Corporate governance Coursework Example | Topics and Well Written Essays - 1000 words - 1

Corporate governance - Coursework Example Cadbury Report highlights the role of Chairman and Chief Executive Officer. The Chairman must not be allowed to become CEO and the same is applicable to the vice versa at the same. The Chairman is primarily responsible for the board’s working, and for its membership balance subject to board and approval of shareholders (ecgi, web). The Greenbury report focuses on the directors’ remuneration (icaew). The fundamental aim of this report is to identify good practice in identifying and determining directors’ remuneration; besides reporting a code of practice for UK PLCs. The Hampel report was designed to review the Cadbury report on corporate governance. Basically, this report enumerates all the elements discussed in the Cadbury report; this report talks about the role of directors and shareholders, directors’ remuneration, accountability and audit (ecgi, web). The Turnbull report talks about the internal controls. As the internal controls are the significant e lements of the corporate governance, the Turnbull report describes the significance and elements of a sound system of internal control (portal. survey, web). The Higgs Review puts light on the role of non-executive directors (national archieves, web). In this report, besides considerably stipulating the significance of the role of non-executive directors, the much emphasis is also placed on the effective role of non-executive directors. 2- Discuss the difference between the principles –based approach and the rules-based approach and highlight the advantages and disadvantages of each for the practice of corporate governance. Answer The principles-based approach is applied in UK; on the other hand, the rules-based approach is applied in United States of America. The principles-based approach is based on the concept of â€Å"comply or explain approach.† Under this approach, a company is either to comply with the requirements mentioned in the framework or to explain a deci sion of non-compliance. On the other hand, a US corporation cannot avail this option; it has to comply with the requirements of the framework issued by the Securities and Exchange Commission. The principles-based approach is mostly driven by the market forces. As a result, if a company wants to avoid complying with the corporate governance Codes, and additionally if the company has valid reason to do so, this can increase the chances for more investment, which will generate more employment opportunities. The disadvantage of this approach is that if the UK government or a regulatory authority wants to enforce certain corporate practices, it may not be easy for them to do so. The major of advantage of rules-based approach is that a company will find it difficult to circumvent the unpleasant rules. As a result, this approach considerably reduces the chances of mal-corporate practices. In addition, investors knowing corporate governance structure of a company; would not avoid investing further into the company as their confidence level has considerably improved after the implementation of the rules-based approach. However, some disadvantages cannot be avoided. The rules-based approach are mandatory to be followed, some companies may avoid investing in the United States of America as there are inflexible corporate rules. In addition, existing companies may disinvest due to the presence of such rigid rules. 3-What is board effectiveness? Discuss how this can be achieved for UK firms. Use

Economics Essay Example | Topics and Well Written Essays - 750 words - 2

Economics - Essay Example This way corn serves a two-way purpose and that will definitely increase its demand. Corn and soybean are considered as substitutes and according to economic theory if demand for a product raises then the demand for its substitute will obviously decline. Following this principle the price of the soybean will decline. Again corn and soybean shares the same habitat for production, especially the prime raw material for any agricultural production the land. Now an increased demand for corn will also lead to a higher price for the same, since price and demand are directly correlated. A product that is offering higher price will definitely translate into higher profit for the producer and an immediate shift from production of soybean to that of corn. Higher percentage of land and effort will now be directed towards corn production than that of soybean (Pearce, 2006). The above discussion seems economically sound, however a careful investigation might reveal that this holds for short run. O nce the producer starts to devote more land and other raw materials to the production of corn, corn production will rise and production of soybean will fall. Hence in long run owing to higher supply of corn its price will come down and that of soybean will go up as it is scarce now. These points to the fact that in long run an eventual equilibrium will be reached where both will be produced at an optimum level for the economy. Last but not the least since, energy has an ever increasing demand, hence if corn can project itself as a viable source of alternative energy in long run that have enough potential to replace fossil fuels then the trend for substituting soybean production land and raw material in favor of the corn might show a sustained trend, with soybean production looking for an alternative way as itself is a nutritious and valuable food source along with a rich source for food oil. It is obvious that since there is high need of alternative form of energy and that especiall y of bio fuel; corn oil as an important source of bio fuel will enjoy this boom in demand and price for this product will go up. The magnitude of this rise in price is subject to much debate. First of all if demand for a product is matched by its supply then the rise in price is minimal or zero. However if this is not the scenario that is there is excess demand then the price will go up. Interestingly it is worth noting that in case of excess supply the price might also go down even courting a rise in demand for the concerned product. The excess supply often follows a rise in demand owing to the behavioural pattern of the producer who might over estimate the rise in demand and increase his supply of corn in tune of his expectations. Apart from this demand-supply interaction, many other factors do operate while determining the fate of the corn oil. If people are well aware of the potential that corn oil holds as a fuel and alternative source of energy that will definitely translate i nto higher demand. Again this has to be also undertaken into the realm of analysis that whether any other form of substitutes to corn oil does exist, that might be cheaper, easily available in plenty and better source of energy. As a viable source of alternative energy in the long run corn oil will face quite a competition with Jatropha and Pongamia pinnata (Bridgewater, Halford and Karp, 2010, p. 236) and that outcome will