Corporate Governance
 

CORPORATE GOVERNANCE AND BUSINESS ETHICS


          

 

 

Course Description.  The course covers the essential concepts of and case studies on the governance and ethics of corporations. 

 

Course Objectives.  The course aims to: (1) provide students with a basic understanding of the mechanisms whereby companies can be made to act in the best interest of shareholders, other stakeholders, and society as a whole; (2) provide students with knowledge of general ethical principles as applied to the special situations of business and the ability to make informed judgments through case analyses; and (3) equip students with the ability to formulate basic strategies in relation to corporate ethics and governance.

 

Textbooks.  Kim, Kenneth, and John Nofsinger, Corporate Governance, 2nd Ed. 

Aristotle's "Nicomachean Ethics" (suggested translation by Michael Pakaluk


Supplementary Texts.  (1) Institute of Corporate Directors, Corporate Governance in the Philippines: A Compilation of Case Studies on Filipino Corporations.  (2) Velasquez, Manuel.  Business Ethics: Concepts and Cases, 6th Ed.

 

Contents/Schedule.

 

Session

Topic


I.               Corporate Governance:

1-2

A.            History and Nature of Corporate Governance


Separation of Ownership from Control; Principal-Agent Problem

3-4

B.           The Environment of Corporate Governance: Influences


Philippine Corporate Governance: Issues and Reforms (by Dr. Erlinda Echanis)

5-6

C.           Accounting and Auditors: Disclosure & Reform, Financial Reporting


Boards of Directors


Banks and Analysts


Creditors and Credit Rating Agencies


Shareholders and Shareholder Activism

7

D.           Corporate Governance Principles (http://www.oecd.org/dataoecd/32/18/31557724.pdf)

8-9

E.           Corporate Governance Rules and Codes:


1.         Sarbanes-Oxley Act of 2002

http://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Act


2.      Philippines SEC “Code of Corporate Governance”


3.      Philippines Institute of Corporate Directors (ICD)


4.      Company Laws; Corporate Codes of Ethics; Corporate Citizenship

10

F.            Issues in Corporate Governance:


1.      Regulation: Basic Notions

--Global FINANCIAL Regulation in the context of the economic/financial crisis of 2008-2010

--WATCH VIDEO DOCUMENTARY "INSIDE JOB"


2.      Entrepreneurship and Small Business


3.      Multinational Enterprises


4.      Corporate Takeovers; Insolvency and Corporate Distress




II.             Business Ethics:

11

1.      Ethical Standards - GENERAL ETHICS

12

[No class; Do Homework]

2.      Values in Modern Society:

--VIRTUE ETHICS:

--please read & study this "Virtue Ethics" paper:

http://ajba.um.edu.my/filebank/published_article/4788/2.pdf

13

MAR. 3

3.      The Concept of Corporate Social Responsibility:

o    SOCIAL ENTERPRISE

o    Case in Point: ETHICAL BANKING

14

MAR. 5

4.      Models of Corporate Conduct:

o    ACCOUNTABILITY

o    STEWARDSHIP

o    VIRTUE ETHICS


5.      Issues in Business Ethics:

15

MAR. 10

a)      Capitalism: Competition, Pricing, Profits, Monopolies

15

MAR. 10

b)      Employer-Employee Relations: (i) Basic Employee Rights; (ii) Labor Code; (iii) Other (Industrial Relations) I.R. issues

c)      Customer Relations

d)      Advertising Ethics

e)      Whistle-Blowing

f)        Unethical and Questionable Practices


g)      Unfair Trade Practices, Trademarks/Tradenames, Patent Laws, Philippine Copyright Law, Intellectual Property Rights (IPR)

h) Environmental/Ecological Ethics

16

MAR. 12

6.      Codes of Ethical Conduct

17

MAR. 17

7a.      Poverty Situationer: 

Preparation for end-of-term social enterprise write-up

17

MAR. 17

7b.      Short video documentary "PovertyCure" (or ALTERNATIVE)

18

MAR. 19

FILM-SHOWING:

http://bloodmoneyfilm.com/

19

MAR. 24

8.      HEALTHCARE ETHICS: Guest Speaker

20

MAR. 26

FIRST EXAM

21

HOLIDAY (Holy Tuesday)

22

HOLIDAY (Maundy Thursday)

23

APR. 7

CASES 1 & 2

24

Holiday (Bataan Day)

25
APR. 14

CASES 3 & 4

26

APR. 16

CASES 5 & 6



Sessions

27-30

Professor out for International Conference

31

MAY 5

FINAL EXAM

 

Other Readings and References

 

 

Allen, Franklin, and Douglas Gale, Comparing of Financial Systems, Chapter 4, “Corporate Governance”, MIT Press, 2001.

Buchholz, Rogene A.  Fundamental Concepts and Problems in Business Ethics. 

Echanis, Erlinda.  Philippine Corporate Governance: Issues and Reforms. Philippine Management Review, October 2006:

http://journals.upd.edu.ph/index.php/pmr/article/view/1816

Macdonald, Roderick.  Values & Ethics in Business. (Sinag-tala Publications, Manila, Philippines).

Shleifer, Andrei, and Robert Vishny (1997), “A Survey of Corporate Governance,” The Journal of Finance, Vol. 52, No. 2.

Tirole, Jean, The Theory of Corporate Finance, Chapter 1, “Corporate Governance”, PrincetonUniversity Press, 2006.

Websites:

Ethics: http://www.scu.edu/ethics/practicing/focusareas/business/

http://youniv.wordpress.com/category/accounting-ethics/

ETHICS: An Online Textbook

http://www2.sunysuffolk.edu/pecorip/SCCCWEB/ETEXTS/ETHICS/CONTENTS.htm

Corporate Governance: http://www.corpgov.net/

http://www.oecd.org/topic/0,2686,en_2649_34813_1_1_1_1_37439,00.html

Jacques Cory - Business Ethics online course syllabus:

http://www.businessethicscory.com/




LINE-UP OF CASES (in semesters with 6 Cases):