Corporate Accountability Assignment

You are required to submit a hard copy to the program administrator and an e copy to the drop box on the NOW system. The e version will be subjected to analysis by plagiarism software. 

Weighting:  100%

Word length:  4000 words (a margin of 10% is allowed)

Across the globe governments have been stunned by the increasing number of financial, environmental and ethical scandals involving major international companies.  These range from major fraud perpetrated by directors involving the financial collapse of companies, the excess risks taken within the financial sector, illegal payments to Government officials in Third world countries, abuse of human rights within the supply chain, and a total disregard in complying with general environmental management issues.  Each new day brings a new scandal so this list can only be indicative.

The UK Government has responded by asking the Department for Business Innovation and Skills (DBIS) to review the legal and self regulatory framework within which companies operate when trading from and within the UK.  Industry commentators fear that the general principle of “comply or explain” enshrined within the UK Corporate Governance Code 2010, is under threat and may be replaced by a new wide ranging Companies Act backed by severe penalties for company’s and individuals who are in breach of the act.

As a prelude to amending the Companies Act the DBIS  has called a conference which will be attended by country representatives from all sectors of business, pressure groups, charities, regulatory bodies and professional groups of which the Accountancy profession is represented by members from the International Accounting Standards Board,  and a representative from each of the major Accounting Performance firms.

You are one of a group of junior civil servants at the DBIS who have been tasked to research a particular country (NOT THE UK, you have previously been involved with and to produce a paper for the Minister so they are briefed and ready for the  conference.

Your paper should be in two parts and include the following information:

a)     Demonstrate to the Minister the particular problems faced by your country by the use of recent news items which have brought to light a particular example of bad practice which society no longer wishes to tolerate.  Propose how the country could, via the application of ethical principles and ethical decision making, avoid similar issues in the future,  and still be able to balance the competing demands of meeting the narrow needs of shareholders and the broader needs of society. (50%)

b)      A critical analysis and evaluation of the current position each of the relevant participant groups mentioned above, have taken towards the current practice of Corporate Governance and the broader issues of Accountability to society.

c)        Give possible scenarios that the Minister can put to the government to satisfy all stakeholders regarding Corporate Governance and Accountability. (50%)