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@trephena,thks a bunch your response has been informative.can i used two different codes to butress my point on the quality of CG of my potential coy..my challenge is,this two codes has signficant similarities but few differences..
i want to research on a bank and and the bank in question is a quoted coy..firstly,there is code of CG issue by the central bank of nigeria for banks and also there is another code of CG issue by the Nigeria sec for listed coys..pleaase can i use this two codes or use anyone out of the two as benchmark to assess the qulaity of CG in my potential bank.
Thank you
@segem – I suggest you pick and choose the best bits of each Code as the overall aim is too assess the quality of the company’s CG. You should try to make some comparisons with another bank at least when looking at the composition of the Board and directors pay etc. If all you do is only benchmarking to one code your analysis would only be ‘one dimensional’.
@trephena
Yes Many of them cut their stake or sold off completely.The biggest problem now is what to include in my content of conclusion and recommendations.
I seem to have just one broad opinion that Tesco from here on out should give significance to the substance over foram of complying to these codes.
So far the new leadership has made difficult but yet much neded decisions which seems to slowly pull tesco back upz
I do not know any specific recommendations i can to advise as I feel my view is limited.
What course of action do you suggest i carry on moving forward with the conclusion.
My word limit is almost 6900 nowEena
@Eena – you have to reach a conclusion on the quality of Tesco ‘s CG based on the evidence you have found in your analysis.
For help with recommendations see
https://www.applied-corporate-governance.com/best-corporate-governance-practice.html
The total wordcount from coversheet to end of recommendations and conclusion is 7,500 so don’t think you have a real problem
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@trephena,I check the link you share with Eena, but it was about the principale of CG…how can one really applies those principle to make a meaningful conclusion and recommendation.
Or is it possible to formulate principles of CG from the culture,mission and vision of a coy and if it is possible to formulate such,how can one apply it to assessed the quality of CG for the purpose of making conclusion and recommendation.
Segem
@segem -scroll down to the Golden Rules section -these are intended to help with recommendations an area Eena was struggling with.
As your second paragraph suggests good CG should be tailored to the culture and stakeholders rather than ticking just boxes for a Code. Tesco is a prime example of this (Eena is doing Tesco) – their 2014 CG statement was all about how they had complied with the Code etc but the reality was that they had not complied with accounting standards and had engaged in questionable ethical practices that in the end have not benefitted shareholders and suppliers and have impacted badly on employees (caused lots of job losses) as customers have lost trust and gone elsewhere.
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@trephena,does this topic require any form of literature review,like theories of CG,background info of the company,etc
@segem Yes in Part 2 you should do something on Cadbury and the history of CG -maybe a little on agency theory and what the Codes hoped to achieve. You can then return to this in your Conclusion on whether CG via the Codes has succeeded in achieving the objectives envisaged
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@trephena,under what subsection will that be in part 2,am planning to write base on the local code here in nigeria,so why cadbury?i thought even if am gona write something about cadbury and history of CG,it should be in part 3,because everything under part 2 relates to information gathering, limitation,ethical factor and business model
@segem – Part 2 sets the scene for your information gathering so you need to cover the background of the history of CG (briefly) and its influence on subsequent codes. CG is an evolving discipline and I think you will find that most Corporate Governance systems worldwide were influenced by Cadbury 1992 (and successive reports such as Greenbury, 1995) which preceded the OECD CG principles and certainly influenced it and King 2002. The Nigerian Code came after these and no doubt in the banking sector there was some pressure from the World Bank for the CBN to abide by an appropriate CG Code. See:
PART 2 is background and theory and Part 3 is actual findings and analysis so ethics in practice in the bank would NOT go in Part 2
@Segem – the best thing you can do for yourself is to choose a multinational company for your study. My reason for saying this is because if you go to Google to search for information on those companies, you see a thousand and one sources giving you information that is different from what your case study organisation is saying.
In my previous submission, I selected First City Monument Bank (FCMB) as the case study. But I had so many challenges in part 3 due to lack of independent sources of information.
Our Nigerian banks are very secretive with these information and the media does not report on these issues.
Ofcourse, your bank will say they are complying with the codes but without independence sources of information, you’ll have no way of knowing if this is true or not. So you’ll end up agreeing that they complied.
Although my report is on topic 20, it’s similar to topic 17 so you are likely to face the same issues I faced.
And if you have the resources, contact learning luminarium to be your mentor.
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@unyimeedem,thanks for the observation,but most of our banks have gone multinational in recent time.you said you used fcmb,but fcmb is a multinational with subsudiary in other africa countries and the UK..so am yet to come to terms with your assertion.what year did you write your project and which of the codes did apply,please i had like read from you.
for me fcmb is a multinational and a listed coy on the NSE should have enough independent source of information..please let me know the code you used for your comparison.
Thank you.
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@trephena,are you suggesting i use any of the cadbury report and greenbury report,since you told me from our previous discussion that i can as well used the the nigeria code..please am confused.
Thanks
@segem – I have said it is fine to use local applicable codes in Part 3.
I mentioned Cadbury (and Greenbury) in the context of the brief outline of the history of CG that you are expected to do in Part 2 (a bit like a literary review) From the previous link you can see how CG In banking codes in your country has developed from the principles of CG proposed by the OECD which indirectly stemmed from the issues of stewardship, agency problems and accountability that Cadbury identified.
As @unyimeedem has mentioned it is VERY important with both T17 and T20 that you find independent commentary on the company from sources external to the organisation you are using. This is because the markers do not want just a rewrite of the company CG statement -they expect evidence of some critical thought and a balance of opinions in students’ work.
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@ trephena, i have decided to use secondary data for my project as i think it will be easier and of course like many would like pass at first submission!!… lol.. I have also decided to go for a company that is known to have a problem with their board members and remuneration of directors, as i think it will make my presenting quiet interesting. Thanks for the advice you gave me regarding secondary data vs primary data i would like to say that you were right, its very difficult to implement. It was like God’s grace when the company i approached rejected me to do the project with them. I have decided to use the Kings 111 as my framework and my business model, i hope this is a good idea?
I have a question that i hope you will be able to answer; how do i test for ethics if i use secondary data.
@tshepo123456 – Kings should be fine. In Part 2 part of it is like doing a literary review briefly where you discuss the development of CG and state why you consider Kings lll is appropriate.
With Ethics you normally have to research from independent sources as the company though it may produce an ethics statement is never going to say that it is not behaving ethically. So you look for articles that either question some of the company practices or praise them for the way they operate or find examples of awards they have received for good staff relations, or customer and community relations. There are some websites that rate big companies on ethics or comment on those that overlook the welfare of overseas workers etc. Bring in these sorts of things to either support or counter the company statements.
You do not have to make a judgment but just let the reader know that you have researched well and have a balanced report i.e. it does not assume just because the company says it does something it practices this in reality without looking at available evidence. (Remember Tesco had a good CG statement in 2014 and promoted itself as an ethical company and no doubt so did Volkswagen, which as I write is suspected of very underhand and illegal behaviour that deliberately set out to deceive regulators regarding pollution control).
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@ trephena thanks for your swift response, i will surely do as you advise. The other thing i find very awkward is the research questions, i feel OBU is just repeating the objectives, I am finding it difficult to come up with questions when i have stated my objectives.
I will be submitting my project in P32, is ther any advise that you would like to advise me regarding this project?
Thanks alot Trephena, i dont know what i will do without your assistance.
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@trephena
In situations where the Anglo-Saxon model of CG is being practised, it seems logical that “key stakeholders” refers to only the shareholders. The obvious reason being that it’s a market-based shareholder model.However, if Mendelow’s stakeholder mapping puts regulators and employees in the category of high power and interest, does this imply that the “…impact on shareholders” doesn’t necessarily have to be a part of this report? – considering the word count!
@sssteeeve – The key word in T17 is ‘Quality’ of the organisation’s CG and its impact on its principal stakeholders and NOT just the shareholders that any code you are using may have restricted itself to.
I would not include regulators or legislators in the Mendelow analysis as although they may have supreme power, this and any interest is at a macro level and therefore not directed specifically at the individual entity you are studying. Mendelow needs to be applied in the context of the particular organisation under review i.e. looked at from the micro level. It is more obvious who these other stakeholders are when one considers who would be affected by poor CG. To take a very topical case, the Volks Wagen scandal – the whole community of the German town where VW has its manufacturing base, workers there and overseas, and the company’s customers are implicitly interested.
To be successful with T17 (or T20) students need to think ‘outside’ the box’ and do adequate independent research (as no doubt any who fail these have been told in their feedback)
Great news everyone! – eminathsana sent me a PM to say that not only had they passed first time with their T17 submission but like alfred, they too had been awarded a grade B !!! This is an exceptionally good result as only 12% of the total P31 submissions were awarded a B. So very well done for eminathsana who apparently hadn’t even studied yet for the P1 paper and congratulations to everyone else using this T17 forum who also passed in P31. 😀
Anyone who is new to this Forum topic -read all of the posts here on how to produce a successful RAP on T17 Corporate governance and you to could be celebrating shortly. 🙂
One thing I have heard that markers will be looking out for in P31 is a bit of a ‘literary review’ / background to CG. In Part 2 Don’t go overboard and produce a long boring commentary citing every consultative report that has ever been written but show you understand why in the late 20th century CG became so important and why decades on it still seems hard to achieve a perfect ‘system’ (as all the infamous scandals of the last 15 years have demonstrated). You may find that the Big 4 accounting firms have some discussion on evaluating CG so worth looking at their sites and publications
hey guys which accounting or business techniques should I use for topic 17? Can I use the mendelows matrix and the COSO Framework? If yes is there any other that I can also use?
Yes Medelows matrix is the one usually used for the stakeholder section. If your company is US registered then the COSO framework is very relevant (I particularly like the COSO Cube). Remember though you should do some sort of benchmarking too and make comparisons with other organisations to help with some objective assessment of your organisation.
Thank you Trephena. I am in Zimbabwe and I am using a local bank.
My mentor said I should also use primary data for my research, so I used a questionnaires from a certain website. My question is should I also reference these questionnaire as they are not part of the main report.Oh NO!!!! Please do not go there! Please see my reply to @thusang on p.2 of this forum topic. Sorry but your mentor is wrong on this one. Believe me unless you know what you are doing if you include a questionnaire at the expense of doing proper objective analysis you are giving your RAP the kiss of death 🙁
(Anyway why include one when both @alfred and @eminathsana both got a B without doing one!???)
Unless you really understand statistics and how to design and implement a good survey it is not advised. If you are going ahead with one then take a look at /www.applied-corporate-governance.com/importance-of-business-ethics.html and read up on how best to go about it….(in the real world, yes companies should survey their stakeholders but they would use a suitably qualified statisticians so the results would be reliable – something that can rarely be said about RAP student surveys alas!)
Good luck!
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