Corporate Governance Issues and Media's Role: Credit Suisse Case Study

This report analyzes the Credit Suisse spying scandal, focusing on corporate governance issues. The report summarizes the article discussing the regulator's probe into the board's role, highlighting potential management control failures and the role of FINMA. It emphasizes the importance of media reporting on corporate governance, particularly regarding capital allocation and the influence of managers' reputations. The report then discusses corporate governance issues, including conflicts of interest, oversight, accountability, and transparency. It also explores the importance of corporate governance in changing ownership structures, social responsibility, and managing scams, takeovers, and mergers. The report concludes by offering an opinion on the corporate governance issues raised in the article, emphasizing the impact on ownership structure, shareholder involvement, and adherence to foreign regulations within the global market.

Running Head: Corporate Governance
Corporate Governance
Name of the Student:
Name of the University:
Author’s Note

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Outline and summarize the arguments mentioned in the article.
In the article “Regulator probes board role in Credit Suisse spying scandal” states
about the marketing supervisors is analyzing the credit suisse’s overnight for the chief
executive Tidjane Thiam and one of this senior team members who was probe into the
corporate espionage (Morehead and Schipani 2018). It is with the help of FINMA who was
looking after the management control and is leading the second largest bank for the two
former employee of the organization. It is completely depended on the investigation of
FIMNA who had issued credit Suisse to overhaul its leadership that also includes acceptance
of both the employee. No conclusion could be drawn as the probe had made the decision at an
early stage. The investigation team will contribute its effort in finding an independent audit
which is not enforcement (Tricker and Tricker 2015.). However it is the chief operating
officer, Bouee who is a long time confidant of the chief executive who also initiated the solo
run. Therefore there was a part of inquiry which had made its investigation on the board and
gave Thiam free leash to run a depository within the same bank where the citizens had said
that the characterization is of a bank inside a bank was ridiculous. The chairman and the
board of directors both had a regular and open discussion with the stakeholders and CEO
based on the activities and the operation of the bank. On the other hand there was credit
Suisse which mounted a legal challenge if FIMNA would had ordered to take measures in
disagree with the third person who was involved (Armstrong et al, 2015). On an instance
there were few of the decisions which were appealed and included the court to rule and
reconsider its confession of 95 million Swiss francs from a small bank.

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Why is it important/interesting/relevant for the media to report on these arguments?
It is important for the media to be indulged in the aspect of the corporate governance
because in an open market the economy is guided by a single market which caters to play a
significant role in collection of the capital. However the process of the media can also play a
role and perhaps it is positive and sometimes caters to be negative in guiding the managers in
creation of capital allocation. The media collection comprises of the amplifying, aggregate
and disseminates information which was extended by the information and the effects of the
managers’ reputation. However the proposal to the managers tends to be sensitive whether
the media can report on all the decisions made by the management. Therefore it is important
for the media to report on the basis of the article because it brings out much evidence to the
people who are investigation on the bank issues. The team of media players caters to various
norms and ideas that help in making the research more clear and precise. The media plays a
significant role in order to investigate and examine the case of both the chief heads of the
management there can be emergence of positive situation when the media involves
themselves in an incident or event (Yermack 2017). The media sources like magazine,
newspaper and other sources which contain the case of the bank and people get an
opportunity to read. Many people get an opportunity to read and examine the case which
helps them to gather feedback and ideas. The corporate are sensitive to the public news and
the media makes an effort to make one specified type of capital.
Discuss the corporate governance issues and their importance.
Corporate supremacy can be termed to describe the balance between the participants
and the corporate structure that has an interest in catering the ways in which the corporate can
run (Lebedeva et al, 2016). However it includes the staffs, members of the community and
shareholders. The corporate governance comprises both the issues and the importance which

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creates a huge impact on the organization. Some of the issues faced in corporate governance
are:
Conflict of interest: it is important for the management to avoid the conflict of interest which
falls within the framework of the cooperate governance when an officer controls the members
of the organization. On the other hand there might be instance of issues faced in the financial
attention that can affect in a straight line with the objectives of the cooperative (Lau, Lu and
Liang 2016). For instance with the help of an example taken from the board member of a
solar company is also a shareholder in the oil manufacturing company has a conflict to
develop cleaner environment.
Oversight issues: it requires the management to be substantial over the company’s producers
and practice (Lupu 2015). However the board of directors can encompass the executive
workers and report to the board. On the other hand the executive can be aware of the daily
operations that take place in the organization and cater the ways the objectives can be
achieved.
Accountability issues: in case of accountability it is necessary for the effective workers in
participating in corporate governance. Starting from the top level managers to the lower level
workers, each of the department should report and must be held accountable towards the
system. However it should be held accountable to both the public and shareholders of the
organization.
Transparency: in order to be transparent the company must tend to be more accurate and
report to the profit and losses and adequately make the figures available to the stakeholders
who invest in the company (Lupu 2015). The profits and the losses can affect and damage the
company’s relationship with the shareholders who are entitled to invest under the false

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pretense. However a lack of transparency can cause the company to fine from the regulatory
agencies.
On the other hand the importance of corporate governance can be stated on ensuring
the fact that there is enough open door policy of communication and the lower level of
managers should not hesitate to communicate with the managers or directors. The attributes
of corporate governance affects the risk and value of the corporation. However it is important
to increase the accountability of the company and avoider the massive disaster before they
can occur. Therefore the following are some of the points which highlight the importance of
corporate governance:
Changing the ownership structure: with the progression of the technology the ownership
structure of the organization has also changed in the recent years. There is more effective
forms of managerial activities which are delegated and the organization are forced to use
corporate governance (Soltani and Maupetit 2015). Thus this creates a pressure on the
management and it becomes more transparent, effective and accountable.
Importance of social responsibility: today the social corporate responsibility is given a lot of
significance however it is the accountability for the board of directors to protect the fright of
the employees, customers, stakeholders, supplies and local communities (Soltani and
Maupetit 2015). This is possible only through the application of corporate governance.
Growing number of scams: with the emergence of frauds there is also the presence of scams
and corrupt practices which takes place. The misuse and misappropriate of public money can
hamper it every day all throughout the world (Soltani and Maupetit 2015). In order to avoid
such issues these financial regulation must be looked after by introducing corporate
governance in the organizations.

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Takeovers and mergers: there are many stakeholders who take over the companies or in
some instance also merge with other existing companies. With the assistance of the corporate
governance it requires to protect the interest of the stakeholders during merge and takeovers.
Conclude by providing your opinion about the corporate governance issues raised in the
article.
The corporate governance issue which can be analyzed in the article is related to the
changing the ownership because there were two chief executives who had eminent role in the
organization and was caught in the case of fraud. However it can be related with the issue of
ownership because with the help of corporate governance, the organization must have put
certain charges and pressure to become more effective and efficient in managing the job role
in their work place. On the second instance the issues can be analyzed that there was a case of
indifference between the parts of the shareholders because there were inactive in the
management and could only attend the annual meetings (Zuckweiler, Rosacker and Hayes
2016). Postal ballot is still absent in some of the organization and the case of proxies are not
allowed to talk and discuss in the meetings. Therefore the directors of the bank are need of
the corporate governance in arrange to protect the shareholders of the branch. On the other
hand the third issue which can be analyzed that the organization are selling its services to the
global market and they attract the foreign investors and foreign consumers who can avail to
such benefits. They have to make it a point of conducting their rules and regulation and all of
this acquires foreign rules and regulation which is based on the federal law of the country.
These policies can be achieved with the assist of corporate governance and it is impossible to
enter the global market.

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Reference
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