OLD (Pre-Period 35) Topic 17 Corporate Governance - RESUBMISSIONS ONLY

Yes those look fine although with Q7 remember the Code is really designed to protect shareholders investors so other stakeholders are not directly affected by it (and Section E is focused on shareholders). However it would be appropriate to mention that accounting standards and legislation impinge on other stakeholders citing the Bhs pension issue (incidentally not the first time the employees' pension fund has been raided by a CEO) and look to see if how overall stock market pressures to report ever increasing returns has impacted on wages (sweat shops, zero hours contracts etc ) in Burbery or TB. Also remember how pressure for perceived growth can result in subsequent bending of income recognition in applying accounting standards ( as happened in Tesco and was prevalent at Enron) or can be accomplished by direct pressure on the supplier contracts to the detriment of suppliers I am not sure how you intend to answer Q9

Hi trephena - I have had to postpone my RAP submission to Nov. 2016 and most of my RAP is prepared for Tesco. Is it still advisable to focus on Tesco given that their CG scandals are over a year old and it may have been attempted by a number of students in the past (does that matter?)? What approach must I take? Should I focus on a company with recent CG issues? Thanks ever so much.

Not necessarily. The SFO has still to release its report on Tesco and when it does Tesco will be back in the headlines - however no news yet when that will be! Certainly other students will have chosen Tesco but your grade is not influenced by what others submit, just affected by the quality of your work. Keep your work up-to-date - the latest annual report has probably been released by now, scan the business pages and of course look at other areas I have recently mentioned: executive pay and the AGM for starters. Also take a look at the position of the auditors (often overlooked in T17 ) - the UK Code suggests putting the audit out to tender every 10 years and recent EU directives endorse this and changing auditors periodically and yet this is what Tesco did! So worth commenting on and also perhaps reflecting (briefly) on whether the Big 4 operate a cartel and whether if firms were encouraged to use some of the 2nd tier firms (Grant Thornton; BDO Stoy Hayward etc.) both audit independence and quality might improve... oh and don't drag out that hoary old chestnut about the horsemeat scandal - in 2016 that is scraping the bottom of the barrel!!!

Thanks Trephena. It is a huge relief to know that Tesco is still relevant. I neither have the time nor patience to redo the entire paper from scratch. Love your comment about the horsemeat scandal, as tempting as it may be I shall leave it out. :)

hi trephena i have read all these posts here and going to start my RAP on TESCO for NOV submission. there are loads of information here. but i think i am gonna need your guidance in future..:-).. i was hoping that you would provide me with some links that i can work with..or any advice or anything..:-) thank you shafath [email protected]

Hi Trephena Did you think rentokil- initial is suitable to be use for T17 ? Kindly seek your advice . Thank you

Research is about spending time using key words in a search engine pulling up articles and from those establish leads and links to other material. Google Scholar is especially useful. Unfortunately some of the journal articles are not available without subscription although if you find such articles sometimes if you feed in the exact details of the author and article title you may find a version that is freely available (look for pdf links on the right of the Google Scholar page). For UK companies try also the BBC business online pages and those on telegraph.co.uk I have provided lots of good advice on here including previous articles on Tesco but I am now drawing the line at providing anything more than guidance. After all, a degree is about working somethings out for yourself. ( I did both of my degrees Distance learning so have been in the same position as all of you and I didn't have tutors to spoon feed me either - they just provide direction and guidance). So whilst I will send you the article on Corporate Governance you will need to do your own research abdulla as it is your RAP not mine! As for whether Rentokil-Initial is suitable I have no real knowledge of this company. Start by doing a search and seeing what is available bearing in mind that you need some good objective articles to demonstrate critical thinking. What you can't do if you want to pass T17 is just accept (or worse still just rewrite) the company's own CG statement without bringing in benchmarking and some objective external sources. I found one article about audit independence 're Rentokil in the Times that goes back to 2009. Although a bit old for a RAP in 2016 it provides as good a start as any for a section and discussion on auditor independence. However although it may take a,while reading through all the previous guidance and tips on this forum topic, there is already loads of good reliable advice here which if followed should ensure you have the basis of an approach that will pass if you supplement it with some sound relevant research of your own. :-)

when referencing can i copy and paste whats exactly written in the book and then do the referencing? will it be a problem?

No you must NOT engage in copying and pasting (unless you want to annoy the marker and end up with a fail). Just copying passages even if referenced is considered to be bad academic practice and Turnitin will very helpfully highlight all such passages for the marker to see them (it will even show where you have changed the odd word here and there so be warned). Please read my Golden Rules in my article on Referencing on our homepage www.opentuition.com/obu You need to learn to express the ideas and work of others in your own words. This means,reading a passage and summarising the key points in your own words (I give an example of this in relation to Golden Rule no.10). If you do this property and reference appropriately you will have no problems. (And also please post questions on the relevant forum topic -this query has nothing specifically to do with Corporate governance! It should be on the Referencing forum)

That's a very bad idea. Write it in your own words. @abdulla

Latest News and Updates from OBU “The Open Tuition team is delighted to announce that two of our students have confirmed that by using this Forum (T17) they not only managed to pass first time but they also achieved B grades: alfred in P29 and eminathsana in P30 (a Grade B was something awarded to only 12% of all P30 submissions). No only do we wish both of these students well for the future but hope that by using the T17 forum you too may be encouraged by their success and similarly be rewarded with a pass first time around when you submit.” I saw this on the open tuition OBU face. This is amazing . Indeed my degree is all Open tuition, thanks @trephena

Am pleased to have come across this forum. I am an Acca affiliate and have failed the RAP twice though I have passed the SLS. My first mentor did not give good mentoring he did not advice me properly and I failed terribly. My second mentor after paying him had to relocate out the city, I had just one meeting with him and submitting my second RAP was 'committing suicide'. I believe if I had come to this forum when the moderator was discussing on how to tackle T17 I would never have failed my RAP at least on second attempt. I think that from the little I have read and if I read moderator comments and that of Alfred I think I will pass T17. A senior colleague in my ACCA journey is my new mentor and fortunately she has agreed to give me all the assistance I need. Luckly it was this topic she did on second attempt and she passed. Her focus organisation was First bank in Nigeria. My focus organisation is on GT bank plc in Nigeria. @trephena do have any words of advice as I do my final battle with My RAP/

Good for you that you are persevering! I think the markers / moderators tend to be as kind as possible with a 3rd submission . Follow our advice (spend an hour or so reading the forum and make notes as appropriate) and try to bring in current CG issues relevant to your company in your analysis/ discussion. I can't be prescriptive but those factors that might affect your company and its shareholders e.g. bonuses, executive pay or particular risks it faces e.g. integrity and safety of customer data (against hacking and fraud)

Current suitable companies for anyone just starting their project (and also for the P34 submission period) would be BHS or Sports Direct. Both of these offer quite a lot of scope for developing the impact on stakeholders particularly the latter and there is plenty of up to date info on their CG issues in the business press online pages. This is not to say that other companies are not suitable. The important thing is to bring in a variety of sources so that you present a balance of opinion (company and external sources) and use these sources to introduce your own commentary and discussion (not just make references and quotations from the sources)

Thanks @trephena. I will check those companies out and get the structure for my RAP but for now I would not change my focus organization. For the Business models , do I need to state the CG codes use for analysis? Also can you make me understand CONTENT ANALYSIS?

@sonu -a development in the Tesco case which was reported today (but there may be other developments shortly) https://www.bbc.co.uk/news/business-37316125

hie trephena, i have just finished my rap.In section 1 of part 3 I analysed board composition,skills of the board mmbers,continued education,gender diversity,relations with shareholders,remuneration of directors,commiteess,.Will this be ok? And how much refencing is needed when crafting a sls.Iam focusing on Barclays bank of Zimbabwe limited

And how much refencing is needed when crafting a sls

@cayz - This very much depends on the quality of your "analysis'. It seems the markers feel that just doing very routine comparisons and retrieving info from the annual report is no longer adequate and not of itself sufficient to meet the assessment criteria without some original analytical commentary. For example you mention gender diversity: it would be expected that something like this rather than just a breakdown of the board(s) by gender also makes appropriate reference to research work on why gender diversity should be part of good governance. So some contentious issues need to be explored further, discussed and referenced to relevant sources such as the Davies Reports, The High Pay Centre etc. or academic papers of research into such issues. If this more detailed analysis presents word count issues then as mentioned both earlier on here and on the word count forum where there is a problem of word count to accommodate adequate analysis, all irrelevant and superfluous material in Parts 1 & 2 needs to be edited out. For example is a marker really interested in why you chose the topic/ company? – I very much doubt they care why and even bother reading the 100s of reasons from the 100s they mark as such information is not a component of the assessment criteria for the report (save it for the SLS); does the marker really need to know about primary data when you are not even using primary data? (If the marker doesn’t know the difference then they wouldn’t be a marking the first place. So In other words focus on what is relevant and important :-) Regarding your query about the SLS (which incidentally should have been posted on a forum topic devoted to the SLS by using our search facility). As this is a personal self-reflection on your experience it would not normally involve references.

Corporate governance in the UK is a hot topic in all senses of the word! Check out the latest issues and track them through before you submit: https://highpaycentre.org/blog/new-pm-spells-big-change-for-boards https://highpaycentre.org/blog/restoring-responsible-ownership-new-paper-by-chris-philp-mp These are just a couple of articles on the subject of boards and high pay and possible government action -all good stuff to bring in to a discussion on remuneration and rewards to board members

I have completed a large percentage of my RAP on Topic 17. I am struggling to find a comparator company - is it essential to have one or can I just compare to the Code? thank you

Wow for the past 3 - 4 hrs I have read and digested every single post regarding this T17 and I think I have passed the RAP even though I have not started it. I have built a structure in my mind of what I need to do to pass the RAP. @trephena you did and are doing a very good job in painstakingly answering questions. No mentor I know will have your kind of patience. When I have issues will come to you. Cheers.

@Catherine - as I explain somewhere on this forum it is not necessary to have one comparator but it is important that you can assess the company's CG objectively, and one way of doing this by making comparisons with other companies (maybe by using different companies to illustrate different aspects and comparisons of the application of the Code). So I suggest (as kenjohn777 has done) you spend time reading through ALL of the posts on here and you will understand the underlying thought and rationale behind this topic. You MUST do some form of critical review of your company and therefore you need to gain an appreciation of the best way for a company to achieve good governance and demonstrate best practice. Just comparing a company to the Code without any comparisons or discussion of the current issues is insufficient for a pass grade. I have made suggestions above about some areas to evaluate objectively. Another good source of relevant material is the website of the organisation Applied Corporate Governance (see their website) - here is an article that could help you develop YOUR OWN ARGUMENTS in your work when discussing the merits of separating out the roles of chairman and CEO for example: https://blog.applied-corporate-governance.com/organisation/board/should-the-roles-of-chairman-and-ceo-be-split/

How are you Guys, can someone help with appropriate models to use on part 2.Please advise.

hi i am having a little issue. My RAP is on TESCO and its financial year end is 27 feb. so of course i will be using 28 feb 15 to 27 feb 16 accounts. issue is AGM was held in june 2014, june 2015 and june 2016... so when talking about board composition/diversity/remuneration etc, which AGM/Annual reports should i prioritize. and also on 1st april 2016 there were 3 newly appointed NED'S to the board. should i talk about them in the RR?. i mean since their appointment date is far behind the year end date i am very much in need of your help. thank you

@abdulla, here are a few points to factor in. 1) OBU likes updated information so the latest AR is useful. 2) however they expect you to speak of noteworthy events that occurred, even if it took place 2 years ago. So if an AGM two years ago was to discuss a huge scandal, then it has to be used in the report for sure. 3) by talking about the 3 AGM's it is possible to show the developmental journey of the company's corporate governance over the 3 years. Finally, why were there 3 NEDs appointed? Was it because the earlier ones were not doing their job well? You should explore that. The time frame of their appointment is definitely within your report timeframe and you should discuss it. All the best The Learning Luminarium

my friend failed on his first attempt because he did not include a spreadsheet. What is involved in the spreadsheet

Hi, Trephena. I decided to select Topic 17 but I am confuse in selection of organization because: 1. I planned to go for Volkswagen company but noticed that it is German based company so shall I be using German corporate governance code or UK? 2. I then planned to go for Tesco but their scandal is in 2014, can I write on this much old topic regarding their failure to good corporate governance issue? Please guide

I heard obu want students to focuss on one organization

@cayz - please see Assessment criteria No. 7 where it clearly states that you must provide evidence of spreadsheet use. There is an opportunity within T17 to include pie charts and some graphs regarding EPS and returns to shareholders in the report so upload the spreadsheet that shows how you did these and that should be sufficient. Regarding your other comment "I heard obu want students to focuss on one organization" - the emphasis is on the word 'focus' - yes you focus on one company but you need to be able to assess the quality of its CG on various aspects and one aspect of this is to compare it with other organisation(s). @Hamasah - yes if using VW you would need to use the Kodex (the German code of corporate governance) but this is also produced in English so what is the problem? There is a good opportunity when using a company having a dual board system of CG to introduce objective discussion about whether this is superior to Anglo-American system of a single board... and also add current commentary about the proposed direction of new administration in the UK under Prime Minister May to introduce employee representation on boards in the UK (as there is under the dual system) Regarding Tesco, there has been some good recent commentary by the Learning Luminarium above on Tesco. It is your role to assess the quality of corporate governance and where there has been a problem this presents the opportunity to see what went wrong and what action the organisation has subsequently taken. A general problem according to markers is that students regard the topics as static and do not bother to think outside the box - which is why those that do and research well around their topic and look at issues and bring in evidence of thorough recent research are those that tend to get the A & B grades.