Corporate Governance - the Immigration and Refugee Board of Canada - Brandon Huntley- Brandon Huntley, a 31-year-old South African who stayed illegally in Canada in 2006, after first arriving on a work permit as a carnival attendant, was awarded refugee status after complaining that he was mugged and stabbed in seven attempted robberies in South Africa.
Who are these board members who stand on the Immigration and Refugee Board of Canada? What are their qualifications? Is this another OLD BOYS/GIRLS CLUB!!!1In an article that may be viewed at: http://news.%20sympatico.%20ctv.ca%20/abc/home/contentposting.aspx?isfa=1&feedname=CTV-OPSTORIES%20_V3&showbyline=True&date=true&newsitemid=CTVNews%2f20090902%2frefugee_decision_090902
a white South African, Brandon Huntley claimed he was the victim of numerous attempted robberies and muggings. According to Huntley, whites in South Africa are often the target of black criminals, and the government has done nothing to intervene.
However, there is another side to this story, on that our Immigration and Refugee Board did not bother to investigate or do due diligence with regard to Brandon Huntley’s claim. According to Ishmael Mnisi, a spokesperson for the African National Congress “Canada's reasoning for granting Huntley refugee status can only serve to perpetuate racism.” Additionally, according to this article “a spokesperson for the South African immigration ministry said Huntley's claims were aimed at tarnishing the good name of black and white South Africans...and were racially motivated.”
“It would have been courteous for the Canadian government to allow the South African government to respond to these claims," Ronnie Mamoepa (A spokesman for the country's Home Affairs department ) said.
A spokesperson for our Canadian immigration board refused to comment on the case Tuesday, citing privacy provisions.
South Africa's national police commissioner denied Wednesday that victims of crime in the country are targeted because of their skin colour.
The irony of this sad situation is that (in an interview published in the Johannesburg daily The Times) “Commissioner Bheki Cele, who is black, said his own home has been broken into a number of times. Criminals in South Africa... look at what you have, rather than looking at your face.” On Tuesday, The Times ran an editorial, lashing out at the decision. "News that Canada has granted a white South African refugee status because his life is in danger at the hands of his black countrymen is shocking and saddening," the editorial said. "It says more about Canadian perceptions than South African reality.”
Iin another another article: http://news.sympatico.ctv.ca/abc/home/contentposting.aspx?isfa=1&feedname=CTV-TOPSTORIES_V3&showbyline=True&date=true&newsitemid=CTVNews%2f20090902%2frefugee_decision_090902 it was stated that “Immigration authorities in England have warned Canada to expect a deluge of young, UNEMPLOYABLE, WHITE SOUTH AFRICANS to arrive in their country after an immigration and refugee panel, made up of white folk who had never been to Africa, bought into former Cape Town resident Brandon Huntley's paranoia and granted him refugee status. "There won't be enough pubs and restaurants in Vancouver and Toronto to employ them all," said an unnamed Home Office source.”
Immigration and Refugee Board of Canada take a look at what is happening to our Canadian economy. Additionally, Canada is riding a tidal wave through the global recession, with thousands of Canadians unemployed, and looking for jobs. These Canadians have been paying taxes, working 9 to 5 jobs in Canada, with little or no help from Canadian social safety net.
What will Brandon Huntley’s future be? According to Brandon’s friend Hannibal Plettervat Brandon Huntley “would probably spend another few years in Canada, at least until he had qualified for a passport and saved some valuable foreign currency. He said that once those initial objectives had been achieved Huntley would probably return home to South Africa, buy a house or a small farm and settle down. "You know, the usual.”
The article continues, “Meanwhile members of the tribunal panel who ruled that "the claimant would stand out like a 'sore thumb' due to his colour in any part of the country,” reacted with shock on hearing that there were in fact a further five million white South Africans still suffering daily persecution. "We thought that maybe there were another hundred white people left," said tribunal spokesperson Alba Snow. "We were ready to send a helicopter to airlift them to safety," she added. Snow admitted that evacuation plans had been put on hold after video footage of Patricia Lewis live in Brakpan had been downloaded from YouTube. "The only person that stood out like a sore thumb in that video was a black sound engineer who looked like he was bleeding out of both ears". She said the tribunal realised they had it all wrong when further investigation revealed that places like Loftus Versfeld, Constantia and the opposition benches in parliament also contained, "more than their fair share of whites.”
In another article by Geoffrey York in the Johannesburg — Globe and Mail Update:
http://www.theglobeandmail.com/news/world/south-africans-refugee-case-causes-backlash-against-racist-canada/article1272553/
Stated that,…… “South Africa's ruling party has denounced Canada as “racist” for granting refugee status to a man who claimed he was persecuted in South Africa because he is white.
The decision by a refugee board member in Ottawa has ignited a firestorm of controversy in South Africa, damaging relations between the two countries and denting Canada's image in a country where it was once seen as a stalwart of the anti-apartheid struggle.
The refugee board member, William Davis, ruled that South Africa had failed to protect its white citizens from robberies and muggings, which he described as the “persecution” of whites by “African South Africans.”
Brandon Huntley, a 31-year-old South African who stayed illegally in Canada in 2006, after first arriving on a work permit as a carnival attendant, was awarded refugee status after complaining that he was mugged and stabbed in seven attempted robberies in South Africa. He said he was called a “white dog” and a “settler” during these attacks, although he did not report any of the attacks to the police because he “did not trust them.”
Mr. Davis said in his ruling that Mr. Huntley would “stand out like a sore thumb” in any part of South Africa because of his colour. He said Mr. Huntley had given “convincing proof” of the government's “inability or unwillingness to protect him.” He added that Mr. Huntley would be unable to find a job in South Africa because of affirmative action in favour of blacks.
The African National Congress, the party that liberated South Africa from apartheid under Nelson Mandela's leadership in 1994, said the refugee decision was racist and alarmist. “Canada's reasoning for granting Huntley a refugee status can only serve to perpetuate racism,” the ANC said Tuesday.
……. While many agree that whites are often targeted by black criminals, others are outraged at the notion that whites are “persecuted” in South Africa, a country where they still enjoy vast privileges in an unequal economic system.
Many ridiculed the board member's claim that whites “stand out like a sore thumb” in South Africa. More than four million whites are living in South Africa, comprising almost 10 per cent of the population…..
“It says more about Canadian perceptions than South African reality. The truth is that the overwhelming majority of crime victims in this country are black and many of the perpetrators are white.”
The chief executive of South Africa's human-rights commission, Tseliso Thipanyane, told the Cape Times newspaper that the refugee ruling was “rather odd” because racist attacks happen to blacks as well as whites. He also rejected the claim that whites cannot get jobs in South Africa, citing a recent survey that found that 61 per cent of South Africa's top corporate executives are white men.
The official unemployment rate for black South Africans is 27.9 per cent, compared to 4.6 per cent for white South Africans.
….. “I will never set my foot in Canada,” commented one person on a South African website, condemning the ruling. “It's officially the most racist country in the world.”
On another website, someone said: “What a load of b.s. Are the Canadians truly this gullible?”
But others said they welcomed the ruling, predicting it would “open the flood gates” to a further exodus from South Africa. “The racism has increased tremendously and whites are not wanted or tolerated here,” one person commented on a newspaper website.
Our Canadian government deems someone a refugee, PLEASE SEE:
(http://www.cic.gc.ca/english/refugees/index.asp)
Refugees
Refugees and people needing protection are people in or outside Canada who fear returning to their home country. In keeping with its humanitarian tradition and international obligations, Canada provides protection to thousands of people every year.
Canada offers refugee protection to people in Canada who fear persecution or whose removal from Canada would subject them to a danger of torture, a risk to their life or a risk of cruel and unusual treatment or punishment.
Groups and individuals can sponsor refugees from abroad who qualify to come to Canada.
Refugee claims in Canada—Who can apply
Canada offers refugee protection to people in Canada who fear persecution and are unwilling or unable to return to their home country. People who are subject to a removal order cannot make a refugee claim.
Eligibility
Some people are not eligible to claim refugee protection in Canada. Officers receiving your refugee claim will decide whether it is eligible for referral to the Immigration and Refugee Board of Canada (IRB), an independent administrative tribunal that makes decisions on immigration and refugee matters. The IRB decides who is a Convention refugee or a person in need of protection. Your refugee claim may not be eligible for referral to the IRB if:
· You have been recognized as a Convention refugee by another country to which you can return;
· You have already been granted protected person status in Canada;
· You arrived via the Canada-United States border (see Safe Third Country Agreement below);
· You are not admissible to Canada on security grounds, or because of criminal activity or human rights violations;
· You made a previous refugee claim that was found to be ineligible for referral to the IRB;
· You made a previous refugee claim that was rejected by the IRB; or
· You abandoned or withdrew a previous refugee claim.
Safe Third Country Agreement
Under an agreement with the United States, refugee claimants must seek asylum (protection) in the first safe country where they arrive. For example, if you entered Canada at a land border from the United States, you will not be able to claim refugee protection in Canada. Sometimes there are exceptions (such as those who already have family in Canada).
Definitions
You may find the following definitions useful as you learn more about refugee claims in Canada.
Convention Refugee
Convention refugees are people who are outside their home country or the country where they normally live, and who are unwilling to return because of a well-founded fear of persecution based on:
· race
· religion
· political opinion
· nationality or
· membership in a particular social group, such as women or people of a particular sexual orientation.
Person in need of protection
A person in need of protection is a person in Canada whose removal to their home country or country where they normally live would subject them personally to:
· a danger of torture;
· a risk to their life; or
· a risk of cruel and unusual treatment or punishment.
Was this decision made without DUE DILIGENCE (KNOWLEDGE) and under a GROUPTHINK MENTALITY?
You decide is if Brandon Huntley is a legitimate refugee of if he is using the Canadian system!!!!!
Wednesday, September 2, 2009
Monday, July 20, 2009
Alleged Quebec financial fraud - Montreal-area planner Earl Jones
It is A CONSTANT in our global society today to read articles about FINANCIAL-PLANNERS AND FRAUD, these two seem to be somehow inseparable. In a recent investigation into one of Quebec’s investment brokerages, and the whereabouts of a broker, as much as $50 million that was entrusted to him seem to have disappeared into thin air. Peter Tzanetakis, vice-president of regulatory affairs at Advocis, the association representing financial advisers in Canada said "The financial advice industry is extremely regulated, financial advisers are typically licensed for insurance purposes and registered for securities and mutual fund purposes, but additional regulation for financial planning would not have any impact on someone who is intending to run a fraudulent scheme."
Please read my blog space:
http://corporategovernanceconcerns.blogspot.com/2008/07/dr-rookmin-maharaj-corporate-governance.html
and my article written in June 2008 about this very serious epidemic that is plaguing not only Canada, but is prevalent around the globe.
The only advise our regulatory bodies can offer include unhelpful remarks as follows:
1) there are plenty of strict guidelines in place already to keep them in check
2) it's a reminder clients need to ask hard questions and avoid blind trust, especially when their life savings are involved
3) The financial advice industry is extremely regulated; financial advisers are typically licensed for insurance purposes and registered for securities and mutual fund purposes
4) additional regulation for financial planning would not have any impact on someone who is intending to run a fraudulent scheme
5) Investors have learned through authorities that Jones, a self-proclaimed financial planner operating in an office tower in a Montreal suburb, was never licensed to handle their money
6) The Financial Planners Standards Council, a not-for-profit organization that raises awareness about financial planning and enforces professional standards through certification, says it's important for consumers to do their homework because anyone can call themselves a financial planner
7) The regulatory environment allows anyone to hold themselves out as a financial planner," said Tamara Smith, vice-president marketing. So it becomes incumbent on the consumer to verify credentials and ask to see certification and references, she said. "It is so important to find a planner you can engage in conversation, that you can trust
8) Sylvain Theberge (representing Quebec's securities regulator - the Autorite des marches financiers )said more inspectors may not be a foolproof solution. "We don't have the ability to be at every door in Montreal, to look at every office," Theberge said, adding more inspectors wouldn't necessarily have led them to Jones. "It's knowing the unknown," Theberge said. "In Mr. Jones' case, he worked for years and years on the basis of a confidence link from generation to generation."
SO WHAT ARE THE ROLES OF THESE SO CALLED REGULATORY BODIES (ABOVE), IF WE, AS EVERYDAY INVESTORS HAVE TO DO THE GROUND WORK FOR THESE SO CALLED REGULATORY BODIES?
REGULATORY BODIES OFFER NO REMEDIES for the average investors, this is a crying shame!
One year ago I wrote about this epidemic. Again, one year later I say the same thing:
It is imperative to note that this fraudulent, unethical behaviour is ALLOWED TO CONTINUE in our society by the pertinent ‘powers’ that be. This fraudulent, unethical behaviour affects families, individuals, and generations to come.
This fraudulent, unethical behaviour may also establish that failures within these companies' corporate cultures and management systems ARE ACTULAY allowed, if not encourage, by key individuals.
Dr. Maharaj argues that:
COULD IT BE THAT THE CONTINUATION OF THE OLD BOYS/GIRLS CLUB may be the fundamental reason for the blatant disregard for humanity? COULD IT BE THAT THERE IS A perception of invincibility/groupthink mentality by these crooks.
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?
And to date we have no remedies from the so called pertinent authorities, whether these watch dog bodies are for-profit or not-for-profit. They have been established to do a job, they are being compensated with some sort of financial consideration. Yet, whenever there is an investigation these ‘so called’ competent authorities’ throw the blame elsewhere. Their only advise to investors include:
“buyer beware” , they take no responsibility!
THE ONLY SOLUTION TO THESE BLATANT INJUDICIOUSNESS include:
changing the behaviours, the regulatory bodies must take responsibility and ensure that they conduct their monitoring duties. Perhaps, the reasons that this is not being done is that the regulatory bodies are not:1) the regulatory bodies are not ‘INDEPENDENT MINDED’
2) the regulatory bodies do not have the knowledge that is required to regulate
3) the regulatory bodies do not have the skills to regulate
This can be achieved by recruiting ‘new regulatory bodies’ in contrast to nominating ‘friends’ and continuing the tradition of the old boys/girls club.
Dr. Maharaj argues that, and has tangible evidence, that what should be done is a forensic audit on 'the people that are hired to these regulatory bodies' What is your opinion? Does your opinion change with this update?
Dr. Rookmin Maharaj’s research on: Corporate Governance on organizations and investigates corporate governance issues from a behavioural viewpoint. It makes a distinction between strict adherence to formal rules and regulations and investigates informal characteristics of regulatory bodies, their knowledge, values, and groupthink mentality.
There are three main conclusions from this research and corporate experience:
1. Proves that formal rules and regulations are inadequate; they have little effect upon decision making.
2. Informal characteristics must be considered in unison with the formal system when incorporating any of these so called watch dog regulatory bodies
3. 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 members’ and managements’ knowledge thereby, affecting these regulators decision making process.
4. 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 these regulatory bodies, are seminal in preventing future fiascoes.
Please read my blog space:
http://corporategovernanceconcerns.blogspot.com/2008/07/dr-rookmin-maharaj-corporate-governance.html
and my article written in June 2008 about this very serious epidemic that is plaguing not only Canada, but is prevalent around the globe.
The only advise our regulatory bodies can offer include unhelpful remarks as follows:
1) there are plenty of strict guidelines in place already to keep them in check
2) it's a reminder clients need to ask hard questions and avoid blind trust, especially when their life savings are involved
3) The financial advice industry is extremely regulated; financial advisers are typically licensed for insurance purposes and registered for securities and mutual fund purposes
4) additional regulation for financial planning would not have any impact on someone who is intending to run a fraudulent scheme
5) Investors have learned through authorities that Jones, a self-proclaimed financial planner operating in an office tower in a Montreal suburb, was never licensed to handle their money
6) The Financial Planners Standards Council, a not-for-profit organization that raises awareness about financial planning and enforces professional standards through certification, says it's important for consumers to do their homework because anyone can call themselves a financial planner
7) The regulatory environment allows anyone to hold themselves out as a financial planner," said Tamara Smith, vice-president marketing. So it becomes incumbent on the consumer to verify credentials and ask to see certification and references, she said. "It is so important to find a planner you can engage in conversation, that you can trust
8) Sylvain Theberge (representing Quebec's securities regulator - the Autorite des marches financiers )said more inspectors may not be a foolproof solution. "We don't have the ability to be at every door in Montreal, to look at every office," Theberge said, adding more inspectors wouldn't necessarily have led them to Jones. "It's knowing the unknown," Theberge said. "In Mr. Jones' case, he worked for years and years on the basis of a confidence link from generation to generation."
SO WHAT ARE THE ROLES OF THESE SO CALLED REGULATORY BODIES (ABOVE), IF WE, AS EVERYDAY INVESTORS HAVE TO DO THE GROUND WORK FOR THESE SO CALLED REGULATORY BODIES?
REGULATORY BODIES OFFER NO REMEDIES for the average investors, this is a crying shame!
One year ago I wrote about this epidemic. Again, one year later I say the same thing:
It is imperative to note that this fraudulent, unethical behaviour is ALLOWED TO CONTINUE in our society by the pertinent ‘powers’ that be. This fraudulent, unethical behaviour affects families, individuals, and generations to come.
This fraudulent, unethical behaviour may also establish that failures within these companies' corporate cultures and management systems ARE ACTULAY allowed, if not encourage, by key individuals.
Dr. Maharaj argues that:
COULD IT BE THAT THE CONTINUATION OF THE OLD BOYS/GIRLS CLUB may be the fundamental reason for the blatant disregard for humanity? COULD IT BE THAT THERE IS A perception of invincibility/groupthink mentality by these crooks.
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?
And to date we have no remedies from the so called pertinent authorities, whether these watch dog bodies are for-profit or not-for-profit. They have been established to do a job, they are being compensated with some sort of financial consideration. Yet, whenever there is an investigation these ‘so called’ competent authorities’ throw the blame elsewhere. Their only advise to investors include:
“buyer beware” , they take no responsibility!
THE ONLY SOLUTION TO THESE BLATANT INJUDICIOUSNESS include:
changing the behaviours, the regulatory bodies must take responsibility and ensure that they conduct their monitoring duties. Perhaps, the reasons that this is not being done is that the regulatory bodies are not:1) the regulatory bodies are not ‘INDEPENDENT MINDED’
2) the regulatory bodies do not have the knowledge that is required to regulate
3) the regulatory bodies do not have the skills to regulate
This can be achieved by recruiting ‘new regulatory bodies’ in contrast to nominating ‘friends’ and continuing the tradition of the old boys/girls club.
Dr. Maharaj argues that, and has tangible evidence, that what should be done is a forensic audit on 'the people that are hired to these regulatory bodies' What is your opinion? Does your opinion change with this update?
Dr. Rookmin Maharaj’s research on: Corporate Governance on organizations and investigates corporate governance issues from a behavioural viewpoint. It makes a distinction between strict adherence to formal rules and regulations and investigates informal characteristics of regulatory bodies, their knowledge, values, and groupthink mentality.
There are three main conclusions from this research and corporate experience:
1. Proves that formal rules and regulations are inadequate; they have little effect upon decision making.
2. Informal characteristics must be considered in unison with the formal system when incorporating any of these so called watch dog regulatory bodies
3. 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 members’ and managements’ knowledge thereby, affecting these regulators decision making process.
4. 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 these regulatory bodies, are seminal in preventing future fiascoes.
Friday, June 26, 2009
View from the top: what directors say about board process
View from the top: what directors say about board process- Dr. Rookmin Maharaj
Title: View from the top: what directors say about board processAuthor(s): Dr. Rookmin MaharajJournal: Corporate GovernanceYear: 2009Volume: 9 -Issue: 3 -Page: 326 - 338Publisher: Emerald Group Publishing LimitedAbstract:Purpose – This paper aims to use the argument that formal regulations alone may not be the defining factor in improving corporate governance and the decision making process of the BOD. Design/methodology/approach – Based on 20 semi-structured interviews with board chairs, members of corporate boards, CEOs, and upper/executive management at 12 Canadian companies, a bird's eye view is taken from the top. A content analysis of the interviews was performed. a clear picture about the interaction and behaviour of directors emerged. Subsequently, three objectives that are required for effective decision-making were developed: knowledge; motivation; and transmission channels/internal control. The analysis offers three critical objectives, which all boards should endeavour to accomplish. Findings – These interviews demystify board process and provide the bases for three critical objectives for effective corporate governance: ascertain and embellish the knowledge base of directors; motivate directors to share and gather information; and ensure clear and fluent transmission channels exist. Practical implications – The usual board measures such as CEO duality, insider and outsider ratio, number of board members and directors' share ownership may not be the only critical determinants of board effectiveness. Originality/value – Conventional notions of decision making have neglected key human faculties and individual characteristics that combine to determine organizational outcomes. This paper fulfils a need for research in the area of board processes and board decision making and provides a roadmap to improve corporate governance within organizations.Keywords: Corporate governance, Decision making, Senior management board decision makingArticle Type: Research paperArticle URL: http://www.emeraldinsight.com/10.1108/14720700910964370
Posted by Dr. Rookmin Maharaj at 7:11 AM
Labels: Corporate governance; Decision making;Senior management; board decision making;
Wednesday, January 28, 2009
Corporate governance decision-making model: How to nominate skilled board members, by addressing the formal and informal systems
Article may be viewed in its entirety at:
http://www.palgrave-journals.com/jdg/journal/vaop/ncurrent/index.html#08012009
Dr. Rookmin Maharaj's 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 (TSX) 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 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 in operating 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 the literature, suggesting there must be a change in executives' values to ensure changes in behaviour.
A corporate governance model was developed. This model helps in ensuring that boards populated with board members who have knowledge and 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 and 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 in order 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 operationalised. What is needed is more balanced research that looks at both the formal and the 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 therefore provides much needed information about the characteristics requisite for nominating board members.
Dr. Rookmin Maharaj's Model can help US President Barack Obama get the United States back on track!!contact Dr. Maharaj : maharajl@netzero.com
http://www.palgrave-journals.com/jdg/journal/vaop/ncurrent/index.html#08012009
Dr. Rookmin Maharaj's 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 (TSX) 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 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 in operating 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 the literature, suggesting there must be a change in executives' values to ensure changes in behaviour.
A corporate governance model was developed. This model helps in ensuring that boards populated with board members who have knowledge and 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 and 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 in order 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 operationalised. What is needed is more balanced research that looks at both the formal and the 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 therefore provides much needed information about the characteristics requisite for nominating board members.
Dr. Rookmin Maharaj's Model can help US President Barack Obama get the United States back on track!!contact Dr. Maharaj : maharajl@netzero.com
Thursday, January 15, 2009
When Governance Bodies Choose to close their eyes!
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
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
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
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