Tuesday, April 15, 2014

MS-495- Ethics and Corporate Governance in Banks


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Course Code                                      :                       MS-495
Course Title                                       :                       Ethics and Corporate Governance in Banks                                                                  
Assignment Code                             :                       MS-495/TMA/SEM-I/2014
Coverage                                           :                       All Blocks


Note : Attempt all the questions and submit this assignment on or before 30th April, 2014 to the coordinator of your study center.

1.     a)  What is conflict of interest and how is it different from ethical dilemma?
Answer : A conflict of interest (COI) occurs when an individual or organization is involved in multiple interests, one of which could possibly corrupt the motivation.

The presence of a conflict of interest is independent of the occurrence of impropriety. Therefore, a conflict of interest can be discovered and voluntarily defused before any corruption occurs. A widely used definition is: "A conflict of interest is a set of circumstances that creates a risk that professional judgement or actions regarding a primary interest will be unduly influenced by a secondary interest." Primary interest refers to the principal goals of the profession or activity, such as the protection of clients, the health of patients, the integrity



2.     a)  What are the challenges for implementing good corporate governance?

Answer : As corporate governance continues to be an area of focus for most companies, regardless of whether they are involved in global operations, there are many questions and issues that firms still struggle with:  What is good corporate governance and why is it so important? Why are so many firms and governments promoting improved techniques in corporate governance? What are those techniques and best practices and is there evidence that these reforms and policies are useful for firms in promoting transparency, sustainability and the confidence of global markets and investors?


Challenges for implementing good corporate governance :


b) How banks are different from other institutions in terms of corporate governance? Discuss.

Answer : Banks are special, so is corporate governance of banks. It differs considerably from general corporate governance. Specific corporate governance needs exist also for insurance companies and other financial institutions. This article, Better Governance of Financial Institutions, analyzes the economic, legal and comparative research on governance of financial institutions and covers the reforms by the European Commission, the European Banking Authority, CDR IV and Solvency II up to the end of 2012. External corporate governance, in particular by the market of corporate control (takeovers), is more important for firms than for banks, at least under continental European practice.


3.     What is Social Audit? Highlight the key principles guiding the social audit practices around the world.
Answer : Social audit as a term was used as far back as the 1950s. In a nutshell, it refers to the steps that are taken to ensure that the work done by the government is actually benefiting the people whom it is intended to benefit. It is based on the principle that the local governance should be carried out, as much as possible, with the consent and in complete understanding of the requirements of the people concerned. It is a process and not an event. Thus, Social Audit is nothing but understanding, measuring, reporting, and most importantly improving the efficiency and effectiveness of the local governance.




4.     a) How Corporate Social Responsibility (CSR) and strategy can be integrated?

Answer : Corporate Social Responsibility (CSR) is defined as the voluntary activities undertaken by a company to operate in an economic, social and environmentally sustainable manner.

What is Strategic Corporate Social Responsibility? By taking a strategic approach, companies can determine what activities they have the resources to devote to being socially responsible and can choose that which will strengthen their competitive advantage. By planning out CSR as part of a company’s over all plan, organizations can ensure that profits and increasing shareholder value don’t overshadow the need to behave ethically to their stakeholders.



5.     Suppose you are working in a bank what kind of social audit process should the bank perform and why?
Answer : Social audit is a review of a business entity's social activities to evaluate whether such activities benefit society or geographical regions in which the entity operates. An auditor evaluates a firm's operating environment, corporate policies and departmental guidelines to ensure that such policies comply with governmental mandates and regulatory requirements. An auditor also reviews amounts recorded as charitable contributions or social donations for accuracy.

Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :

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or
Call us at : 08263069601
(Prefer mailing. Call in emergency )


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