuse of public or
collective responsibility for private ends ( gains,
benefits, profits, or privileges).
Kinds of Corruption
Bribery
Fraud
Extortion
Favoritism
11. 6.2 Corruption Practices and Properties
Bribery – is the payment given or taken in a corrupt
relationship
Fraud – is an economic crime that involves some kind of
trickery, swindle, or deceit.
Extortion - involve corrupt transactions where money or
other resources are violently extracted by those who have
the power to do so.
Favoritism – is a mechanism of power that privatizes public
resources or highly biased distribution of state resources
no matter how the resources were accumulated in the
first place
12. 6.2 Corruption Practices and Properties
Nature of Corruption
1. Corruption is context- based.
2. Corruption is norm- deviated.
3. Corruption is power- related.
4. Corruption is virtually convert.
5. Corruption is international.
6. Corruption is ex post opportunistic.
7. Corruption is perceptual
13. 6.3 Taxonomy of Corruption in International Business
MNCs engaging in corrupt activities differ in the intensity scale and hierarchal
Scale of corruption, resulting in varying organizational identities, which
display
Different levels of seriousness regarding the corruption involved.
The Intensity Scale of corruption – levels of seriousness concern with the
multitude
(quantity) as well as the magnitude (gravity) of the corrupt activities.
Hierarchal scale – concerns the number of hierarchal levels ( e.g. ..
Group/team
level, function/department level, division/subsidiary level, and
corporate/head office level).
These two dimension jointly mirror the seriousness of organizational
corruption.
14. 6.3 Taxonomy of Corruption in International Business
Sick Bulldog Mad Fox
Structural Malfeasance System Malfeasance
*Leveling *Positioning
**Participation **Control
Errant Rabbit Wild Puppy
*Bridging *Interpretation
** Acquiescence ** Selection
1. Mad Fox- High intensity and more hierarchies
2. Errant Rabbit – Low intensities and few
Hierarchies
3. Sick Bulldog- low intensity and more hierarchies
4. wild puppy- high intensity and few hierarchies
15. 6.3 Taxonomy of Corruption in International Business
Dimension
1. Mad Fox- is a metaphor for MNCs where a large number
of managers and employees at many hierarchical levels or
various subunits perform corrupt practices resulting in
very serious illegality.
2. Errant Rabbit – metaphor for an MNC in which intensity
and hierarchical scales of corruption are both very low,
implying fewer instances of misconduct, narrower
hierarchical involvement, and weaker plague from
corruption metaphors.
16. 6.3 Taxonomy of Corruption in International Business
3. Sick Bulldog – Metaphor for MNCs whose Corrupt
activities are not intensive but are nonetheless the
practice of executive, managers, or employees at
many different levels.
4. Wild puppy – is a metaphor for an MNC in which
most corruption is narrowly concentrated at one or a
few levels of the hierarchy. This characterized by
large scale corrupt practices that are primarily
performed by the employees for one or narrowed
level of MNC.
17. 6.4 Corruption and Organizational Environment
Organizational corruption is attributable to both corporate and environmental
Factors in individual countries wherein an MNC conducts businesses. The impact
of country dynamics – whether economic, political, legal, or cultural- on national –
Level corruption has been rigorously studied.
Task environment pertain to the external resources, information or condition
that may immediately affect goal setting and goal attainment.
Three Traits of Task Environment:
1. Oligopolistic intensity
2. regulatory control
3. institutional complexity
18. 6.4.1 Task Environment
Oligopolistic Intensity describes the extent to which a small group of firms
in the Focal industry have dominant control and market power in the
industry. If a corrupt MNC subsidiary is a member of this group, it will be
motivated to continually bribe officials in power or collude with other
members of this group.
Regulatory control is concerned with the extent to which government
authorities Regulate and intervene in various industrial policies such as
market access, capital Investment, technological standard, distribution
channels, and environment protection which significantly impact business
operation in a focal industry.
Structural uncertainty describes the extent to which an industries
structural attributes such as demand and supply are violate and un
predictable.
19. 6.4.2 Institutional Environments
Institutional environments serve conditioning factors that either
undercut
Or entice organizational corruption. This study proposes that
institutional
Transparency, institutional fairness, and institutional complexity
are important
components of these environments.
Institutional requirements affect organizational arrangements
through both
Cognitive and normative mechanism.
20. 6.4.2 Institutional Environments
Institutional transparency describes the extent to which
regulatory systems ( political, bureaucratic, industrial, and
professional) are open, clear, and easy to understand in a
particular country in which MNC unit invest and operates.
21. 6.4.2 Institutional Environments
Institutional fairness describe the extent to which
various regulatory treatment are impartial, just and non
discriminatory to every business including foreign
business within the institutional reach.
22. 6.4.2 Institutional Environments
Institutional complexity describes the extent to which
the institutional environment that an MNC or its units
must relate to complicated and difficult to verify,
analyze, comply, and cope with.
Institutional transparency describe the extent to which
regulatory system are open, clear, and easy to
understand in a particular country in which an MNC unit
invest and operate.
23. 6.5 Corruption and Organizational Behavior
This emphasizes an MNCs Malfeasant behavior in its
corrupt practices , attempts to use typology to
elucidate which deviant behaviors will be used by
organization with differing metaphors to align with
the above task and institutional environments
Mad Fox Metaphor is accompanied with system
malfeasance, a n errant Rabbit with Procedural
Malfeasance, a wild puppy with categorical
malfeasance, a sick bulldog with structural
malfeasance.
24. 6.5.1 System Malfeasance
It exist when entire organizational system is contaminated
with corrupt acts
And corporate illegalities.
The mad fox metaphor applies well here because it involves
system wise fraud characterized by a great magnitude of
corrupt activities carried out by many hierarchies.
Corresponding to system malfeasance, a mad fox metaphor
emphasized positioning to align with uncertainty, regulatory
control, and oligopolistic intensity and focus to align on
control with institutional opaqueness, injustice, and
complexity.
25. 6.5.2 procedural Malfeasance
Procedural malfeasance exist in the errant rabbit
metaphor whose formalized procedures on business
ethics are not strictly by some employees at one or
few level or in one few subunits, resulting in a low scale
and a narrow scope of illicit acts.
Bridging to figure with task environment and use
acquiescence to figure with institutional environments.
26. 6.5.3 Categorical Malfeasance
Categorical Malfeasance exist in a wild puppy metaphor in
which many corrupt practices are concentrated in one or few
categorical levels, categorical units, or categorical location .
Categorical malfeasance is further revealed in the way a
wild puppy metaphor deals with its and institutional
environments.
Interpretation to deal with it task environments
and use selection to deal with Institutional environments.
27. 6.5.4 Structural Malfeasance
Structural malfeasance exist in sick bulldog metaphor
where corruptions acts are structural in nature and most
levels of the hierarchy, if not all, are involved, despite the
fact that the latter are small scale in terms of quantity
and gravity.
A sick bulldog may focus on leveling to align with task
environment and on pacification to align with
institutional environments.
Leveling is a tactic that seeks to smooth the impact of the
task environment fluctuations on business operations.
28. 6.6 Corruption and Organizational Consequences
Because corruption must be hidden from public, transaction
cost arising from corruption can be significantly higher than
those incurred for legal exchanges.
A short –term economic perspective , one may argue that
corruption can help reduce cost of a specific transaction from
increased institutional privileges and reduce regulatory
barriers.
One can always find exceptional or historical cases to
counter- argue the above the above premise. That is some
firms may achieve some short run as well as long run net
financial gains.
29. 6.6.1 Evolutionary Hazard
As an evolutionary hazard in the long term, corruption obstruct firm growth
And business development through four interrelated channels namely:
Risk
Effect
Punishment effect
image effect
Cost effect
• The degree of risk is a function of the bureaucratic corruptors willingness,
Power, position, experience and network.
• Second, when a criminal fraud of corruption for an organizational purpose
Is found, both the individual and the MNC will be punished
legally, institutionally
And disciplinary.
30. 6.6 Corruption and Organizational Consequences
Third, the image effect mainly lies in the stereotypical loss that
either increases Cost or reduces the income
stream for the company.
Lastly, all transaction entailing some element of
corruption inevitably involve financial cost.
31. 6.6.2 Strategic Impediment
Corruption s a strategic impediment is mainly manifested
in resource
Misallocation, capability-building deterrence, and lack of
confidence and predictability.
In a competitive environment, firm growth depends on
its dynamic capabilities such as organizational learning,
knowledge upgrading, continuous innovation, and I
innovative corporate control.
Lack of predictability and confidence always accompanies
corrupt deals, which in turn impede business
development.
32. 6.6.3 Competitive Disadvantage
Corruption is a competitive disadvantage is reflected by
dishonesty and untrustworthiness which can hurt a firms
competitive position in the market.
The elicit nature of corruption mirrors organizational
untrustworthiness. Adherence to the law is a prerequisite
element for corporate reputation and trustworthiness.
33. 6.6.4 Organizational Deficiency
Corruption is often the product of mismanagement. It violates
business ethics and length business principles. Since top
managers are more or less involved with Corrupt activities,
corruption implies problematic organizational leadership and
ill business morality.
March and Simon (1958) –states that most members within
MNC are motivated indirectly by organizational objectives and
directly by the incentive structure.
34. 6.6.4 Organizational Deficiency
Four Fold organizational consequences of Corruption:
1. Evolutionary hazards, including risk effect, image effect,
punishment effect, and cost effect;
2. Strategic impediments, including resource misallocation,
capability- building deterrence, and lack of predictability and
confidence.
3. competitive disadvantage, including dishonesty,
untrustworthiness, and inefficiency is repeated ties;
4. Organizational deficiency, including problematic leadership, ill
business morality, and mismanagement.
35. 6.7 Corruption and Organizational
Architecture
Corruption is durable and adaptable virus.
Combating corruption requires a set of
measures at various levels including addressing
poverty and inequity enacting and enforcing
anti-corruption law, and reforming dysfunctional
Government .
36. 6.7.1 Corporate culture
Corporate Culture is defined as statement, vision,
custom, slogans, values, Role models, and social
rituals that are unique to and used by a focal MNC
to resist corrupt practices.
37. 6.7.2 Organizational Structure
Misconduct can be detected and corrected through organizational
structure since this structure establishes the content of the jobs,
specifies monitoring Process, and regulates ways to fulfill and
responsibilities.
Transparency throughout the entire organizational structure
is a necessary Condition for reducing the potential for illicit
dealings.
38. 6.7.3 Compliance System
The compliance system that suppresses corruption
consist of conduct codes and Ethics program,
together constituting an effective organizational
control that minimizes corporate illegalities.
39. 6.7.3.1 Conduct Code
This system begins with written commitment in areas of
business ethics that are relevant to the firms activities –
that is code of corporate conduct that provides a set of
legal and ethical guidelines for employees to follow.
40. 6.7.3.2 Compliance Program
Compliance Program – training, due diligence, and formalized
procedures Ostensibly bring the behavior of MNC members into
conformity with a shared Ethical standard.
41. 6.7.3.2 Compliance Program
The MNC may adopt prompt – impacting approaches and take
specialized
Stopgap measures to quickly correct wrong doing . These
measures include:
1. Special training and educational seminars on resisting
corruption for all employees in the area.
2. More specific legal and ethical training for senior managers
in high risk area
Or functions such as sales, promotion, procurement, public
relation, and international business.
3. Change or rotation of senior manager in the area if these
manager were involved in major illegalities.
42. 6.7.3.2 Compliance Program
4. Enhancement of internal auditing, recording, and control
over various activities conducted by the focal unit that are
especially prone to corruption.
5. Stringent disciplinary punishment for failure by anyone in
the area to meet ethical expectations.
6. Requiring chief managers or directors in the area to bear or
share responsibility for anti- corruption activities and tying
their performance appraisal