7029EFA Governance Accountability and Ethics

You are required to select a UK Listed Company of your choice from the FTSE 350 Index (The FTSE 350 Index is a capitalisation-weighted index consisting of the top 350 largest companies listed on the London Stock Exchange) and write a report to address the requirements in Parts A, B and C.

Part A

You need to demonstrate that you understand how Corporate Governance operates practically for your chosen company in the context of the UK Corporate Governance Code 2018. To be able to complete Part A, you are required to;

Discuss the main principles of the UK governance code;

Demonstrate your understanding of how the code has been implemented in your selected company;

Critically analyse the explanations provided by your chosen company for non-compliance of the UK governance code.

Part B

You need to demonstrate that you can write a short critical discussion about the following Corporate Governance issue that is relevant to your chosen company.

To be able to complete Part B, you are required to;

Briefly explain the role of remuneration in corporate governance. This must capture the relevant links to the UK corporate governance code.

Discuss whether your chosen company pay its Chief Executive Officer (CEO) too much or too little. What does an analysis of your selected company’s accounts show in comparison with other companies in the same sector? So for example, if you have selected a company from the manufacturing sector, then you will need to compare the CEO remuneration of your selected company with a representative sample of other companies in the manufacturing sector listed on the FTSE 350 index).

Critically analyse whether there is a link between the CEO remuneration and the performance of your chosen company using data from the past 5 years.

Part C

You need to demonstrate that you can use Carroll’s Pyramid to analyse the corporate social responsibility (CSR) practices of the company you have chosen.

To be able to complete Part C, you are required to;

Briefly explain the role of Carroll’s Pyramid in CSR activities;

Discuss how and why Carroll’s Pyramid should be used to assess a company’s CSR activities;

Critically apply each of the four tiers of Carroll’s pyramid framework to your chosen company’s CSR activities using data from the annual reports and accounts.

1. Appreciate the links between corporate governance and other issues in accounting and finance
2. Assess the ethical implications of organisational choices in the area of corporate governance
3. Demonstrate a critical awareness of the cultural and social determinants of governance structures and practices