Governance - Course Notes Flashcards
In a weaknesses in corporate governance question, what do you need to take into account?
- Identify the current structure
- Identify the weaknesses
- Explain why there are weaknesses
- Identify how they can be corrected
- Justify why suggestions would correct weaknesses
- Recognise professional marks
In a stakeholder analysis question, what do you need to take into account?
- All categories of stakeholder
- Their power and interest BEFORE
- Their power and interest AFTER
- Strategies for dealing with them BEFORE
- Strategies for dealing with them AFTER
In an environmental and sustainability audit question, what do you need to take into account?
- Advise them to have an audit
- Justify why
- Suggest ways to manage
What are the three basic groups of stakeholders?
- Internal
- Connected
- External
What is the acronym for the basic group of stakeholders?
ICE
Who are included in the internal group of stakeholders?
Directors, managers, employees
Who are included in the external group of stakeholders?
Government, pressure groups, local community, media
Who are included in the connected group of stakeholders?
Shareholders, lenders, customers, suppliers
What is a voluntary stakeholder?
Engage under free will
Narrow stakeholder
Heavily affected by a company’s strategies and actions
What is an involuntary stakeholder?
Involvement is imposed upon them
Wide stakeholder
Less affected by a company’s strategies and actions
What is used when describing stakeholders power?
Mendelow’s Matrix
If a stakeholder has high power and high interest, what happens? Give examples
INVOLVE
Key customer
Active major shareholder
Trade unions
Secured lender
If a stakeholder has low power and high interest, what happens? Give examples
CONSULT / INFORM
Local community Pressure group Local media Local government Individual shareholders Individual customers
If a stakeholder has high power and low interest, what happens? Give examples
CONSIDER IMPACT OF ACTIONS/SATISFY
Central Government
Passive major shareholder
National Media
If a stakeholder has low power and low interest, what happens? Give examples
IGNORE
Individual householders
What is EMAS?
Eco Management and Audit Scheme
Describe EMAS
Voluntary scheme that requires the company to:
- Set targets
- Focus on improvement
- Produce an annual disclosure report
- Have on site inspections each year of systems
- Full audit of disclosure report every three years
Describe ISO 14000/14001
- Guidance on how to minimise the firm’s environmental impact
- Guidance on how to create an Environmental Management System
- Firm produces a policy
- Regular assessment of impact on the environment
- Public declaration of compliance with the ISO only
What does a social audit assess?
Resource usage
Health and safety
Labour work conditions
Is there a legal requirement for an environmental audit?
No but in response to public pressure more companies are choosing to do so
What are the types of tasks that you would get for a governance question?
- Strengths and weaknesses
- Developments
- Business mergers
- Assurance
- Criticisms of a proposed strategy
