Ethics-Corporate Governance &...

Ethics , Corporate Governance and Socially Responsible Investment

Word Count : 2825

by

Student I .D

Course

Instructor

15 May 2010

Ethics , Corporate Governance and Socially Responsible Investment

Part A : Requirement 1

According to Okoth (n .d , independence of non-executive directors means that they do not have any conflicts of interest within and beyond the company . Thus , they monitor and are able to resolve conflicts of interest which affect the wider company , for instance , directors remunerations and successions in the board (Higgs 2002 ,

.4 . The European Commission

is of the view that the independent nature and experience of non-executive directors is able to resolve conflicts of interest arising among executives , e .g , remuneration and the audit of company accounts . Further , the commission recommends that independence must address interlocking directorships ' and mandates (European Commission 2004 ,

.2 . Because they do not participate in the day to day running of the company , they are de-linked from executive responsibility consequently , they monitor performance and improve accountability (Higgs 2002 ,

.1 , set strategy , policy , and financial goals (Okoth n .d

These attributes of independence are appropriately expressed at British Airways . The non-executive directors monitor finances and manage risk They determine the remuneration of executive directors and have access to company information , customers , employees , and shareholders (British Airways 2010 ,

.56 . In addition , non-executive directors and the chairman meet without the presence of executive directors . To curb impartiality , they are re-elected every three years and an external financial audit is conducted every year . However , the management...