Corporate Governance and Systems Integration Flashcards

1
Q

What is the purpose of corporate governance?

A

Provide a framework and guideline as to how the organisation is managed and controlled
Sets out responsibilities, practices, principles and processes - best interest of stakeholders

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2
Q

According to Johnson, Scholes and Whittington, what is the definition of corporate governance?

A

Concerned with the structures and systems of control by which managers are accountable to those who have legitimate stake in the organisation

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3
Q

What is the Sarbanes-Oxley Act 2002?

A

It sets out clear standards for company boards - it aimed to improve financial disclosure with organisations. SOX came about due to high profile cases in the USA

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4
Q

What are the 2 important elements of segregation of duties

A

Non-executive directors - impartial view and bring skills to exec board
Transactions - ensuring no one person is able to transact an entire business process without proper checks

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5
Q

Name 4 ethical practices

A

Customers - fair treatment, safe quality products
Suppliers - transparent, equal, respectful, fulfil obligations
Corruption - fraud, bribery corruption must be avoided
Conflict of interest - must be declared
Staff - fairly, equality and respect
Finance - financial responsibilities must be met

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6
Q

What are the two main methods that can be implemented to detect ethics breaches?

A

Whistleblowing - should be supported by all orgs

Ethics audit - part of supplier relationship management, regular review

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7
Q

What are the steps an organisation should take if an ethical breach has been detected?

A

Gather evidence
Establish the severity
Escalate to senior staff and the PR team
Identify how breach occurred and draw up action plan

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8
Q

What things can be implemented to avoid potential future ethical breaches?

A

Training and education

Ethically focused performance measures (staff and suppliers)

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9
Q

What is a system?

A

a set of principles or procedures according to which something is done; the focus is on meeting a desired outcome
Systems need to be continually monitored to ensure that they are continually delivering business benefit

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10
Q

Describe what a control system does?

A

Captures control data and feeds it back to the system for analysis where it can be acted upon

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11
Q

What’s the difference between control environment and control procedures?

A

Control environment - reflect orgs values and cultures and the style and attitudes of management
Control procedures - individual control mechanisms, budgets, segregation of duties, FALs

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12
Q

What are the 2 types of system integration?

A

System integration - bringing all systems together into one value adding system
Vertical integration - integrating sub systems according to functionality
Horizontal integration - integrating different sub systems which span functions, e.g. ERP systems, manage info across entire org

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13
Q

What are the 2 options you can use when integrating systems across supply chains?

A

Option 1 - create one system with all data stored centrally

Option 2 - create a network of interfacing, but separate systems - real time data exchange

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14
Q

name 5 benefits of good corporate governance

A
increased market value,
Improved credit rating,
attractiveness to new investors,
higher credibility, attractiveness as an employer,
compliance and reputation
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15
Q

what are the key principles ethical sourcing supports

A

freedom of association, collective bargaining, elimination of forced labour, elimination of child labour, elimination of discrimination

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16
Q

name 4 principles of corporate governance that might be adopted by an org that operates in a global SC?

A
rule of law
identity - needs to be registered, clear responsibility
purpose - 
power - not using power unethically
participation - from stakeholders
transparency - 
Accountability - 
Sustainability -