CHAPTER 3

Question 1

: If all board members have the same level of experience and similar skill sets, you
will not find the diversity of opinion required to rigorously challenge the company’s
strategy and ensure it is watertight.

Answer 1

Balance board composition

Question 2

: Greater diversity boards introduces new ways of thinking and creative methods of
solving problems, which prevent directors from resting on their laurels.

Answer 2

Balance board composition

Question 3

: Board diversity is all about filling gaps in boardroom expertise to provide a
broader range of viewpoints and a fresh perspective using strategic succession
Planning.

Answer 3

Balance board composition

Question 4

: Helps you track progress over a period of time and understand where your own
strengths lie as well as give you a good understanding of the areas that need improvement.

Answer 4

Evaluate the board regularly

Question 5

: Open communication and transparency in the evaluation process breed confidence
and trust within the company and help you in your efforts to grow that diverse
board of directors.

Answer 5

Evaluate the board regularly

Question 6

: Evaluations should not be a tick-the-box exercise; they should feature candid, in- depth
conversations that give you real data to work with to instill a culture of continuous
Improvement.

Answer 6

Evaluate the board regularly

Question 7

: Independence is desirable on a board that wants to break away from safe, conservative
thinking.

Answer 7

Ensure director independence

Question 8

: Forward-looking boards need directors that are not afraid to think outside of the box, rather than simply continue down the same road the company has always taken. It helps create
innovation and avoid stagnation.

Answer 8

Ensure director independence

Question 9

: In addition, independent directors are more likely to provide insights that benefit the shareholders, given their different perspective on matters.

Answer 9

Ensure director independence

Question 10

: Undue influence over the work of audit committees and independent auditors is a concern in
terms of corporate governance.

Answer 10

Ensure auditor independence

Question 11

: Investors need to know that they can trust the financial reporting that an issuer makes, so
independence is key to show that the reports are accurate and tell the true tale of the
Company.

Answer 11

Ensure auditor independence

Question 12

The openness and willingness to share accurate, clear and easy-to- understand information with stakeholders, including shareholders, breeds trust and solidifies a
business’s reputation.

Answer 12

Be transparent

Question 13

: This means that organizations have to accurately report the bad news as well as the good.
Trying to avoid negative publicity only to be found out later is more damaging for a business
and its reputation. Full disclosure breeds integrity.

Answer 13

Be transparent

Question 14

: Shareholders should know their rights when they invest in your business and you should
ensure that the rights you provide are backed up by your Articles of Association, constitution
and company bylaws.

Answer 14

Define shareholder rights

Question 15

: Decide whether all shareholders have the same voting rights or whether different classes of holdings have preference.

Answer 15

Define shareholder rights

Question 16

: Can they approve certain transactions?

Answer 16

Define shareholder rights

Question 17

: Can the board act without their approval?

Answer 17

Define shareholder rights

Question 18

: Do you have policies for extraordinary transactions?

Answer 18

Define shareholder rights

Question 19

Give all issues you need to resolve before formalizing shareholder rights and ensuring you regularly review your policies.

Answer 19

: Can they approve certain transactions?
: Can the board act without their approval?
: Do you have policies for extraordinary transactions?

Question 20

: Although short-term wins look good and create opportunities for publicity, long-Term value
creation should be the aim of a company with solid governance.

Answer 20

Aim for long-term value creation

Question 21

: A business that is committed to sustainable growth is likely to be much less volatile than a
company with its eye only on the short term.

Answer 21

Aim for long-term value creation

Question 22

: Identifying risks is important, but taking a proactive approach to mitigate that risk before you
face it is the goal. Rather than attempting to weather the storm, it is better for the
organization to avoid the storm completely.

Answer 22

Manage risk proactively

Question 23

: A solid risk management process, an internal control framework and an up-to-date disaster
recovery plan are all key to achieving this aim.

Answer 23

Manage risk proactively

Question 24

: Sustainability and strategic management are increasingly intertwined in the corporate world,
as investors make their preferences heard. Major events such as Covid-19 and the climate
crisis have thrown into sharp relief the need for a sustainable outlook from issuers.

Answer 24

Follow sustainability best practices

Question 25

Consumers have also started to prefer shopping with businesses that boast sustainable
Practices.

Answer 25

Follow sustainability best practices

Question 26

: There should be easy-to-access documentation of your policies and procedures relating to
shareholder rights, executive compensation, board meeting operation, the election of new
directors, and more.

Answer 26

Document policies and procedures

Question 27

: This ensures transparency and consistency within the organization.

Answer 27

Document policies and procedures

Question 28

: is the term that describes the situation when the goals of different interest groups coincide.

Answer 28

Goal congruence

Question 29

: is a concept that refers to the alignment of goals between different levels of an organization or
between individuals within an organization.

Answer 29

Goal congruence

Question 30

: The extent that individuals and groups perceive their own goals as being satisfied by the
accomplishment of organizational goals is the degree of integration of goals.

Answer 30

INTEGRATION OF GOALS & EFFECTIVENESS WHEN TEAM BUILDING

Question 31

When organizational goals are shared by all, the term goal congruence can be used.

Answer 31

INTEGRATION OF GOALS & EFFECTIVENESS WHEN TEAM BUILDING

Question 32

: To illustrate this concept, we can divide an organization into two groups, management, and
subordinates. The respective goals of these two groups and the resultant attainment of the
goals of the organization to which they belong are illustrated in Figure 1.

Answer 32

INTEGRATION OF GOALS & EFFECTIVENESS WHEN TEAM BUILDING

Question 33

: In this instance, the goals of management are somewhat compatible with the
goals of the organization but are not exactly the same. On the other hand, the
goals of the subordinates are almost at odds with those of the organization.

Answer 33

INTEGRATION OF GOALS & EFFECTIVENESS WHEN TEAM BUILDING

Question 34

: The result of the interaction between the goals of management and the goals
of subordinates is a compromise, and actual performance is a combination of
both. It is at this approximate point that the degree of attainment of the goals
of the organization can be pictured.

Answer 34

INTEGRATION OF GOALS & EFFECTIVENESS WHEN TEAM BUILDING