Question 1
The raw bank is the largest commercial bank operating in the Democratic Republic of the Congo. The bank was incorporated on May 2, 2002, initially with ten employees. The raw bank was launched by the Rawji Group and owned by the Rawji brothers. The raw bank is a full-service financial institution, which offers retail, corporate, and commercial banking services.
Effective corporate governance principles are of great significance for the efficient functioning of the banking sector and the economy. Banks’ security and soundness are principal factors for financial stability, and the manner in which business is operated is also crucial for banks. Although Raw Bank is a family-owned business, it is essential to follow the principles of corporate governance. The fundamental principles of corporate governance of raw bank are:
- Offer reasonable guidance for the bank’s supervisors in determining the methods used by the raw bank for proper selection of Board members and senior management.
- Expand the principles on governance of risks, which comprises objectives of risk management performed by business units, functions based on internal audit and control, and the significance of efficient risk principles to coerce adequate management of risk within a bank.
- Strengthen the role of the board of directors to effectively implement the management systems of risks.
- Put a significant influence on the board’s collective capabilities and look that the individual members of the board invest their sufficient time and subsequent developments in the field of banking.
- An incentive structure must be organized through which senior management and board of a bank are able to communicate the issues on the risk undertaken and emphasize the operations of banks.
- Preserve the benefits of shareholders, meet the obligations of shareholders, and consider the objectives of other efficient shareholders.
- To support corporate activities and culture so that bank is operated efficiently with diligence and according to the prescribed laws and guidelines.
Supervisors have the sole objective to incorporate effective corporate governance since it is regarded as a key factor for the secured and efficient functioning of a bank’s operations, and it is not conducted properly. It may have a major impact on the risk profile of a bank. Corporate governance plays a significant role in shaping the pattern of distribution of credit and adequate supply of financial services. Hence, the effective principles of corporate governance have to be governed.
Question 2
- Dawa Limited is regarded as the leading producer of pharmaceutical-based human healthcare products, especially in Kenya and East Africa. Simple methods of operation have been applied to make the group effective. Automated machinery has also been installed. The company has strengthened its manufacturing methods and products to overcome increased demands for extraordinary medications. Dawa limited also develops partnerships and alliances to integrated new approaches across the industry. In this way, Dawa limited has the requisite capability to acquire the targeted growth strategy with specialized equipment.
- A whistleblower is referred to as an individual, usually an employee, who delivers the information, which is proved unlawful within a private or government organization. On the other hand, a watchdog is referred to as a person or group that keeps watching to avoid unethical practices. In other words, a watchdog is considered as a person whose objective is to review whether the companies are not ignoring the rights of people or performing something against the law.
- Efficient corporate governance ensures the overall performance of the market and economic development. Corporate governance also minimizes potential hazards, corruption, and the cost of energy. The Trust of investors is maintained, and hence the business can efficiently enlarge its capital. Owners and employees are also provided with opportunities to meet the desired objectives—Dawa limited functions within a superior corporate citizen’s beliefs. The brands of Dawa limited are also quite popular in the market. They provide medicines of high quality and affordable so that the basic requirements of patients are fulfilled. They are constantly advancing to improved technologies. Hence, the implementation of corporate governance is beneficial for the pharmaceutical company Dawa limited.
Question 3
- Mumias Sugar Company is engaged in the manufacture and sale of sugar. Mumias Sugar Company is regarded as the most efficient of all the sugar firms in Kenya. Pearson’s correlation coefficient was used to evaluate the connection between the performance of the organization and corporate governance of sugar manufacturing firms. Multiple analyses on regression were utilized to evaluate the impact of corporate governance on the organization’s performance. Various practices based on corporate governance, which comprise Top management, communication policy of shareholders, and Continuous Disclosure, had a major effect on Sugar firms’ role in Western Kenya. Several other practices, such as trade discharge and government involvement, also play a major role in the performance of sugar firms in Kenya.
- Globalization is referred to as the set of methods associated with cultural, technological, social, and economic aspects that contribute to the association between societies and individuals all over the world. In other words, it also refers to the amalgamation of markets in the global economy, which leads to the maximized collaborations of economies.
Globalization provides several advantages to national economies and to producers all over the world. Globalization provides easy access to huge markets, which states that the firm may experience increased product requirements. Globalization has also led to maximized flows of internal investment between countries. Due to reductions in rates and maximized income, globalization can produce maximum gains for shareholders. Along with new markets, globalization also provides opportunities for companies to find extraordinary talent that is not readily available in their existing market.
Question 4
- Corporate crime is also referred to as organized crime. It is a type of crime committed by individuals for acquiring the benefits of their organization employed. Certain individuals do not recognize themselves as criminals, as well as their activities. The corporate crime was established by the parliament’s act, which was incorporated in the 14th Traditional crimes are different from corporate crimes since individuals usually commit corporate crimes. Corporate crime is considered a significant danger for the well-being of the community.
- Counterfeiting, bribery, embezzlement, bank fraud, and blackmail are the major types of corporate crimes.
Bribery refers to providing something enviable or receiving anything as a value. An example of bribery is to offer money to a congressional representative to acquire a government job.
Embezzlement is a kind of fraud in which a particular individual steals the possessions offered to him. It generally occurs when a person utilizes funds for completely distinct objectives rather than the desired objectives. Ponzi schemes and several other swindles are relevant examples of embezzlement. Embezzlers are also granted the authority to generate their personal receipts for those activities that did not take place and then further the money, which has been paid for private expenditure.
Bank fraud is a kind of immoral offense in which property, money, or certain possessions are acquired through unlawful methods. Bank frauds cover a major part of white-collar crimes being committed. In other words, bank fraud is also referred to as a procedure to acquire money from shareholders. Examples of bank fraud are fraudulent loans, robbery based on individuality.
Blackmail is a type of corporate crime in which probable danger is applied while disclosing false or true facts about an individual in situations when several other requirements are not fulfilled. The term blackmail was initially incorporated in the 16th century. Emotional blackmail, cyber blackmail are various instances of blackmail.