Chpt 1 Flashcards
What did Cadbury (1992) define as the four responsibilities of the board?
- Setting strategic aims
- Using leadership to implement these
- Supervising management
- Reporting to shareholders
Case study: Parlamat
Italian multinational dairy and food corporation.
Collapsed with €14 billion hole in accounts (Europe’s largest bankruptcy).
CEO sentenced 10 years in prison for fraud.
Case Study: Kids Company
Founded by Camil Batmanghelidjh in 1996.
Received high-profile support from businesses. Its collapse became political issue; £3 million emergency grant from UKG following warnings its reserves were inadequate in 2009.
Exuberance and charisma of founder misrepresented reality of financial situation.
Case Study: VW
New product lines won environmental awards and tax breaks but its 2015 diesel emissions scandal led to company spending $7.3 billion to cover costs and $4.3 billion in penalties.
Board only uncovered dishonesty just before media - accoutanble for the cultue that misguided incentivisation.
ICSA “Boardroom Behaviours” point on override of controls.
“[…] an emerging view is that the system of governance for companies is not inherently “broken”, but rather that its effectiveness has been undermined by a failure to observe appropriate boardroom behaviours.”
What is CIPD definition of human capital?
Sum of knowledge, skills and experience and other relevant workforce attributes that reside in an organisation’s workforce and drive productivity, performance and achievement of strategic goals.
What does the “Maturity Institute” (UK NFP professional development body) talk about?
“Human Governance”. It uses Toyota’s engaged and purpose-infused workforce as a benchmark employer to do this.
Human capital in the boardroom (skillset and mindset) often starting focus for investors as their proxy to assess investment risk and reward.
What is CIPD definition of “war for talent” (1997)?
The systematic attraction, identification, development, engagement, retention and deployment of those individuals with high potential who are of particular value to an organisation”
What did a report from EY’s corporate governance team reveal?
Risks recorded in the risk section of company ARA - 63% were associated with people risk and most of the remainder had a people/cultural aspect underpinning these (e.g. cyber security).
NB - most security threats (recent studies suggest over 90%) emanate from internal staff through negligence, accidental disclosure, lost or stolen devices and specific digital skills shortages.
State some facts on stress-related illnesses
Both absenteeism and presenteeism are on the rise. Often leads to chronic lack of engagement, productivity and performance.
Consequences could lead to H&S breaches - expense of relationship quality - family life and personal growth.
What did 2018 Gallup survey of 7,5000 full-time employees in USA reveal?
Over 2/3 reported feeling burnt out at work (23% ‘very often’ or ‘always’; 44% ‘sometimes’).
Financial impact of burnout in healthcare spending alone estimated $125-190 billion.
Case study: Arianna Huffington (former president and editor-in-chief of Huffington Post Media gRoup)
Broke her cheekbone as a result of a fall brought on by exhaustion and lack of sleep.
What did McKinsey report “Mental health in the workplace: the coming revolution” reveal?
COVID-19 may have provided a jolt.
Pre-existing MH challenges have been exacerbated by COVID-19.
It cited 50% increase in prevalence of behavioural health conditions.
Statistically, this makes workplace stressors as harmful to health as second-hand smoke.
Stress is a diversity issue; minorities suffer more symptoms and consequences than majority counterparts.
What is personal reiliance?
Ability to bounce back and positively withstand strain over periods of time.
What is the “Great Man” theory?
Leaders were born and not made (mostly male) or at very least required a privileged education and fast-tracked organisational trajectory.
Swoops down to rescue orgs single-handedly - media archetype.
Usually only generate short-term disruptive change and are impotent at nurturing organisational cultures for longer-term sustained value.
