Corporate Governance

Interim Assessment – Report Due: Thursday 22 November 2018 Weighting: 35% of total grade Format: 2200 critical review Background Below is your interim assignment for this subject. Please read the brief and instructions thoroughly. An ongoing debate in practice and academia is the control executive directors have on a board and in an organisation. Some reports, either in the media or from peak body organisations and associations discuss the corporate governance roles executive directors bring to an organisation, while others point to the fact that they may have some ownership and therefore are actively aligned with shareholders’ interests to maximize shareholder wealth (e.g. AICD 2018, 2017, 2016; Riaz & Kirkbride 2017). The following newspaper article is an example of the current discussion in Australia since the Hayne (Banking) Royal Commission began about executive directors (i.e. and non-executive directors) that could assist you in undertaking this interim assessment (Doherty 2018). Doherty, B 2018, ‘AMP’s three female non-executive directors to step down’, The Guardian, viewed 14 August 2018. Conduct a review of executive directors as a corporate governance issue and write a report about your findings. Use the concepts, tools and techniques learned in this subject to review these issues at the individual, board, organisation and/or other levels. These focus questions could guide you in writing your report: How are some organisations able to successfully align executive directors with the organisation’s objectives to maximise shareholder wealth via organisational performance? Discuss what has led to the success and or limitations of executive directors (e.g. short-term and long-term tenures, subcommittee(s), oversight, board control, diversity, risk management, corporate social responsibility initiatives or information asymmetry, etc.). What are some of the corporate governance issues that lead to organisations being criticised or being less successful in aligning executive directors with organisations objectives to maximise shareholder wealth via organisational performance, particularly when large losses or small profits occur? Discuss the reasons for this and what can be done to address them. Requirements Your assessment must include: A description of executive directors as a corporate governance issue. An outline of the bases or criteria for the review of executive directors and organisational performance governance issue(s). For example, mention which rules, standards or guiding principles are relevant for the review, discuss their importance and why it is appropriate for you to use them. A critical review of the organisation’s (i.e. or other level) governance applying the relevant concepts, principles, standards or other tools and techniques learnt during this subject. Recommendations for suggested improvement based on your review. It is important to demonstrate your knowledge of the corporate governance issue and to clearly reference your sources. Read about your issue in journal articles (i.e. using the AIB Online Library e.g. EBSCOHost, JSTOR), books (i.e. including the textbook), industry reports, business literature, etc. Remember to note down your sources and reference your sources in the report. To do well you need to structure your discussion appropriately, use credible source references, and clearly link recommendations to the description and analysis presented earlier in the report. Assessment requirements Requirements The required word length of this individual assessment is 2200 words (plus or minus 10%)