Organizational Governance Assignment 2022

Running Head: Organizational Governance 0
Organizatio
nal
Governanc
e
August 10
201
9

Organizational Governance 1
Table of Contents
Introduction......................................................................................................................................2
Question-1........................................................................................................................................2
Parmalat Scandal and its Major Failures.....................................................................................2
Three Failures of Governance.....................................................................................................3
Question-2........................................................................................................................................4
Mechanism that may assist the failure of Governance for Parmalat...........................................4
Question-3........................................................................................................................................4
Role of the committee..................................................................................................................4
Mechanism of Governance..........................................................................................................4
Conclusion.......................................................................................................................................5
Reference.........................................................................................................................................6

Organizational Governance 2
Introduction
This assignment is based upon the scandal of Parmalat which was the biggest scandal
happened over last 15 years. The assignment defines the failures of the management committee
due to which the scandal was going and they were unaware of it. Three failures of the
governance of parmalat are briefly explained in the assignment. In this assignment the action that
could be taken by the governance of the company through which the scandal can be identified
and stopped on time is also provided. For the good governance the importance or the value of
different members in the organization committee is briefly answered. The aim of the study is also
to understand the mechanism for implementing good governance in the organization.
Parmalat is multinational company focused in the dairy and food production. Today the
company is executing the operational work in Europe, North America, South America, Australia,
China and South Africa. In 2003 the company collapsed with the hole of 14 billion euro in their
accounts which was the biggest bankruptcy in history of Europe (Dănescu, Oncioiu, &
Spătăcean, 2019).
Question-1
Parmalat Scandal and its Major Failures
According to Solomon if this system was implemented in the process of company the
monitoring of structure and framework could perform easily. From the core entire monitoring
system of the company was rotten. The auditors and legal advisors of company allows the
management to conduct the fraud. Parmalat was the company owned by Tanzi family and due to
this reason there was lack of ethics in the resource of company. As a result for the personal gain
the chairman moved the funds of the company to the members of family and in their personal
business. When the research was conduct it was found that company has no any account in the
bank of America for which the auditor of company claimed for the confirmation of third party
(Camfferman, & Wielhouwer, 2019). This created a controversy amongst the directors and other
member of committee.