The dictionary alternatives for the word ‘Collusion’ include:
conspiracy - Collusion
complicity - Collusion
knowledge - Collusion
consent - Collusion
approval - Collusion
involvement - Collusion
agreement - Collusion
According to Jeff Rubin and Peter Buchanan, who wrote on October 31, 2008, in their article ‘What's the Real Cause of the Global Recession?’In CIBC World Markets Inc. StrategEcon, “Certainly oil shocks are no stranger to recessions. Four of the last five global recessions were preceded by one. Yet the recent spike in oil prices doesn’t seem to get any credit for what’s happening to the world economy now……. That’s odd because it should. Curiously, an over-500% increase in the real price of oil gets virtually ignored as a culprit behind today’s economy, eclipsed by the ongoing crisis in financial markets. Yet the run-up in real oil prices this cycle is over twice the spike in oil prices that occurred during the first or second OPEC oil shock . And those oil shocks produced two of the deepest recessions in the entire post-war period, including the 1980-82 double dip……. And, of course, it hasn’t just been American consumers who have been socked with mounting fuel bills. It’s been true for households from all OECD countries. Over the last five years their annual fuel bill has grown a staggering $700 billion. Of this, $400 billion annually has gone to OPEC producers. Was just Rubin, Buchanan and myself who noticed the the 500% spike in oil prices.
Where were/are governments, directors, CEOs, managers of big business?
Where were/are the decision makers in society?
Where were/are the GOVERNANCE SYTEMS AND STRUCTURES IN OUR GLOBAL SOCIETY?
Well, it seems most have been asleep just filling their coffers. Just let us take a look at who stand to extract (thesaurus search for extract indicates that EXTORT can be used in this instance instead of extract).
1) The governments (all governments around the world) gain substantially through their tax structures.
2) Big businesses and it does not matter if they are the ones who drill the oil wells, the oil and gas boom affects all businesses in a big way, for example, restaurants, groceries, clothing stores, luxury items to name a few, all gain from exorbitant oil prices.
Who are the ones IN SOCIETY who are and will pay for this GREED?
The housing crises in the US IS THE FIRST FALL OUT BY THIS GLOBAL ABUSE OF GOVERNANCE SYSTEMS.
a) The automobile sector is now reeling
b) Obviously if large sectors of the global economy like the automobile, travel, agriculture are negatively affected by ridiculously (out of control) high oil prices the GDP of countries will be comprised. (GOVERNANCE 101; greed by governments and wonton disregard for citizens will lead to downfall of the economy)
According to: “http://www.bloomberg.com/apps/news?pid=20601082&sid=asagaXsaR72M&refer=canada”
“Canadian stocks had their worst weekly slide in a month after energy and financial companies fell today on a record drop in U.S. retail sales that fueled concern the recession will cut demand for Canada's exports. EnCana Corp., Canada's biggest energy company by market value, and Royal Bank of Canada, the biggest lender, declined after the retail report. BlackBerry e-mail phone maker Research in Motion Ltd. led the week's declines on analyst estimate cuts and a worsening outlook for mobile phones. Gold producers led weekly gains on the index. The Standard & Poor's/TSX Composite Index fell 3.2 percent to 9,055.96 today in Toronto. ……….. the worst weekly performance since Oct. 10. Retail sales in the U.S. dropped 2.8 percent ………….. pushing the world's biggest economy toward its worst slump in decades. Spending may continue to falter from job losses, plunging stocks and falling home values, the Commerce Department said today. ``This retail sales number was horrific,'' said John Stephenson, who helps to oversee about $1.5 billion at First Asset Investment Management Inc. in Toronto. ``………………..How can the U.S. have a cold and we not catch the flu?'' The Standard & Poor's 500 Index fell 4.2 percent to 873.29, extending a second straight weekly loss, and has lost 41 percent this year. In Canada, the S&P/TSX ……………. has fallen 35 percent this year and 40 percent from a June high. Oil Declines Crude oil for December delivery fell $1.94, or 3.3 percent, to $56.30 ………….. EnCana dropped 5.8 percent to C$54.75 today. Suncor Energy Inc. fell 3.5 percent to C$23.34. Financial institutions worldwide have posted more than $950 billion in losses and credit writedowns this year as the worst financial slump since the Great Depression worsens……….`Same Brush' //``The financials are actually being tarred with the recession brush as well,'' said John Kinsey, who helps manage about C$1 billion for Caldwell Securities Ltd. in Toronto. ``It looks like we're going to get maybe a world recession, and the next step is the big question, whether it'll turn into a depression.''
So what part does Governance play in this catastrophe?
We are all stakeholders in our communities; some of us are shareholders in these organizations. Shareholders are the owners of the corporation who are imbued with the authority to elect directors to represent their interests and govern the corporation. We need to address this situation that has gone corrupt, distorted, and awry. We can exercise our votes either through our voting power or through reducing our demand.
HOW CAN WE ENSURE THAT THIS DOES NOT EVER HAPPEN AGAIN?
Dr. Rookmin Maharaj has developed a unique and revolutionary model that can identify the characteristics requisite for effective Corporate Governance within an organization that strikes the ideal balance between the formal and informal rules and regulations. Dr. Maharaj has researched with the top oil and gas, mining, chemical, and pipeline companies in North America. She continues to transform ideas into actions, ultimately increasing the bottom line for She is currently consulting with companies in Alberta, Canada on Corporate Governance. She has worked in the energy sector in Alberta Canada for over fifteen years. She has a master’s degree in Higher Education and has taught in France, the Caribbean and in Canada at the University of Calgary and Mount Royal College on Environmental Management and Business. Contact:rmaharaj@ucalgary.ca, maharajl@netzero.net
Thursday, January 15, 2009
Lack of use of Dr. Rookmin Maharaj's Corporate Governance Model
In Washington news, according to Eric Lichtblau, in an article entitled— Federal Cases of Stock Fraud Drop Sharply: Lichtblau noted that Federal officials are bringing far fewer prosecutions as a result of fraudulent stock schemes than they did eight years ago. This situation begs other questions about whether the Bush administration has been too lax in policing Wall Street. “Legal and financial experts say that a loosening of enforcement measures, cutbacks in staffing at the Securities and Exchange Commission, and a shift in resources toward terrorism at the F.B.I. have combined to make the federal government something of a paper tiger in investigating securities crimes”. If Dr. Maharaj’s Corporate Governance Model was used as a litmus test not only for federal agencies but by the average investor, the $50 billion Ponzi scheme that Bernard L. Madoff is accused of running may have been avoided altogether.
HOW CAN WE ENSURE THAT THIS DOES NOT HAPPEN?
Dr. Rookmin Maharaj has developed a unique and revolutionary model that can identify the characteristics requisite for effective Corporate Governance within an organization that strikes the ideal balance between the formal and informal rules and regulations. Dr. Maharaj has researched with the top oil and gas, mining, chemical, and pipeline companies in North America. She continues to transform ideas into actions, ultimately increasing the bottom line for She is currently consulting with companies in Alberta, Canada on Corporate Governance. She has worked in the energy sector in Alberta Canada for over fifteen years. She has a master’s degree in Higher Education and has taught in France, the Caribbean and in Canada at the University of Calgary and Mount Royal College on Environmental Management and Business. Contact:rmaharaj@ucalgary.ca, maharajl@netzero.net
HOW CAN WE ENSURE THAT THIS DOES NOT HAPPEN?
Dr. Rookmin Maharaj has developed a unique and revolutionary model that can identify the characteristics requisite for effective Corporate Governance within an organization that strikes the ideal balance between the formal and informal rules and regulations. Dr. Maharaj has researched with the top oil and gas, mining, chemical, and pipeline companies in North America. She continues to transform ideas into actions, ultimately increasing the bottom line for She is currently consulting with companies in Alberta, Canada on Corporate Governance. She has worked in the energy sector in Alberta Canada for over fifteen years. She has a master’s degree in Higher Education and has taught in France, the Caribbean and in Canada at the University of Calgary and Mount Royal College on Environmental Management and Business. Contact:rmaharaj@ucalgary.ca, maharajl@netzero.net
Corporate governance decision-making model: How to nominate skilled board members, by addressing the formal and informal systems
This research study focuses on the problems involved in nominating board members based solely on rules and regulations which neglect the affective dynamics of board behaviour and board process. For example, choosing board candidates who are independent (not part of a company’s management), a rule imposed by the Toronto Stock Exchange guidelines, may ensure that an organisation remains listed on this lucrative exchange. However, it does not ensure that the candidates have the necessary knowledge or are well versed in the company's business activities to effectively serve on a particular board.
Having independent board members does not ensure that they ask tough questions of themselves or of management or that they have an extensive network from which to draw on for advice on strategic issues. These are equally important areas of board governance that cannot be ignored when choosing candidates for the board, and these questions should not be suppressed in favour of concentrating solely on formal concerns such as independence.
Information about board characteristics can provide management theorists with a broader range of ‘informal’ variables that can contribute to the decision-making process. Board characteristics assist the board to operate as a team, improving the efficiency of the board. Selecting board members with the most suitable and effective characteristics for a particular board ensures that directors are spending their limited time on the company’s most important challenges.
This research was carried out in several stages in order to gather both qualitative and quantitative data. In this research there was a significant relationship for Values and Decision-making and no relationship for TSXFormal and Decision-making, which is consistent with literature suggesting there must be a change in executives’ values to ensure changes in behaviour. A Corporate Governance model was developed that demonstrates the efficacy in ensuring that boards populated with board members who have Knowledge, Values (Skills Matrices) are more aware of the detrimental effect that Groupthink can have on the Decision-making process.
Several executives mentioned the ability of board members “to apply due diligence” to strategic decision-making. This means that directors apply their experience and expertise to better understand issues and bring these to bear upon the decision-making process. Additionally, Knowledge, Values, Groupthink (Skill Matrices) may be used both when nominating new board members and as an annual evaluative tool. Businesses are continually diversifying and board members need to continuously embellish their skill set and knowledge to adapt.
However, the finding and the development of this Corporate Governance Model are significant as they mark the start of how board characteristics can be operationalized. What is needed is more balanced research that looks at both the formal and informal system. In doing so, more articulate measures of board decision-making process will evolve. The business environment is ever changing and dynamic, research in these areas will convey the interrelationship between the formal and informal system.
Nevertheless, this research is unique as it has investigated the formal and informal system using both primary qualitative and quantitative data analysis and provides much needed information about characteristics requisite for nominating board members.
Full article may be read at:
http://www.palgrave-journals.com/jdg/journal/vaop/ncurrent/index.html
Corporate governance decision-making model: How to nominate skilled board members, by addressing the formal and informal systems
Int J Discl Gov advance online publication, January 8, 2009; doi:10.1057/jdg.2008.27
Having independent board members does not ensure that they ask tough questions of themselves or of management or that they have an extensive network from which to draw on for advice on strategic issues. These are equally important areas of board governance that cannot be ignored when choosing candidates for the board, and these questions should not be suppressed in favour of concentrating solely on formal concerns such as independence.
Information about board characteristics can provide management theorists with a broader range of ‘informal’ variables that can contribute to the decision-making process. Board characteristics assist the board to operate as a team, improving the efficiency of the board. Selecting board members with the most suitable and effective characteristics for a particular board ensures that directors are spending their limited time on the company’s most important challenges.
This research was carried out in several stages in order to gather both qualitative and quantitative data. In this research there was a significant relationship for Values and Decision-making and no relationship for TSXFormal and Decision-making, which is consistent with literature suggesting there must be a change in executives’ values to ensure changes in behaviour. A Corporate Governance model was developed that demonstrates the efficacy in ensuring that boards populated with board members who have Knowledge, Values (Skills Matrices) are more aware of the detrimental effect that Groupthink can have on the Decision-making process.
Several executives mentioned the ability of board members “to apply due diligence” to strategic decision-making. This means that directors apply their experience and expertise to better understand issues and bring these to bear upon the decision-making process. Additionally, Knowledge, Values, Groupthink (Skill Matrices) may be used both when nominating new board members and as an annual evaluative tool. Businesses are continually diversifying and board members need to continuously embellish their skill set and knowledge to adapt.
However, the finding and the development of this Corporate Governance Model are significant as they mark the start of how board characteristics can be operationalized. What is needed is more balanced research that looks at both the formal and informal system. In doing so, more articulate measures of board decision-making process will evolve. The business environment is ever changing and dynamic, research in these areas will convey the interrelationship between the formal and informal system.
Nevertheless, this research is unique as it has investigated the formal and informal system using both primary qualitative and quantitative data analysis and provides much needed information about characteristics requisite for nominating board members.
Full article may be read at:
http://www.palgrave-journals.com/jdg/journal/vaop/ncurrent/index.html
Corporate governance decision-making model: How to nominate skilled board members, by addressing the formal and informal systems
Int J Discl Gov advance online publication, January 8, 2009; doi:10.1057/jdg.2008.27
Friday, September 26, 2008
Harper wants to crack down on Gas-Price Fixing in Canada!
How can Mr. Harper even attempt such an endeavour when:
The proliferation and scope of the corporation have now reached mammoth proportions, there are over 40, 000 corporations in the world, and two hundred giant corporations now control over a quarter of the world’s economic activity. Philip Morris, an American corporation which operates in 171 countries has annual revenues larger than that of New Zealand’s economy. Of the 100 largest economies, in the world, 51 are corporations, only 49 are countries. Corporations are calling the shots and in fact actively formulating policy.
Today, the public corporation itself operates as a form of representative government. In the olden days ‘the church’ called the shots today ‘BIG BUSINESS’ have taken over the power that was once held by ‘DEMOCRATIC GOVERNMENTS’. We have a government in power who stated that they plan, “to go after gas companies with price fixing legislation that would make it easier to prove collusion”
(http://news.sympatico.msn.ctv.ca/Home/ContentPosting?newsitemid=CTVNews%2f20080924%2felection2008_economy_worries_080925&feedname=CTV-TOPSTORIES_V3&show=False&number=0&showbyline=True&subtitle=&detect=&abc=abc&date=TrueHarper wants to crack down on gas-price fixing).
Is it not clear that we as consumers have been and are being gouged by these oil companies?
Continuing in this same article, “Tories say they will widen the price-fixing provisions in the Competition Act and almost triple the maximum penalties to 14 years in prison and a $25-million fine”. Certainly we can count on never witnessing One Company being fined in our lifetime.
The revenue collected by our ‘DEMOCRATIC CANADIAN GOVERNMENT’ is filling the coffers, why would they enforce ‘provisions in the Competition Act’; to reduce the revenue they are collecting from these oil sands, oil and gas, and pipeline companies?
So what part does Corporate Governance play in this scenario?
We are all stakeholders in our communities, some of us are shareholders in these organizations. Shareholders are the owners of the corporation who are imbued with the authority to elect directors to represent their interests and govern the corporation. We need to address this situation that has gone corrupt, distorted, and awry. We can exercise our votes either through our voting power or through reducing our demand. Please read my article
(http://www.advaitaashrama.org/pb_archive/2006/PB_2006_September.pdf)
for some solutions to this crisis in our global society.
The proliferation and scope of the corporation have now reached mammoth proportions, there are over 40, 000 corporations in the world, and two hundred giant corporations now control over a quarter of the world’s economic activity. Philip Morris, an American corporation which operates in 171 countries has annual revenues larger than that of New Zealand’s economy. Of the 100 largest economies, in the world, 51 are corporations, only 49 are countries. Corporations are calling the shots and in fact actively formulating policy.
Today, the public corporation itself operates as a form of representative government. In the olden days ‘the church’ called the shots today ‘BIG BUSINESS’ have taken over the power that was once held by ‘DEMOCRATIC GOVERNMENTS’. We have a government in power who stated that they plan, “to go after gas companies with price fixing legislation that would make it easier to prove collusion”
(http://news.sympatico.msn.ctv.ca/Home/ContentPosting?newsitemid=CTVNews%2f20080924%2felection2008_economy_worries_080925&feedname=CTV-TOPSTORIES_V3&show=False&number=0&showbyline=True&subtitle=&detect=&abc=abc&date=TrueHarper wants to crack down on gas-price fixing).
Is it not clear that we as consumers have been and are being gouged by these oil companies?
Continuing in this same article, “Tories say they will widen the price-fixing provisions in the Competition Act and almost triple the maximum penalties to 14 years in prison and a $25-million fine”. Certainly we can count on never witnessing One Company being fined in our lifetime.
The revenue collected by our ‘DEMOCRATIC CANADIAN GOVERNMENT’ is filling the coffers, why would they enforce ‘provisions in the Competition Act’; to reduce the revenue they are collecting from these oil sands, oil and gas, and pipeline companies?
So what part does Corporate Governance play in this scenario?
We are all stakeholders in our communities, some of us are shareholders in these organizations. Shareholders are the owners of the corporation who are imbued with the authority to elect directors to represent their interests and govern the corporation. We need to address this situation that has gone corrupt, distorted, and awry. We can exercise our votes either through our voting power or through reducing our demand. Please read my article
(http://www.advaitaashrama.org/pb_archive/2006/PB_2006_September.pdf)
for some solutions to this crisis in our global society.
Wednesday, August 20, 2008
New Journal Article a must read on Shell Canada
Dr. Rookmin Maharaj
Shell Canada: Over a Decade of
Sustainable Development Reporting Experience
Abstract
Purpose: This paper investigates what motivated Shell Canada, a subsidiary of Royal Dutch Shell, to be one of the first companies in the world to report its environmental initiatives in 1991. It explores how Shell Canada driven by a set of core values and business principles, continues to make strides in the quality of its sustainability reporting and communication.
Design/methodology/approach: Shell historical reports and documents were reviewed and interview data gathered from company personnel.
Findings: Shell Canada has gained a reputation for striving toward stakeholder engagement and transparency in its reporting as well as through its actions.
Practical Implications: This paper offers advice to other companies as to how to improve their corporate communications regarding their environmental and sustainability performance.
Originality/value: This paper demonstrates Shell Canada’s efforts to initiate transparent sustainable development reporting and stakeholder engagement, two areas in which other companies can learn from Shell Canada.
Keywords: core values; sustainability reporting; triple bottom line; stakeholder engagement; transparency; Shell Canada
Full paper may be accessed at:
http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=228510D11AF7ED27A9029640C28B8D0B?contentType=Article&contentId=1729339
Shell Canada: Over a Decade of
Sustainable Development Reporting Experience
Abstract
Purpose: This paper investigates what motivated Shell Canada, a subsidiary of Royal Dutch Shell, to be one of the first companies in the world to report its environmental initiatives in 1991. It explores how Shell Canada driven by a set of core values and business principles, continues to make strides in the quality of its sustainability reporting and communication.
Design/methodology/approach: Shell historical reports and documents were reviewed and interview data gathered from company personnel.
Findings: Shell Canada has gained a reputation for striving toward stakeholder engagement and transparency in its reporting as well as through its actions.
Practical Implications: This paper offers advice to other companies as to how to improve their corporate communications regarding their environmental and sustainability performance.
Originality/value: This paper demonstrates Shell Canada’s efforts to initiate transparent sustainable development reporting and stakeholder engagement, two areas in which other companies can learn from Shell Canada.
Keywords: core values; sustainability reporting; triple bottom line; stakeholder engagement; transparency; Shell Canada
Full paper may be accessed at:
http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=228510D11AF7ED27A9029640C28B8D0B?contentType=Article&contentId=1729339
Sunday, July 6, 2008
Dr. Rookmin Maharaj; Corporate Governance Model; Toronto-Dominion Bank (TSX:TD) disclosed Friday a $96-million loss caused by "incorrectly priced"
…………………..AND LIFE GOES ON…………………………….
"It's got to be disappointing for management at TD because they have prided themselves on having not had these issues, where many of their peers have had absolutely devastating related issues," said Brad Smith of Blackmont Capital. TD Bank has spent the last year gliding relatively unscathed through a period where its Canadian peers have been slammed with massive writedowns related to credit losses tied to the U.S. subprime mortgage market....................... The bank's announcement echoed similar risk management troubles faced by the Bank of Montreal (TSX:BMO) early last year when it reported $680 million of commodities-trading losses, mostly from natural gas trading. TORONTO - Toronto-Dominion Bank (TSX:TD) disclosed Friday a $96-million loss caused by "incorrectly priced" financial investments at its operations in London. Canada's second-biggest bank by assets said the employee involved at its TD Securities arm "is no longer with the company" and the Toronto bank is co-operating with Canadian and British regulators investigating the matter.( http://finance.sympatico.msn.ca/investing/news/businessnews/article.aspx?cp-documentid=8438736TD).
Where were the directors?
Who are these so called FINANCIAL ANALYSTS?
For solutions to these ONGOING, NEVER ENDING, GOVERNANCE OVERSIGHT (USED IN THE NEGATIVE SENSE, I.E. OMISSION; FAILURE TO NOTICE). PLEASE READ OTHER ARTICLES ON MY BLOG
It is argued that a combination of legislation, regulation, effective risk management and appropriate sanctions are needed, if such unethical behaviour, and resulting corporate failure, is to be prevented in future. However, what is required is an astute, independent, assessment of these financial collapse debacles. This may establish that failures within these companies' corporate cultures and management systems allow, if not encourage, unethical behaviour by key individuals. COULD IT BE THAT THE CONTINUATION OF THE OLD BOYS CLUB may be the fundamental reason for the blatant disregard and perception of invincibility/groupthink mentality of same. COULD IT BE THAT ONCE AN EMPLOYEE IS INCREASING THE PROFITS AND BOTTOM LINE OF AN ORGANIZATION HE/SHE IS SHELTERED BY TOP EXECUTIVES, WHO MAY TURN A BLIND EYE TO UNETHICAL PRACTICES?Dr. Rookmin Maharaj’s research on:Corporate Governance and the Board of Directors:Study of the Importance of the Role of the Formal & Informal SystemsInvestigates corporate governance issues from a behavioural viewpoint. It makes a distinction between strict adherence to formal rules and regulations: CEO/Chair separation, independence of board members and board size and informal characteristics of board members: knowledge, values, and groupthink.There are three main conclusions from her research and corporate experience:1. Clearly proves that formal rules and regulations are inadequate; they have little effect upon decision making by board members. Informal characteristics must be considered in unison with the formal system when nominating board members, management and employees in order to restore shareholder confidence and to rebuild trust in corporate governance.2. Similar values and groupthink can contribute positively to corporate decision making. However, there is a high possibility for groupthink and values to become redundant, masking board members’ and managements’ knowledge thus affecting their decision making process.3. Skills matrices that include questions related to values, knowledge and groupthink should be considered by corporations to ensure the nomination of well-rounded members, management and employees.Changes to board process, and board decision making, are seminal in preventing future Enron and WorldCom fiascoes. It is only by changing the behaviours of the board of directors, through adopting skills matrices, that sweeping changes can occur. In the past boards have asked: who are our board members? However, the most important question a board can ask today is: how can the skills and knowledge of our board members be used in service of the strategic direction of the corporation? This can be achieved by recruiting new board members, management and employees who fill the needs of an organization, in contrast to nominating ‘friends’ and continuing the tradition of the old boys club.Dr. Maharaj argues that, and has tangible evidence, that what should be done is a forensic audit on 'the people that we hire' and 'employees, managers, board members' should also conduct an audit on their potential employers. What is your opinion?Does your opinion change with this update?
"It's got to be disappointing for management at TD because they have prided themselves on having not had these issues, where many of their peers have had absolutely devastating related issues," said Brad Smith of Blackmont Capital. TD Bank has spent the last year gliding relatively unscathed through a period where its Canadian peers have been slammed with massive writedowns related to credit losses tied to the U.S. subprime mortgage market....................... The bank's announcement echoed similar risk management troubles faced by the Bank of Montreal (TSX:BMO) early last year when it reported $680 million of commodities-trading losses, mostly from natural gas trading. TORONTO - Toronto-Dominion Bank (TSX:TD) disclosed Friday a $96-million loss caused by "incorrectly priced" financial investments at its operations in London. Canada's second-biggest bank by assets said the employee involved at its TD Securities arm "is no longer with the company" and the Toronto bank is co-operating with Canadian and British regulators investigating the matter.( http://finance.sympatico.msn.ca/investing/news/businessnews/article.aspx?cp-documentid=8438736TD).
Where were the directors?
Who are these so called FINANCIAL ANALYSTS?
For solutions to these ONGOING, NEVER ENDING, GOVERNANCE OVERSIGHT (USED IN THE NEGATIVE SENSE, I.E. OMISSION; FAILURE TO NOTICE). PLEASE READ OTHER ARTICLES ON MY BLOG
It is argued that a combination of legislation, regulation, effective risk management and appropriate sanctions are needed, if such unethical behaviour, and resulting corporate failure, is to be prevented in future. However, what is required is an astute, independent, assessment of these financial collapse debacles. This may establish that failures within these companies' corporate cultures and management systems allow, if not encourage, unethical behaviour by key individuals. COULD IT BE THAT THE CONTINUATION OF THE OLD BOYS CLUB may be the fundamental reason for the blatant disregard and perception of invincibility/groupthink mentality of same. COULD IT BE THAT ONCE AN EMPLOYEE IS INCREASING THE PROFITS AND BOTTOM LINE OF AN ORGANIZATION HE/SHE IS SHELTERED BY TOP EXECUTIVES, WHO MAY TURN A BLIND EYE TO UNETHICAL PRACTICES?Dr. Rookmin Maharaj’s research on:Corporate Governance and the Board of Directors:Study of the Importance of the Role of the Formal & Informal SystemsInvestigates corporate governance issues from a behavioural viewpoint. It makes a distinction between strict adherence to formal rules and regulations: CEO/Chair separation, independence of board members and board size and informal characteristics of board members: knowledge, values, and groupthink.There are three main conclusions from her research and corporate experience:1. Clearly proves that formal rules and regulations are inadequate; they have little effect upon decision making by board members. Informal characteristics must be considered in unison with the formal system when nominating board members, management and employees in order to restore shareholder confidence and to rebuild trust in corporate governance.2. Similar values and groupthink can contribute positively to corporate decision making. However, there is a high possibility for groupthink and values to become redundant, masking board members’ and managements’ knowledge thus affecting their decision making process.3. Skills matrices that include questions related to values, knowledge and groupthink should be considered by corporations to ensure the nomination of well-rounded members, management and employees.Changes to board process, and board decision making, are seminal in preventing future Enron and WorldCom fiascoes. It is only by changing the behaviours of the board of directors, through adopting skills matrices, that sweeping changes can occur. In the past boards have asked: who are our board members? However, the most important question a board can ask today is: how can the skills and knowledge of our board members be used in service of the strategic direction of the corporation? This can be achieved by recruiting new board members, management and employees who fill the needs of an organization, in contrast to nominating ‘friends’ and continuing the tradition of the old boys club.Dr. Maharaj argues that, and has tangible evidence, that what should be done is a forensic audit on 'the people that we hire' and 'employees, managers, board members' should also conduct an audit on their potential employers. What is your opinion?Does your opinion change with this update?
Friday, July 4, 2008
ILLEGAL GUNS ENTER CANADA FROM THE UNITED STATES OF AMERICA!!!!
Canada is in dire need of effective leadership and Corporate Governance with regards to gun control. Perhaps we should take advice from Toronto Mayor David Miller who wants Ottawa to exert diplomatic pressure on Washington. As Mayor Miller noted if there is lack of control regarding guns in the US, THE PROBLEM will filter through Canada via loopholes like “blue-steel highway right up the U.S. from places where it's easy to get guns to the northeast U.S. and to Canada. Mayor Miller is correct in stating that Canada should make it a national security issue. As Mayor Miller noted there is a direct correlation between the weak U.S. gun laws and people dying on the streets of Canada." This seems a simple deduction and as citizens one would expect the Canadian Government to take a stand and stop dragging their feet with regard to instituting regulations AND ENFORCING THESE REGULATIONS! According to Yahoo news reporter “Public Safety Minister Stockwell Day noted that “any regulation that comes up for review, especially one that's been on the books but never implemented for a number of years, is always addressed to make sure it's current," Day says. If we were current why was a second time offender (according to Yahoo news) “Curtis Coleman caught red-handed smuggling a shipment of guns into Canada from the U.S. again?” Perhaps the slap on the wrist is not enough to curtail this sort of behavior in Canada.
“Mounties found them with backpacks carrying three dozen guns, including two machine pistols, 24 diamonds and US$100,000 cash. Coleman was convicted of smuggling and possessing prohibited or restricted firearms and deported after serving most of a two-year sentence. This time he pleaded guilty to a single count of being in a vehicle with the contraband guns. The judge condemned him for his role in trafficking guns that put the Canadian public at risk and he drew 36 months, less time served awaiting trial” (http://ca.news.yahoo.com/s/capress/080703/national/gun_smugglingThu Jul 3, 3:31 PM). How many lives need to be lost before ANY OR ALL OF the enforcement AGENCIES; THE JUDICAL SYSTEM AND THE Canadian Government, ACTUALLY TAKE A STAND!!!
“Mounties found them with backpacks carrying three dozen guns, including two machine pistols, 24 diamonds and US$100,000 cash. Coleman was convicted of smuggling and possessing prohibited or restricted firearms and deported after serving most of a two-year sentence. This time he pleaded guilty to a single count of being in a vehicle with the contraband guns. The judge condemned him for his role in trafficking guns that put the Canadian public at risk and he drew 36 months, less time served awaiting trial” (http://ca.news.yahoo.com/s/capress/080703/national/gun_smugglingThu Jul 3, 3:31 PM). How many lives need to be lost before ANY OR ALL OF the enforcement AGENCIES; THE JUDICAL SYSTEM AND THE Canadian Government, ACTUALLY TAKE A STAND!!!
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