Corporate Governance, Business Ethics and Corporate Social Responsibility course

Introduction

The course aims to develop an understanding of the underlying concepts of Corporate Governance, business ethics and CSR which are relevant to the contemporary business environment. It is designed to foster participants understanding of the ethical influences on economic, financial, managerial, and environmental aspects of business. The course further aims to develop an ability to critically analyses ethical issues in organization. This course reviews different regulatory processes essential to the understanding of the principles of corporate governance.

Module 1: Introduction, Implementation and International Legislation

Some Basic Principles; the Level Playing Field

•          Role of the board
•          corporate governance
•          The international perspective - divergence or convergence

Corporate Governance – the Business Case

•          The rewards: a study of share performance metrics 
•          Corporate performance and boardroom practices - the link 
•          Benefits to the economy: The ‘corruption premium’ and the cost of accessing global capital 
•          Foreign direct investment; countering the vulnerability of short term capital flows 
•          Assessing governance in others

Good Corporate Governance and Emerging Markets

•          Why governance is essential in emerging markets 
•          Information asymmetries and inequalities 
•          The patterns of ownership in emerging markets; The protection of minority investors 
•          Convergence to the OECD norms?

Industry Specifics: Banks; Government Companies

•          Governance in banks - the agency problem; opaqueness, “rogue traders” 
•          The role of the bank in improving the governance of the corporate sector 
•          How poor governance can cause systemic financial crises
•          Case Study: Recent Financial Sector Governance Failures
•          State owned enterprises and corporations: governance issues

Legal and Regulatory Frameworks for Governance

•          Then legal responsibilities of directors 
•          Listing requirements: how capital markets impose corporate governance requirements: 
•          Corporate governance codes; recent regulatory trends in corporate governance 
•          How to develop a corporate governance code for your company 
•          Governance disclosures: governance as a competitive edges

Module 2: Ethics, Corporate Social Responsibility

Ethics and Culture: the Board’s Responsibility

•          Corporate structures for ethics 
•          Developing an Ethics Code 
•          The role of the “whistle blower”.; setting up internal hot-lines 
•          The place and principles of corporate social responsibility

Module 3: Boards, Directors and Board Committees

The Board – key Principles and Practicalities

•          Principles of independence and leadership 
•          Building the right working relationship between Board and management 
•          The Board’s responsibilities for: 
  - Management oversight 
  - Protection of stakeholders’ rights 
  - Disclosure and transparency 
  - The company’s strategy
•       Case Study: Where was the Board? Enron and other Catastrophic Board Failure 
  The Board’s Composition and Processes
•          Independent and non-executive directors 
•          Are independent directors the solution? 
•          New powers for non-executive directors, stiffer penalties for negligence 
•          Rule of engagement: defining the non-executive director 
•          How two-tier boards imbed ‘independence’ – sometimes at a cost 
•          Board meetings basics; information for directors

Board Committees – the Audit Committee

•          What are committees for? - rules and principles for committees. 
•          The role of the Audit Committee 
•          Audit Committee membership and expertise requirements; “financial literacy” requirements; processes and procedures 
•          Resources for Audit Committee members 
•          Relationships with internal and external auditors 
•          Managing changes in membership 
•          Structuring internal audit oversight, reviewing internal controls
•       Case Study: a failure of culture and internal controls 
  
  The Board – Nominations and Compensation
•          Board nominations: whom to appoint to the board? Sourcing directors 
•          Creating effective Board appraisals and assessments 
•          How the board should manage succession planning 
•          Setting pay and compensation in the company: basic principles 
•          Pay for performance – for board members?
•          Share ownership by directors – an alignment, or a conflict of interests? 
•          Executive pay: structuring the incentive 
•          How much should non-executive directors be paid? 
•          Recent controversies, and ‘best practice’ developments in compensation 
•          Remuneration disclosure 

Personalities on the Board

•          The role and duties of chairman of the board 
•          Leading the company/leading the board – chairman styles
•          Experience of the business? – needed for the chairman? 
•          The importance and developing role of the board secretary 
•          The secretary – a Corporate Governance professional 
•          Resources for the board secretary 
•          Board evaluations: questionnaire or interview?
•          Case study: Developing Effective Board Assessment Procedures - an Exercise in Tact
•          Maintaining directors’ effectiveness – structuring the job 
•          Director training

Governance and Risk – Responsibilities of Directors and Management

•          The oversight of risk; assigning responsibility in management 
•          The role of Chief Risk Officer; reporting line practices 
•          Modern systematic approaches to risk management, and tools for the Board 
•          Enterprise Risk Management for companies: the new discipline 
•          Extreme event management