WEEK 2 TUTORIAL DISCUSSION QUESTIONS

1. What are some of the definitions of corporate governance according to

Solomon (2010)? Should there be one generally accepted definition of
corporate governance? Why/Why not?
The definitions of corporate governance include:
'System of checks and balances, both internal and external to companies,
which ensures that companies discharge their accountability to all their
stake-holders and act in a socially responsible way in all areas of their
business activity'
'A way in which a company is controlled and directed'
There should not be a singular definition as the circumstances may differ
in each firm, country or economy, which needs to accounted for. Also, the
economy is in constant fluctuation and therefore the definition needs to be
updated to remain relevant. Differing definitions give incentives for
economists to attempt to discover new meaning or aspect of the phrase in
order to form a generally accepted definition.
2. Who are the relevant stakeholders of corporations? How are they affected
by corporate governance issues?
3. Corporate collapses have always occurred and some argue that they are
necessary. Why is there such an emphasis on corporate governance
issues today? Do you think good corporate governance can prevent
corporate collapses?
4. Consider the following list of companies what happened/is happening to
them?
HIH Insurance
Ansett Australia
One. Tel
ABC Learning
Red Group Retail
Darrell Lea
David Jones
Commonwealth Bank of Australia (CBA)
National Australia Bank (NAB)
Woolworths
Qantas
Whitehaven Coal
Enron
WorldCom
Olympus