MGNT909 Corporate Governance & Ethics: Dubai SME 100 Firm Analysis

This report provides an analysis of Nimai Management Consultant, a Dubai SME 100 company, focusing on its corporate governance and ethics framework. As a consultant, the existing framework is examined through the lens of the Nine Pillars of Good Corporate Governance, identifying capability gaps for improvement. The report highlights the company's strengths in adhering to ethical standards and following a proper corporate governance structure. Recommendations are offered to address the identified capability gaps, aiming to enhance the company's governance mechanism and overall performance. The analysis draws upon literature related to innovation in Dubai SMEs, the evolution of corporate governance in Dubai, and challenges related to workplace diversity and education in the UAE. The report concludes by emphasizing the importance of continuous improvement and adaptation in the dynamic business environment of Dubai.

Running head: CORPORATE GOVERNANCE AND ETHICS
CORPORATE GOVERNANCE AND ETHICS
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1CORPORATE GOVERNANCE AND ETHICS
Executive Summary
Corporate governance and corporate ethics are two essential elements of business in today’s
times. Corporate governance is the method in which a business will run whereas corporate ethics
are the ethical standards which must be followed in that context. In this paper corporate
governance of one of the companies that featured in top 100 rankings of Dubai SME 100 will be
analyzed in the role of a consultant, and capability gaps will be spotted. Recommendations which
will help in overcoming the capability gaps will be given with their possible outcomes.

2CORPORATE GOVERNANCE AND ETHICS
Table of Contents
Introduction....................................................................................................................................3
Literature Review..........................................................................................................................5
Analysis of Existing Framework from the Perspective of Nine Pillars of Good Corporate
Governance.....................................................................................................................................7
Capability Gaps for Improvement.............................................................................................10
Recommendations for filling the capability gaps and improving the governance mechanism
.......................................................................................................................................................11
Conclusion....................................................................................................................................13
References and Bibliography......................................................................................................14

3CORPORATE GOVERNANCE AND ETHICS
Introduction
The system of running a business with a set of rules, systems and processes and ensuring
proper decision making in within stipulated time is known as Corporate Governance1. The
system involves complicated procedures which ensures a smooth business and balancing interest
of all the stakeholders like the shareholders, clients, and employees. All the managerial aspects
of a company come under corporate governance and the board of directors are the final decision
makers.
Corporate ethics is the professional set of ethics and morals that guides the business in
the path of avoiding conflicts among different stakeholders2. All the individuals and the whole
organization is expected to follow corporate ethics. Standards, values and principles that keep
mal practices away from the business is corporate or business ethics.
Dubai SME 100 provides ranking to the Small and Medium Enterprises according to their
performance and potential. It was established by the “Mohammad Bin Rashid Establishment for
SME Development” or the MBRE. The rankings it provides are considered to be premiere and
highly trustworthy in the region3. The rankings not only recognize the strengths of the companies
but also helps in identification of capability gaps for improvement.
1 Tricker, RI Bob, and Robert Ian Tricker. Corporate governance: Principles, policies, and practices. Oxford
University Press, USA, 2015.
2 Srivastava, Juhi, and Rakesh Kumar Pandey. "Corporate ethics and social responsibility." 2016). International
perspectives on socio-economic development in the era of globalization. Hershey: Business Science
Reference (2016): 212-220.
3 Schilirò, Daniele. "Innovation in small and medium enterprises in the United Arab Emirates." Int'l J. Soc. Sci.
Stud. 3 (2015): 148.

4CORPORATE GOVERNANCE AND ETHICS
Nimai Management consultant has ranked 18th in the last rankings provided by the
company. It is working in the field of financial management and since its inception at 2009 has
grown in exponential rates. It has its offices in India and Bangladesh as well.
Figure 1: Rank 18th of Nimai Management Solutions4
In this paper the corporate governance framework of the company Nimai Management
Solution will be analyzed as a consultant and the capability gaps will be identified. After
identification of the capability gaps recommendations will be provided to develop their corporate
governance and ethics framework.
4 Dubaisme100.ae. "Dubai One Hundered SME". Dubaisme100.Ae. 2018. http://dubaisme100.ae/Default.aspx.

5CORPORATE GOVERNANCE AND ETHICS
Literature Review
Innovation
In the article "Environmental determinants of open innovation in Dubai SMEs” the
authors have pointed out that the government initiatives to support the SMEs through finance,
collaboration and knowledge sharing has helped the companies to increase their innovative
quotient5. A continuous innovation has been one of the basic strategies of Dubai’s business
environment. The government of the country is proactive in supporting the SMEs.
Daniele Schilero however points out that not just because of government help the
companies are innovating. To remain in the competitive market scenario of Dubai the SME
companies have to adapt a very innovative business model otherwise they would not be able to
survive in the highly competitive scenario.6 The country is one of the prime destinations of
investment in the middle east.
Corporate Governance
In “"Dubai as Metaphor: Corporate Entity, Global City, Hope and Mirage” the authors
point out the evolution of Dubai in the corporate sector and how corporate governance has
become an important part of every business7. People looking for work are coming from all over
the world in this country.
5 Pervan, Simon, Yahya Al-Ansaari, and Jun Xu. "Environmental determinants of open innovation in Dubai
SMEs." Industrial Marketing Management 50 (2015): 60-68.
6 Schilirò, Daniele. "Innovation in small and medium enterprises in the United Arab Emirates." Int'l J. Soc. Sci.
Stud. 3 (2015): 148.
7 Kathiravelu, Laavanya. "Dubai as Metaphor: Corporate Entity, Global City, Hope and Mirage." In Migrant Dubai,
pp. 28-56. Palgrave Macmillan, London, 2016.

6CORPORATE GOVERNANCE AND ETHICS
Knowledge as an “organizational resource” is the most effective tool for innovation,
globalization and improving organizational culture. According to the article “"Influence of
organizational culture on knowledge transfer: Evidence from the Government of Dubai" every
organization in all context are giving more importance to knowledge management and Dubai is
not far8. The SMEs in the country are collaborating and sharing knowledge to improve the
overall business pattern of the country.
Problems
“The scope and impact of workplace diversity in the United Arab Emirates–A
preliminary study" the authors have mentioned that managing and maintaining workplace
diversity is one of the prime concerns of the business organisations in Dubai9. A large number of
workers travel from all over the world to UAE, they belong from diverse culture.
The article “"Educational Leadership: Challenges in United Arab Emirates" points out
that United Arab Emirates is striving to reform the educational system of the country in order
strengthen the countries entry into the global economic scenario10. The education system still
lacks modernity and international curriculum.
8 Rahman, Mohammad Habibur, Immanuel Azaad Moonesar, Md Munir Hossain, and Md Zahidul Islam. "Influence
of organizational culture on knowledge transfer: Evidence from the Government of Dubai." Journal of Public
Affairs 18, no. 1 (2018).
9 Al-Jenaibi, Badreya. "The scope and impact of workplace diversity in the United Arab Emirates–A preliminary
study." Geografia-Malaysian Journal of Society and Space 8, no. 1 (2017).
10 Zahran, Reham, Lincoln D. Pettaway, and Sharon Waller. "Educational Leadership: Challenges in United Arab
Emirates." Educational Leadership 5, no. 1 (2016).

7CORPORATE GOVERNANCE AND ETHICS
Analysis of Existing Framework from the Perspective of Nine Pillars of Good Corporate
Governance
Nine Pillars of Good Governance
The “Mohammad Bin Rashid Establishment for SME Development” has formed a code
for the SME (Small and Medium Scale Enterprise) companies in Dubai11. These have been
formed by the collaboration of Dubai SME and Hawkamah. It is aimed at establishing a
framework or benchmark for the Small and Medium Scale Enterprises to follow.
The nine codes also known as the “Nine Pillars” are:-
1. “Receiving a formal corporate administration system delineating the parts of the
key bodies, for example, accomplices, investors, governing body and
administration” – the structure ought to mirror the SME's esteems and the desires
of its proprietors and key partners.
2. “Directing a progression process” – each SME ought to have a progression
arrangement that enables the organization to create and encourage an
administration change in a dynamic, arranged and non-problematic way. This is
especially important for developing and privately-run company.
3. Setting up a “straightforward and accurate supply of information with investors”.
4. “Setting up a formal Board of Directors to go with the development of the
organization” – The setup of a board is perceived as the foundation of good
corporate administration in organizations12.
11 Khaleejtimes.com. 2013. "Corporate Governance Crucial For Businesses". Khaleejtimes.Com.
https://www.khaleejtimes.com/article/20131027/ARTICLE/310279951/1037.
12 Tradearabia.com. 2011. "New Corporate Governance Code For Smes". Tradearabia.Com.
http://www.tradearabia.com/news/ECO_205571.html.

8CORPORATE GOVERNANCE AND ETHICS
5. “Building up an unmistakable set of rules for the Board of Directors to manage
the operational execution of the business and also assessing and enhancing
business methodologies” - the Board order and targets should reflect the business
objectives.
6. Maintain accounts ledger in a trustworthy manner, which is reviewed yearly by an
outside auditor.
7. “Establishing an interior control structure and directing a customary audit of risk”
– having sufficient inward control systems is perceived as an essential for an ideal
business.
8. “Perceiving and understanding the necessities of partners and stakeholders” –
partners incorporate workers, clients, suppliers, lenders and anyone who impacts
or gets impacted by the business” – as family possessed organizations shape a
critical piece of the Small and Medium Enterprises in Dubai, the code of
corporate governance incorporates a particular area on corporate administration
for family-claimed organizations
Analysis of existing Framework
The company chosen called Nimai Consultancy or Nimai Management consultant, is
mainly a consultancy firm that provides assistance and advices for fields like corporate finance,
investments, new banking services and trade finances. The company has explicitly stated its
position that it aims to become the first choice in financial consultancy purely based on the
superior quality of service it provides13. In its core values the firm has included “integrity and
13 Consultnimai.com. 2018. "Nimai » Our Philosophy". Consultnimai.Com. http://consultnimai.com/our-philosophy/.

9CORPORATE GOVERNANCE AND ETHICS
strong professional ethics”. The company prides on providing honest and truthful consultancy to
the clients and ensure that the information is kept confidential.
The principles that the company follows to drive itself nearer to the organization
objective are, to give complete importance on “People, Associates and Partners”. The company
believes in respecting all the stakeholders and striving for improvement of all the people who are
directly or indirectly associated with the company14. The environment must be conducive of
people and trust, honesty and transparency are the pillars on which the organization will stand.
The company believes in making leaders out of its employees through continuous training and
participation. Eliminating or reducing all the aspects and factors that hamper productivity is also
important for the company. Continuous improvement through learning and reflection is the
standard practice of Nimai Management Consultancy. The company with its ethical and strong
strategic business model is successful in gathering clients not only in Dubai but also in Kenya,
India and some other countries. The company also has some corporate social responsibility
activities in order to give back to the society some much needed help15.
It is evident from the above study of the “9 pillars of corporate governance” and the plan
strategy and business model of Nimai management corporation that the company follows most of
the codes that has been elaborated, from strictly adhering to the ethical standards to following a
proper corporate governance structure, everything is as per the codes of the “9 pillars”. The
company has a well detailed plan strategy for the improvement of all its stakeholders, the
company is very strict at providing authentic and honest information about its financialhealth to
14 Consultnimai.com. 2018. "Nimai » Our Philosophy". Consultnimai.Com. http://consultnimai.com/our-philosophy/.
15 Katsioloudes, Marios I., and Tor Brodtkorb. "Corporate social responsibility: an exploratory study in the United
Arab Emirates." SAM Advanced Management Journal 72, no. 4 (2007): 9.

10CORPORATE GOVERNANCE AND ETHICS
its stakeholders. There is a risk strategy in place, risk strategy are the plans that steer the
company out of any financial danger when there is a situational need16.
Capability Gaps for Improvement
Capability gap is the powerlessness to execute a predefined strategy. The capability gap
might be the after effect of no current capacity, absence of capability or adequacy in a current
ability arrangement, or the need to supplant a current capacity answer for keeping away a future
capability gap17.
These capability gaps can exist because of numerous reasons, for example,
 Absence of information or aptitudes.
 Inefficient assets.
 Consistent innovative changes.
 Unclearness of Company's objectives and targets.
 Deficiency of operational and administration ability.
 Absence of preparing and advancement or absence of money related assets to subsidize
the preparation programs.
These capability gaps can likewise exist because of an absence of capacity to associate, maintain
and scale up the current abilities and necessities to the business objectives by giving the correct
sort of condition.
The capability gaps of this company are few but needs to be taken care of very soon so
that the company may prosper in its field of business. The primary capability gap is the
16 Sadgrove, Kit. The complete guide to business risk management. Routledge, 2016.
17 Worch, Hagen, Bernhard Truffer, Mundia Kabinga, Anton Eberhard, and Jochen Markard. "A capability
perspective on performance deficiencies in utility firms." Utilities Policy 25 (2013): 1-9.

11CORPORATE GOVERNANCE AND ETHICS
deficiency in innovative changes. The company still operates on a technology that is traditional
form of financial analysis. The western countries have brought a revolution in the way financial
analysis and consultancy is done. Advanced software and techniques like KPI or Key
Performance Indicator are used in the industry. Nimai management consultant has not yet
completely transformed and revolutionized its information technology and software interfaces.
The website of the company is not very advanced in its look and feel. The company needs to
work towards developing its website and the software it uses to do the financial analysis of the
clients.
The company has clear targets and objectives, but a gap lies in the fact that though the
company is expanding into new countries there is not proper leadership in the new areas where
the company is expanding. The new areas and countries like India and Kenya needs to be
focused by the top management of the company in Dubai. The leadership and regional
management in these countries needs to be sharpened and prepared so that the business expands
properly and the company earns some much needed goodwill in the new target market.
Recommendations for filling the capability gaps and improving the governance mechanism
The primary two capability gaps that has been discovered in the company are the
technological lapses that it faces in its website or the software it uses to analyse the financial data
provided by the clients.
The approach to financial risk management must be “Multiple Models Approach”. This
will delignate eloquently the gaps in one approach and clarify properly that which model can be
used perfectly with a particular client in a particular situation18. One of the emerging fields of
18 Van Deventer, Donald R., Kenji Imai, and Mark Mesler. Advanced financial risk management: tools and
techniques for integrated credit risk and interest rate risk management. John Wiley & Sons, 2013.

12CORPORATE GOVERNANCE AND ETHICS
study in this respect is the field of Business Intelligence or BI 19. The two institutions “Special
Interest Group on Decision Support, Knowledge and Data Management System” and the
“Teradata University Network” arranged the “Business Intelligence Congress 3” where several
key players of the field pointed out that Business Intelligence and Advanced Business analysis
are two key areas of innovation in the business organisations20. The company must adopt to these
practices.
The capability gap of leadership and management in place in the new countries and
regions where the business is expanding can be rectified by following the decentralisation model
of business. Market segmentation analysis in the target countries at the primary stage is
important, and doing a “service gap analysis” to understand what are the existing services in the
same field in the target countries21. The business leadership can be developed according to the
findings of the research. The top management of the company must empower the regional
management of the company in all these countries, and aim at expanding business in new
countries. The fulfilment of the capability gaps will result in better business and productivity of
the company.
Apart from these the company already has a very open and transparent business model
guided by ethics. Another recommendation would be to publish a yearly house journal that will
delineate the financial position and health of the company in a more transparent way.
19 Sharda, Ramesh, Dursun Delen, and Efraim Turban. Business intelligence: a managerial perspective on analytics.
Prentice Hall Press, 2013.
20 Wixom, Barbara, Thilini Ariyachandra, David E. Douglas, Michael Goul, Babita Gupta, Lakshmi S. Iyer, Uday R.
Kulkarni, John G. Mooney, Gloria E. Phillips-Wren, and Ozgur Turetken. "The current state of business intelligence
in academia: The arrival of big data." CAIS 34 (2014): 1.
21 Evans, Michael. 2015. "10 Key Steps To Expanding Your Business Globally". Forbes.Com.
https://www.forbes.com/sites/allbusiness/2015/03/04/10-key-steps-to-expanding-your-business-globally/
#22eb204b3803.

13CORPORATE GOVERNANCE AND ETHICS
Conclusion
In the above study it is seen that innovation is one of the foremost aspect of consideration
in doing business in Dubai and the region. Not just because of government help the companies
are innovating. To remain in the competitive market scenario of Dubai the SME companies have
to adapt a very innovative business model otherwise they would not be able to survive in the
highly competitive scenario. In Dubai every organization in all context are giving more
importance to knowledge management.
Dubai SME 100 provides rankings to the top performers in the Small and Medium
Enterprises in United Arab Emirates. The organization has given 18th rank to Nimai Management
Consultancy. As a consultant a detailed analysis of their present business model is done in the
light of “9 pillars of corporate governance”. It is found that the company follows most of the
codes of conduct described there.
However close study has found some capability gaps in the business model and strategy
of the company which includes a weak technological support and not very strong overseas
management. The recommendations of bringing in new technology like the “Multiple Models
Approach” and Business Intelligence and Advanced Business analysis will help the company to
reduce risk and increase productivity in the business.

14CORPORATE GOVERNANCE AND ETHICS
References and Bibliography
Al-Jenaibi, Badreya. "The scope and impact of workplace diversity in the United Arab Emirates–
A preliminary study." Geografia-Malaysian Journal of Society and Space 8, no. 1 (2017).
Consultnimai.com. 2018. "Nimai » Our Philosophy". Consultnimai.Com.
http://consultnimai.com/our-philosophy/.
Dubaisme100.ae. "Dubai One Hundered SME". Dubaisme100.Ae. 2018.
http://dubaisme100.ae/Default.aspx.
Evans, Michael. 2015. "10 Key Steps to Expanding Your Business Globally". Forbes.Com.
https://www.forbes.com/sites/allbusiness/2015/03/04/10-key-steps-to-expanding-your-business-
globally/#22eb204b3803.
Kathiravelu, Laavanya. "Dubai as Metaphor: Corporate Entity, Global City, Hope and Mirage."
In Migrant Dubai, pp. 28-56. Palgrave Macmillan, London, 2016.
Katsioloudes, Marios I., and Tor Brodtkorb. "Corporate social responsibility: an exploratory
study in the United Arab Emirates." SAM Advanced Management Journal 72, no. 4 (2007): 9.
Khaleejtimes.com. 2013. "Corporate Governance Crucial For Businesses". Khaleejtimes.Com.
https://www.khaleejtimes.com/article/20131027/ARTICLE/310279951/1037.
Pervan, Simon, Yahya Al-Ansaari, and Jun Xu. "Environmental determinants of open innovation
in Dubai SMEs." Industrial Marketing Management 50 (2015): 60-68.
Rahman, Mohammad Habibur, Immanuel Azaad Moonesar, Md Munir Hossain, and Md Zahidul
Islam. "Influence of organizational culture on knowledge transfer: Evidence from the
Government of Dubai." Journal of Public Affairs 18, no. 1 (2018).

15CORPORATE GOVERNANCE AND ETHICS
Sadgrove, Kit. The complete guide to business risk management. Routledge, 2016.
Schilirò, Daniele. "Innovation in small and medium enterprises in the United Arab
Emirates." Int'l J. Soc. Sci. Stud. 3 (2015): 148.
Schilirò, Daniele. "Innovation in small and medium enterprises in the United Arab
Emirates." Int'l J. Soc. Sci. Stud. 3 (2015): 148.
Sharda, Ramesh, Dursun Delen, and Efraim Turban. Business intelligence: a managerial
perspective on analytics. Prentice Hall Press, 2013.
Srivastava, Juhi, and Rakesh Kumar Pandey. "Corporate ethics and social responsibility." 2016).
International perspectives on socio-economic development in the era of globalization. Hershey:
Business Science Reference (2016): 212-220.
Tradearabia.com. 2011. "New Corporate Governance Code for Smes". Tradearabia.Com.
http://www.tradearabia.com/news/ECO_205571.html.
Tricker, RI Bob, and Robert Ian Tricker. Corporate governance: Principles, policies, and
practices. Oxford University Press, USA, 2015.
Van Deventer, Donald R., Kenji Imai, and Mark Mesler. Advanced financial risk management:
tools and techniques for integrated credit risk and interest rate risk management. John Wiley &
Sons, 2013.
Wixom, Barbara, Thilini Ariyachandra, David E. Douglas, Michael Goul, Babita Gupta,
Lakshmi S. Iyer, Uday R. Kulkarni, John G. Mooney, Gloria E. Phillips-Wren, and Ozgur
Turetken. "The current state of business intelligence in academia: The arrival of big
data." CAIS 34 (2014): 1.

16CORPORATE GOVERNANCE AND ETHICS
Worch, Hagen, Bernhard Truffer, Mundia Kabinga, Anton Eberhard, and Jochen Markard. "A
capability perspective on performance deficiencies in utility firms." Utilities Policy 25 (2013): 1-
9.
Zahran, Reham, Lincoln D. Pettaway, and Sharon Waller. "Educational Leadership: Challenges
in United Arab Emirates." Educational Leadership 5, no. 1 (2016).