Effectiveness of corporate governance (Johnson and Johnson)
Make sure you do read instructions carefully before selecting the company you will be working on in the take-home assignment .
Have a nice day.
Individual take-home assignment replacing final exams
Length 800 words (+/-10%).
Select one company from no. 40 to no. 80 in the Fortune 500 list:
I chose Johnson and Johnson
Before reading any further pay special attention to three conditions:
1 You are not allowed to select the same company that you have researched in the case study or the project (in case that company is included among the first forty in the Fortune list).
2 Once you have selected a company you must use the BB to immediately notify everyone else in the course including me which company you have selected. This is in order to ensure that no more than one student works on the same company.
Only the first student who notifies everybody about the company he/she has selected can work on it. Other students will have to select among the remaining companies.
3 Maximum allowed plagiarism is 20%. Any paper with a higher % of plagiarism will get a grade of zero.
Keeping in mind material studied on Corporate Governance evaluate the effectiveness of corporate governance practices in the company you have selected among the first forty in the Fortune list. Specifically you must evaluate the following aspects:
1 Composition of the BOD. Internal directors vs. external directors and the qualifications and independence of the latter. Are external directors appropriately qualified and independent? Is there some conflict of interest?
Further, what is the nature of shareholding that is, individual (check also for family ownership) vs. institutional shareholders. Is there proportionate representation of institutional shareholders in the BOD? 5 points
2 Examine thoroughly the contents of the code of conduct of the company selected and check policies of the company in relation to different stakeholders such as customers, employees, the community, shareholders, government, etc. Does the company have an Audit Committee, a Corporate Governance Committee, does it produce an annual financial report, does it disclose financial information publicly, etc. Check also whether the company exhibits environmental and social responsibility as well as whether the company upholds human rights. 15 points
It is relatively easy to describe what the company selected does or does not. However, you are expected to adopt a critical eye and evaluate the company’s corporate government practices and not simply repeat what is found on its webpages. Remember, there are instances when companies may claim one thing but do quite another.
Thus, it is the evaluation of the effectiveness of corporate governance practices of the company selected that will decide the grade and not just copy-pasting practices as found on the company’s website.
Good luck V.