Governance and ethics Flashcards
From a wide view to a narrow view, what are the four perspectives of corporate governance?
Public policy
Stakeholder
Corporate
Stewardship
What are the two types of financial system?
Bank-based
Market-based
In which type of financial system:
are the banks and businesses highly integrated?
bank-based
In which type of financial system:
are stock markets volatile and speculative?
bank-based
In which type of financial system:
are stock markets more efficient?
market-based
In which type of financial system:
do households bear little risk?
bank-based
In which type of financial system:
do households bear more risk?
market-based
What are the two types of board structure?
Unitary
Dual
What are the two components of a dual board?
Management board
Supervisory board
The Companies (Miscellaneous Reporting) Regulations 2018 require some companies to include a statement in their annual reports that discloses their corporate governance arrangements if they meet any of the following:
More than 2,000 employees worldwide
Turnover > £200m globally
Total assets > £2bn
What are the six Wates Principles about?
Purpose and leadership
Board has an effective chair
Directors’ responsibilities include robust internal control systems and effective decision making
Identification of opportunities and management of risks
Remuneration aligned to long term sustainable success
Meaningful stakeholder engagement
Are the Wates Principles compulsory?
No, but if companies want to follow the principles then they follow an “apply or explain” approach
What are the five Nolan principles?
Integrity Objectivity Accountability Openness Honesty
What are the five institute of business ethics principles?
Respect Transparency Fairness Responsibility Trust
What are the three statutory requirements for all companies?
Equality for all
No discrimination on any grounds
Freedom of information
