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Governance, Risk and Ethics Assignment

   

Added on  2020-07-22

20 Pages6776 Words110 Views
Governance, Risk and Ethics

Table of Contents1. INTRODUCTION.......................................................................................................................3Purpose of the study....................................................................................................................3Importance of the study..............................................................................................................3Structure of the study..................................................................................................................32. CONTEXT: BACKGROUND....................................................................................................3Organisational chart....................................................................................................................3Board of directors.......................................................................................................................4Committee...................................................................................................................................43. DESCRIPTION OF KEY EVENTS...........................................................................................5The reason behind choosing Burberry for this case study: ........................................................5Case Summary and Corporate Governance Issues ....................................................................5Main Theories Applicable to Burberry Corporation ..................................................................74 Main Corporate Governance issues..............................................................................................85. Corporate Governance theories.................................................................................................116. Response of Burberry to the Issues...........................................................................................137 Grenfell Tower was in fire months ago......................................................................................15General lesson learnt.....................................................................................................................15CONCLUSION ............................................................................................................................17REFERENCES .............................................................................................................................19What is agency theory? 2012[Online]. Availablethrough:<http://kfknowledgebank.kaplan.co.uk/KFKB/Wiki%20Pages/Agency%20theory.aspx> .....................................................................................................................20

1. INTRODUCTIONPurpose of the studyThe purpose of this study is to study the corporate governance related issues faced by theorganizations operating at a global level. For which, a well-known fashion company namedBurberry has been chosen. Corporate governance is considered as the comer-stone to anyeffective, ethical and accountable company and can be defined as the system which is consideredas the unit of balance and check, these are the internal and external forces of the company.Importance of the studyThis is important because in the international market, there are many organizations who facevarious kinds of issues regarding several business disasters and dilemmas. It is thereforeimportant to study the issues related to corporate governance and resolve in the best possibleway. Structure of the studyThis report is thus based upon the Governance, risk and ethics related issues that are usuallybeing faced by the chosen fashion company named Burberry. Burberry is the Luxury fashionhouse situated in London, it is very high end store who deals in very exclusive products for bothmen and women. It provides trench coats, ready to wear dresses, stylish accessories, sunglasses,cosmetics and many other products. The current study has firstly reviewed the background of theselected establishment by studying its organizational chart consisting of its board of members aswell as committee members. After which, it has described some key events that took place inBurberry with a special consideration of addressing its corporate governance related issues.Lastly, it has applied the theories with recommendation to deal with the identified problemsrelated to ethical concerns and corporate governance, etc. 2. CONTEXT: BACKGROUNDOrganisational chartOne case of particular interest is that of London, Luxury fashion house BurberryCooperation. The Board is effectively responsible for promoting long term success of Burberry,in 2017 the overall revenue of Burberry is recorded was 2.8 billion pounds approximately, was 2% down.

Board of directorsThe above organizational chart has depicted the board of directors in Burberry thatinvolves a chairman, a chief executive officer and a chief financial officer and operating officerat similar level. After which, there exists 2 non-executive directors and a senior independentdirector at another level. At the third level, there exists total 5 non-executive directorsresponsible for handling its operations at distinct regions. CommitteeBurberry’s committee is divided into 3 distinct sections with an audit committee handledby Jeremy Darroch, as the chairperson of this committee. It is with a responsibility of monitoringthe reliability of all sort of fiscal data. This is basically to ensure the Board about a regulated andcontinually reviewed system of risk management as well as internal control measures.Next is their remuneration committee handled by Orna Nichionna with a role of ensuring asuitable remuneration to the executive directors as well as other executives at senior level. Thisis basically to keep them driven towards submitting productive work and performing welltowards the achievement of company’s objectives on a set time period. Last is the nomination committee which is administered by Sir John Peace who isaccountable for balancing the alignment of both board and committee members along with theirwork. For this, it is important to supervise the necessities of sequential planning by framingeffective group strategies for positioning the group at a diversified level.

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