AC6001: Corporate Accountability

Corporate Governance, and the way that companies conduct themselves in society, is a current focus for investors, the public at large, regulators and national government. This module will offer the opportunity to consider and explore what the responsibilities of corporate, and some non-corporate, entities might be to their shareholders, other stakeholders and the society which gives them a licence to operate.

The module will cover the theoretical bases and underpinning principles of corporate governance; its continuing development and evolution around the world; the key role of directors and the board as agents and risk managers; and the role and responsibilities of institutional investors in achieving good corporate governance. Through analysis and discussion of case studies, the factors which cause corporate collapse will be identified and their significance for corporate governance considered.

A student passing this module should be able to;

1. Discuss a range of definitions of corporate governance, and compare and contrast several theoretical frameworks of corporate governance; (PLO1)
2. Appreciate the importance of effective corporate governance and the causes and consequences of weak corporate governance, and evaluate the links between corporate governance and corporate financial performance; (PLO4), (PLO5)
3. Discuss the findings of academic research relating to the effectiveness of boards as a corporate governance mechanism; (PLO4), (PLO5)
4. Consider the place of risk management for corporate entities within the corporate governance structures; (PLO1)
5. Evaluate the importance of institutional investors in corporate governance and assess the evidence on the impact of shareholder activism on corporate performance and company value; (PLO4)
6. Consider the evolution of corporate governance worldwide and assess the concept of global convergence in corporate governance; (PLO1)
7. Appreciate the importance of ethical standards for both individuals and corporate entities in achieving good corporate governance. (PLO1)
8. Use an analysis of companies’ compliance with codes of corporate governance to evaluate the effectiveness of different approaches to corporate governance; find sources to support alternative perspectives on corporate governance, and communicate this analysis both in writing and orally. (PLO8), (PLO9)