...effective corporate governance Mayanja MK and Van der Poll HM Department of Management Accounting, Unisa, Pretoria, 0003 South Africa. Accepted 28 September, 2011 Management accounting is not given sufficient emphasis, at the board level, as a provider of timely and relevant information to facilitate the execution of good corporate governance. Without management accounting information corporations in Botswana may find it difficult to create sustainable corporate governance. A qualitative approach using questionnaires and interviews were used to establish the extent to which management accounting tools are applied by the directors in the target companies. The research was carried out amongst listed companies on the stock exchange and the parastatal companies in Botswana. Furthermore documentation, for instance annual financial statements from the companies were reviewed. Most directors in the companies do not fully utilise the tools of management accounting in decision making. Management accountants have also failed to provide the relevant information to the board. To execute their duties efficiently, directors may need to call for the management accounting reports from the senior management level up to the board level and regularly use these reports to facilitate decision making. Key words: Management accounting, corporate governance. INTRODUCTION Management accounting, which was traditionally intended for internal use in companies has through its ability to measure value and...
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...philosophy, aiming to have the global community—including our customers, shareholders and investors—place even greater trust in us as we strive to be a company society wants to exist. To ensure objective oversight of management, Honda appoints outside directors to its Board of Directors and outside auditors to its Board of Auditors. To strengthen its business execution system in each region and workplace, as well as enhance the supervisory function of the Board of Directors, Honda has introduced an Operating Officer System. To help its Board of Directors respond quickly to changing business environments, as well as to improve the flexibility of its decisionmaking process, Honda limits directors’ assignments to one year and Corporate Governance: Organization Board of Auditors: 5 Auditors (Outside Auditors: 3 Auditors) Business Ethics Committee: 6 Officers Compliance Officer Regional Sales Operations (Japan) Regional Operating Board Risk Management Officer Regional Operations (North/ Central America) Regional Operating Board determines their compensation in accordance with business results. Based on its fundamental corporate philosophy, Honda has refined its organizational structure. A general manager from the Board of Directors or an Operating Officer is now assigned to each administrative region, business and functional division. The Executive Council deals with important global issues, and regional operating councils deal with important regional management issues. Honda has...
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...research. a) Overview: 1. What are the basic principles of corporate governance? • Transparency: Are the board telling us what is going on? • Accountability: Is the board taking responsibility? • Corporate Control: Is the board doing the right thing? 2. What mechanisms are suggested by the ASX corporate Governance Council? Relating to the three principles stated in the last question. The ASX Corporate Governance Council translates the elements into mechanisms: • Is the board telling us what is going on? →forming an environment to take risk. • Is the board taking responsibility? →clarifying the role of the board and management. • Is the board doing the right thing? →Meeting information needs of investment communities. 3. What is an SME? SME stands for Small and Medium Enterprises. 4. What processes would you expect to find in a company relating to risk management and compliance processes? • Policy/framework • Board commitment, oversight and review • Accountability • Risk processes: o Risk identification o Risk assessment/measurement o Risk response • Robust appropriate internal control and statutory and regulatory compliance...
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...statement The Board of Directors is accountable to the Shareholder for the overall performance of the Group. In doing so, it is responsible for: • • • The effective, prudent and ethical oversight of the Bank; Setting the business strategy for the Bank, following consultation with the Shareholder; and Ensuring that risk and compliance are properly managed in the Bank. Board of Directors and Membership The Board of Directors recognises its responsibility for the leadership, direction and control of the Bank and the Group and its accountability to the Shareholder for financial performance. As at 31 December 2010, the Board comprised the Chairman, four Non-executive Directors and the Group Chief Executive. The Board sees it as a priority to further enhance its existing skills and experience through the recruitment of further independent Non-executive Directors, with a process having commenced in this regard. The Non-executive Directors are independent of management, with varied backgrounds, skills and experience. There have been a total of 39 board meetings during the financial year, 10 of which were scheduled. The purpose of the 29 unscheduled meetings was to address a variety of matters, including discussions in respect of the difficult market conditions that existed during the financial period and included funding issues, capital matters, legacy related matters and the Bank's Restructuring Plan. All Directors are expected to attend each meeting and the attendance at board and committee...
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...Clause 49 of Listing Agreement The company agrees to comply with the following provisions: I. Board of Directors (A) Composition of Board i. The Board of directors of the company shall have an optimum combination of executive and non-executive directors with not less than fifty percent of the board of directors comprising of non-executive directors. ii. Where the Chairman of the Board is a non-executive director, at least one-third of the Board should comprise of independent directors and in case he is an executive director, at least half of the Board should comprise of independent directors. Provided that where the non-executive Chairman is a promoter of the company or is related to any promoter or person occupying management positions at the Board level or at one level below the Board, at least one-half of the Board of the company shall consist of independent directors. Explanation-For the purpose of the expression “related to any promoter” referred to in sub-clause (ii): a. If the promoter is a listed entity, its directors other than the independent directors, its employees or its nominees shall be deemed to be related to it; b. If the promoter is an unlisted entity, its directors, its employees or its nominees shall be deemed to be related to it.” iii. For the purpose of the sub-clause (ii), the expression ‘independent director’ shall mean a non-executive director of the company who: a. apart from receiving...
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...International Diploma in Compliance Assignment due date - 29th August, 2011 Industry - Banking Board Memorandum To : Board of Directors Executive Management Subject : Recommendations to promote the independence of the Compliance Function Date : 29th August, 2011 In reviewing last year regulator’ report on our bank, the bank have been imposed more than fifteen major violations from the regulators and some of the violations have got the bank into paying a huge amount of penalties. When penalties imposed the reputation of the bank will be at risk and this risk will lead the bank to financial loss. The bank has to redefine its risk measures and practices to avoid such failure in meeting regulators needs and meet all compliance requirements. Compliance Risk Our bank is conceder to be one of the leader banks nationally and internationally and in order to keep this position the bank has to manage its compliance risk strictly starting from compliance function. The very common practice which conceder to be an issue from a regulatory aspect is going through all the rules and regulations and stating we are in compliance with them and we are not 100% complied. Now it is the time for the bank to put a full stop on such kind of issues and focus on working on compliance risk by having an effective and efficient compliance function. Effective Compliance Function In April 2005 Basel Committee on Banking Supervision released a paper on Compliance and the Compliance...
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...Corporate Compliance Plan: Riordan Manufacturing Corporate governance can be thought of as the overall umbrella of control and direction under which a corporation operates. Enterprise Risk Management (ERM) is “a process, effected by an entity's board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risks to be within its risk appetite and to provide reasonable assurance regarding the achievement of entity objectives,” (BusinessDictionary.com, 2008). Ideal management of risk involves mitigating negative risk while taking advantage of positive risk. The board of directors is responsible for establishing an enterprise risk management philosophy that guides senior management when implementing an enterprise risk management plan for the company. Internal controls are a subset of ERM. “Internal control is broadly defined as a process, effected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: effectiveness and efficiency of operations; reliability of financial reporting; compliance with applicable laws and regulations” (COSO, 2008). Internal controls assure accuracy of reporting of information and objectives. To develop a corporate compliance plan for Riordan Manufacturing, the three areas of concern should include the proposal...
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...Best Practices: Nonprofit Corporate Governance One of the most significant and valuable developments of the post-Sarbanes-Oxley Act environment has been the emergence of governance “Best Practices” proposals designed to enhance and improve corporate responsibility and governance. These proposals have come from a wide variety of sources, ranging from self-regulatory agencies (e.g., NYSE, NASDAQ) and business groups (e.g., The Business Roundtable, The Conference Board, National Association of Corporate Directors) to professional associations (e.g., the American Bar Association) and major corporations (e.g., General Electric, WorldCom, TIAA/CREF). While most of these Best Practices proposals have been recommended for adoption by public companies, their relevance as an aspirational goal for nonprofit corporations and non-public companies is widely recognized. From these and other resources, we have developed the following set of guidelines as “food for thought” concerning governance “Best Practices” to assist nonprofit corporations in responding to the current “corporate responsibility” environment. To set the proper perspective, a few important caveats are in order. First, these are Best Practices guidelines, and do not in most instances, reflect current legal requirements. Instead, the guidelines reflect our perspective on evolving trends in nonprofit governance and law. In many circumstances, adoption of, and adherence to, “Best Practices” may reduce a nonprofit corporation’s...
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...Governance & Diplomacy EM 557 Course Teacher Md. Mesbah Uddin Topic Term Paper: Corporate Governance Practice of British American Tobacco, Bangladesh Ltd. 29- 07- 2012 Date Submitted by Name Nahid Rijwan Roll 3-09-17-033 CONTENTS Topic CHAPTER – 1 About British American Tobacco Bangladesh Business Principles of BAT, Bangladesh Standards of Business Conduct of BAT, Bangladesh: CHAPTER – 2 Corporate Governance Statement Board of Directors of BAT Bangladesh and Their Roles Relationship with Shareholders Accountability and Audit Compliance with Legal Requirements Employees Standards of Business Conduct CHAPTER -3 Corporate Social Responsibility Statement Probaho Socially Responsible Tobacco Production (SRTP) Deepto Afforestation CHAPTER - 4 Auditor’s Report to The Shareholders 16 12 12 13 14 15 6 7 9 10 10 10 11 1 2 3 Page CHAPTER - 5 Comparative Analysis of Bat Bangladesh’s Corporate Governance Compliance Status of compliance with the Provisions Denoted in the Code of Corporate Governance for Bangladesh, March 2004 Status of compliance with the Conditions Imposed by the Securities & Exchange Commission's Notification 21 19 18 REFERENCES 23 ANNEXURE - I 24 CHAPTER – 1 About British American Tobacco Bangladesh: British American Tobacco Bangladesh is one of the largest multinational companies in the country and has been operating for over 100 years. There are over 1,000 employees and take pride in being one of the preferred employers in Bangladesh...
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...failures of the governance system at all levels of the university and not only with in the Board of Trustees. As reported in the Freeh Report, chapter 1 (Key Findings); each school and large department of Penn State have their own Human Resources Staff. Amongst the individual Human Resources Departments if they hadn’t opted out; they were at least lazy with standard rules and procedures for implementing University Policies and rules (includes over 350 policies and procedures for which oversight and compliance is decentralized and uneven). In addition there was no centralized office, officer or committee to oversee compliance with laws, regulations, policies and procedures. Some departments even monitored their compliance issues with the very limited resources available to them from within the departments. The university Police Department was responsible for compliance with the Cleary Act which requires the university to collect crime statistics relating to designated crimes; including sexual offenses occurring on university property and make timely warning of certain crimes that pose an ongoing threat to the community and prepare an annual safety report to be distributed to the campus community. The Cleary Act also requires “Campus Security Authorities” (Coaches, athletes and directors) to report crimes to the Police Department. From 1991-2007 the university delegated Cleary Act compliance to the Police Department’s Crime Prevention Officer (CPO) who had not received any formal...
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...Introduction Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. The principal stakeholders are the shareholders, management, and the board of directors. Other stakeholders include labor(employees), customers, creditors (e.g., banks, bond holders), suppliers, regulators, and the community at large. These are some definitions given under the Corporate governance; The simple meaning of the Corporate governance is the relationship between corporate managers, directors and the providers of equity, people and institutions who save and invest their capital to earn a return. It ensures that the board of directors is accountable for the pursuit of corporate objectives and that the corporation itself conforms to the law and regulations. - International Chamber of Commerce "Corporate Governance is concerned with holding the balance between economic and social goals and between individual and communal goals. The corporate governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations and society “ "-(Sir Adrian Cadbury in 'Global Corporate Governance Forum', World...
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...Riordan Manufacturing Corporate Compliance Plan LAW 531 – Business Law Facilitator: Gregory Schumacher March 30, 2009 University of Phoenix – Online Campus Riordan Manufacturing Corporate Compliance Plan Riordan Manufacturing, Inc. has been an industry leader in the plastics molding industry for nearly 20 years, and its success has been built on a formula of state-of-the-art research and development, strong customer relationships, and innovative, team-oriented employees. The current economic environment, state and federal regulations, and legislative statues present challenges to Riordan that require implementation of strong methods for organizing risk management responsibilities and activities. To achieve business objectives and continued competitive advantages, Riordan must structure risk management responsibilities and activities using a formalized process. The Enterprise Risk Management (ERM) process will ensure identified risks are properly assessed, controlled, and monitored throughout the company to reduce Riordan’s exposure to legal liabilities. This compliance plan outlines the ERM process for Riordan following the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework recommendations on critical aspects of organizational governance, business ethics, internal control, enterprise risk management, fraud, and financial reporting. Enterprise risk management deals with risks and opportunities that affect business value, negatively or positively...
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...public that are required to be registered with the Commission, or (b) have assets in excess of Fifty Million Pesos and at least two hundred (200) stockholders who own at least one hundred (100) shares each of equity securities, or (c) whose equity securities are listed on an Exchange; or (d) are grantees of secondary licenses from the Commission. Article 1: Definition of Terms a) Corporate Governance – the framework of rules, systems and processes in the corporation that governs the performance by the Board of Directors and Management of their respective duties and responsibilities to the stockholders; b) Board of Directors – the governing body elected by the stockholders that exercises the corporate powers of a corporation, conducts all its business and controls its properties; c) Exchange – an organized market place or facility that brings together buyers and sellers, and executes trades of securities and/or commodities; d) Management – the body given the authority by the Board of Directors to implement the policies it has laid down in the conduct of the business of the corporation; e) Independent director – a person who, apart from his fees and shareholdings, is independent of management and free from any business or other...
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...Course Title: Accounting Information Systems Course Code: ACC - 406 Course Instructor: Mohammed Sakhawat Hossain Assistant Professor, Faculty of Business & Economics, DIU Group… Assignment on INTERNAL CONTROL & COMPLIANCE FRAMEWORK FOR INTERNAL CONTROL SYSTEMS IN AB BANK Submitted to Mohammed Sakhawat Hossain Assistant Professor Faculty of Business & Economics Daffodil International University Submitted by Group Name: Group…….. Sec: A Batch: 22nd Program: BBA Faculty: Business & economics Daffodil International University ABOUT OUR GROUP ❖ Group Name: ……. ❖ Sec : A ❖ Batch : 22nd ❖ Program : BBA ❖ Faculty: Business & Economics ❖ Group member | | | | | |S:N: |NAME |ID |REMARK | | | | | | |01 |Soma Das |091-11-678 | | | | | | | |02 |Riza Ul Karim...
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...Governance Practices By Axis Bank Ltd, India | 05-13 | Corporate Governance Practices by National Australia Bank, NAB | 13-18 | Corporate Governance By HSBC, London | 19-23 | Conclusion | 23 | Reference | 23 | Introduction: The issue of corporate governance has come up mainly in the wake up economic reforms characterized by liberalization and deregulation. Corporate governance has at its backbone a set of transparent relationships between an institution’s management its board, shareholders and other stakeholders. Corporate governance has come up mainly in the wake up of economic reforms characterized by liberalization and deregulation. According to OECD, the corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and other stakeholders and it also spells out the rules and procedures for making decisions on corporate affairs. Corporate governance is exclusively of board of directors in a manner that it becomes a way of organizational life and not merely written rules or regulations or code of ethics. Ethics and transparency are cardinals of corporate...
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