Chapter 5

Sir Adrian Cadbury

1992, led a committee on the new tropical issue of Corporate Governance.

Profitable

A commitment to good corporate governance can make a company

Comply Or Else

Companies to abide by a set of operating standards.

Explain

Comply or ______ (Cadbury Report)

Else

Comply or ______ (Sarbanes-Oxley Act)

Efficenitcy

Favor of merging the roles of chief executive officer snd the chairman of the board is

Trust

Fiduciary responsiblility of a manager is based on

Corporate Governance

Was the focus of the Cadbury report.

Comply/ Explain

__________ or _________

Corporate Governance

Responsible for monitoring the ethical business practice of an orginization.

King 2

Formally recognized the need to move the stakeholder model forward and to consider a triple bottom line instead of a single bottom line of profitablity.

Mervyn King

Included a code of Corporate practice and conduct that went beyond the corporation itself.

Compensation Committee

Operating committee staffed by members of the board of directors plus independent or outside directors and is responsible for setting the compensation for the CEO and others.

Audit Commitee

Overseeing the financial reporting process of an orginization and is staffed by members of the board of directors plus independent or outside directors.