August 30, 2017 at 6:22 am
One of the major initial problems about the new topic is selecting a suitable company. I think you need to find a company that has at least one major issue and argue that well by looking at the problem from several angles. Normally you can then find a couple of minor issues that can be used to make a further case of weak corporate governance.
For example there are many instances in the UK about excessive executive pay and shareholder revolt -see businesses pages of major media as every week (and in fact almost every other day) a new case is reported. To develop the argument consider the following article by the High Pay Centre http://highpaycentre.org/pubs/are-remuneration-consultants-independent
which considers whether remuneration consultants are truly independent. The executive pay (the total compensation package) in your chosen organisation could be compared with increase in shareholder value / profits, average worker pay, dividends as a measure of what the CEO is objectively contributing (or not as the case may be)
The purpose is to build up a well researched argument with some critical thought involved and bringing in objective evidence like this shows you have considered the topic in a ’rounded’ as opposed to superficial way.
The study could be combined with an investigation/research into other areas where there may be potentially weak governance e.g. one of the on-going issues is number of women on boards (considered to add strength to a board as females dilute the ‘alpha male’ mentality and take a more balanced attitude to risk). Or there might be issues of zero hours contracts and dubious other practices.
Adopting this type of approach (taking the major issues and subjecting them to balanced scrutiny) if adequately researched, well presented and referenced should lead not only to a pass but probably a B grade or above.
In the UK most of the major banks continue to have ‘issues’ of one sort or another -HBOS (now under Lloyds) and RBS have been accused of pushing small viable businesses into liquidation via exploitative practices and some employees face or have faced charges of corruption. Currently there are fears of another financial crash because of loose lending practices /lack of responsible lending and unprecedented levels of consumer debt and security concerns regarding customer data and bank fraud.
Overseas Swiss based ANN has had a couple of major issues -see http://www.telegraph.co.uk/business/2017/02/10/engineering-group-abb-investigated-serious-fraud-office/
Meanwhile Samsung too has been rocked by scandal
Just a few possibilities here then for a good and interesting RAP on new Topic 17September 9, 2017 at 9:57 am
Is HSBC okay for this topic ? As there are several scandals involving the bank last few years, is it okay to just focus on one issue or several ? ThanksSeptember 9, 2017 at 6:06 pm
If you choose to go focus on one issue you should still touch upon some of the other ones. You can be a bit selective but whoever marks it would expect you to demonstrate your knowledge and research skills so don’t gloss over anything completely if it is significant.September 9, 2017 at 6:56 pm
Hi trephena, can you tell me what business/financial models would you recommend for the new topic 17? apart from mendelow’s?September 10, 2017 at 9:42 am
The new topic is less formulaic than the old title so it is harder to lay down specific rules on what you must do. Although most students are familiar with the UK CG Code they are less familiar with many of the other codes and regulations (e.g. the Stewardship Code).
When you introduce the topic I have suggested outlining briefly the development of CG as a sort of literary review, mentioning key reports and codes (this is like with T6 where motivation theories are discussed). During your analysis of the scandal(s) you should refer back where relevant to legislation, codes and regulations that are implicated and been contravened.
In the final part you should consider how the various stakeholder groups have been affected and so any stakeholder model (including Mendelow’s) is appropriate here. Take a look at http://www.applied-corporate-governance.com/best-corporate-governance-practice.html
What I have found interesting is that competitors can impact on governance either negatively e.g. most of us refer to poor governance in ‘the banks’ (where the bad CG practices of a few have tarnished the reputation of the many) or positively e.g. some companies want to distinguish themselves from the questionable practices of competitor companies and see good governance as one way of promoting themselves and their products and services (most consumers want to support ethical and well run companies)September 12, 2017 at 4:45 pm
Hi Trephena, pls is swot analysis a suitable business model for topic 17?If yes,how can I apply it?
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