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Setting the benchmark in corporate integrity

Internal Controls Turkish companies must match Zorlu Enerji’s transparent and responsible business model in order to boost investor confidence in the region

Energy company Zorlu Enerji set to transform Turkey’s fortunes

Turkish companies must match Zorlu Enerji’s transparent and responsible business model in order to boost investor confidence in the region

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Internal Controls After having acquired a significant stake in China’s leading car-rental company, Hertz look to reconfigure the means by which its Chinese-based operations are conducted

Hertz to restructure Chinese expansion measures

After having acquired a significant stake in China’s leading car-rental company, Hertz look to reconfigure the means by which its Chinese-based operations are conducted

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Internal Controls Banks must reassess their internal governance structures, writes Simon Johnson

Boards on their backs

Banks must reassess their internal governance structures, writes Simon Johnson

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Video With more sectors following the trend of establishing separate legal bodies for charitable activities, what are the real benefits?

The growing popularity of corporate foundations

With more sectors following the trend of establishing separate legal bodies for charitable activities, what are the real benefits?

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Annual Reports German trade groups resist proposed EU legislation to provide more detailed information on social issues in annual reports

Germany rejects EU transparency plans

German trade groups resist proposed EU legislation to provide more detailed information on social issues in annual reports

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Incentives & Remunerations Salaries and bonuses might have become more muted, with CEOs enjoying more fringe benefits

Perks and fringe benefits grow for C suite

Salaries and bonuses might have become more muted, with CEOs enjoying more fringe benefits

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Video Corporate Governance Report interviews international migration expert Sophie Barrett-Brown on the value of immigrants to UK corporations

Keeping up with UK immigration rules | Sophie Barrett-Brown| Video

Corporate Governance Report interviews international migration expert Sophie Barrett-Brown on the value of immigrants to UK corporations

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Corporate Social Responsibility The widespread criticism directed at Nike through the 90s has instilled a deep-seated culture of ethics at the corporation, most notably in its pursuit of a bettered CSR program

Nike’s new ethics paint new corporate identity

The widespread criticism directed at Nike through the 90s has instilled a deep-seated culture of ethics at the corporation, most notably in its pursuit of a bettered CSR program

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Boardroom & C Suite More American firms are moving away from the once popular dual management position. JPMorgan and Hess Corp’s boards move towards separate roles as they look to appease shareholders

US companies call for roles to be separated

More American firms are moving away from the once popular dual management position. JPMorgan and Hess Corp’s boards move towards separate roles as they look to appease shareholders

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Corporate Social Responsibility US attorney general orders FBI criminal probe into growing scandal at Internal Revenue Services

FBI in criminal probe of “biased” tax agency

US attorney general orders FBI criminal probe into growing scandal at Internal Revenue Services

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Investor Relations The Spanish government has revealed a special fund to help over 700,000 investors who were mis-sold preference shares by troubled lenders

Spanish banks to pay for mis-sold preferential shares

The Spanish government has revealed a special fund to help over 700,000 investors who were mis-sold preference shares by troubled lenders

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Internal Controls Poor internal auditing systems can cost companies a lot of time and money, but they can be difficult to perfect and maintain

The cost of oversight and poor error handling

Poor internal auditing systems can cost companies a lot of time and money, but they can be difficult to perfect and maintain

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Boardroom & C Suite Females sitting on boards of directors are more prepared to use their initiative than their male counterparts when it comes to decision making, creating better corporate leaders, according to a new study

Male-only boards “short-change investors”

Females sitting on boards of directors are more prepared to use their initiative than their male counterparts when it comes to decision making, creating better corporate leaders, according to a new study

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Auditing Policies The bank‘s gross insufficiencies have recently been unearthed as entirely incompetent in light of a previously confidential, though no less damning, report by Group Internal Audit

98% of RBS mortgage advice fails quality test

The bank‘s gross insufficiencies have recently been unearthed as entirely incompetent in light of a previously confidential, though no less damning, report by Group Internal Audit

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The many faces of auditing

Both mandatory and discretionary, auditing comes in many guises

1 Integrated

A necessary undertaking for public companies, an integrated audit entails the auditing of both financial statements and internal control over financial reporting. Necessarily conducted by an external auditor, integrated audits are advantageous in that they encourage a holistic approach to the internal auditing process.

2 Performance

Conducted by either an asset manager or an outside firm, a performance audit verifies performance figures with those demonstrated to the public. Beneficial in that a performance audit allows an accurate insight into a firm’s returns.

3 Quality

Quality audits entail the systematic examination of a quality system, undertaken by either an internal or external quality auditor. Quality audits are integral in determining compliance with a defined quality system process and are a necessary requirement in maintaining the ISO quality system standard.

4 Regular health checks

Regular health check audits are carried out for purposes in understanding the present state of a specific project. Primarily conducted by an independent party, regular health checks are intended to further increase productivity or otherwise effectiveness.

5 Energy

Energy audits consist of an inspection, survey and analysis of energy consumption. Largely intended for the bettering of energy conservation, input is often sought to be reduced though without the hindering of subsequent output. Energy audits are largely meant for reducing overheads.

6 Regulatory

Otherwise termed financial, regulatory audits are intended for assessing the legality of processes pertaining to financial operations. Encompassing management, collections and expenditure, regulatory audits seek to determine a true and fair representation of policy and financial management.

Community spirit

Research has shown that companies giving back to the communities in which they work tend to enjoy better long-term results

1 IBM

An organisation famed for valuing innovation and entrepreneurship, IBM helps its employees to give back to the community in the way they best see fit. IBM distributes Activity Kits, each one designed around different volunteering opportunities. For those who want to use their expertise to help educate others, there are kits advising on how to conduct workshops for adults who want to get into the industries IBM operates in. Employees wanting to inspire future generation can use kits to engage children in workshops that see students make anything from paper dog houses to solar-powered model cars. Or those who prefer a more hands-on approach they can volunteer to help in disaster zones.

2 Ford

According to Henry Ford, “A business that makes nothing but money is a poor business”. This inspired Ford’s Accelerated Action Day in 2012, which saw more than 600 employees in American branches step away from their desks to work in local community projects, supported by various charities. Volunteers were dispatched to shelters, schools and family centres, helping to clean, paint and build in their on-going renovation missions. Projects included renovating shelter rooms for the Salvation Army’s centre in Detroit, building houses with Habitat for Humanity and creating therapy rooms for children with the First Step Domestic Violence Program.

3 JP Morgan

JP Morgan engages in many community projects globally, but recent years have seen emphasise focused on improving education on both sides of the Atlantic. Last year they helped to fund Achieve Together, a drive to recruit and inspire good teachers in disadvantaged areas of the UK. The first phase of the programme will roll out later this year, estimating to help 8,000 pupils. 2010 saw the firm launch a $325m initiative to support publically-funded schools in the US. The company granted $50m to community-development financial institutions to support new schools, as well as helping to tackle the financial problems of schools that already have a strong academic track record to keep them afloat.

4 Coca-Cola

5by20 is Coca-Cola’s initiative to empower five million female entrepreneurs worldwide by 2020. The multinational aims to focus its efforts on the small businesses across the world, currently focusing on Brazil, South Africa, the Philippines and India, by providing training with financial resources and mentors to women looking to get ahead in business. Since launching the program in 2010, Coca-Cola claim to have economically enabled more than 131,000 women. As part of the program, a new initiative in Kenya has helped female farmers grow mangoes for locally sold fruit juices, which has in turn helped create sustainable livelihoods around the farms.

5 Johnson and Johnson

As part of Johnson and Johnson’s No More Tears brand’s 50th anniversary, its Clean Water Initiative was launched as a combined effort with non-profit charity Water for People. Operating under the slogan “Because every baby deserves clean water”, the program has aided small, rural communities in ten of world’s poorest countries, including Malawi and West Bengal to tackle water contamination. The charity not only educates communities but also installs sanitation facilities in schools to provide clean water to hundreds of thousands of children.

Corporate Governance Report interviews international migration expert Sophie Barrett-Brown on the value of immigrants to UK corporations

Keeping up with UK immigration rules | Sophie Barrett-Brown| Video

Corporate Governance Report interviews international migration expert Sophie Barrett-Brown on the value of immigrants to UK corporations

Corporate Governance Report interviews international migration expert Sophie Barrett-Brown on the value of immigrants to UK corporations

The value of immigrants to the UK economy | Video

Corporate Governance Report interviews international migration expert Sophie Barrett-Brown on the value of immigrants to UK corporations

Corporate Governance Report interviews CapitaLand CFO Arthur Lang on the impact of corporate governance on Asia's real estate industry and investment

Arthur Lang: How corporate governance has affected Asia’s real estate market | CapitaLand | Video

Corporate Governance Report interviews CapitaLand CFO Arthur Lang on the impact of corporate governance on Asia’s real estate industry and investment

News

RBS shareholders file suit against bank and former directors

RBS shareholders have launched a class-action suit over the 2008 rights offering a few months before the bank was bailed out by British government

EU seek bloc-wide corporate governance laws

The European Corporate Governance and Company Law Conference looks to somewhat bolster shareholders’ duties and rights across the EU in protecting against corporate misgivings

UAE discusses role of CSR in sustainable development

Philanthropy and sustainability debated at forum arranged by UAE’s University Leadership Council

Poor governance: a tax on Russia’s innovative companies

Recent reports reveal the extent to which investment is hindered by poor governance in Russia, and outlines the ways in which it can be combated

Strategic CSR stops small companies being overshadowed

The 2013 Ethics and Leadership Conference has highlighted the need for companies within the same industry to group together to exercise their corporate social responsibility

Pay ratio disclosure leaves directors unconvinced

The SEC’s recent pay ratio proposal has given rise to criticism and suggestions that it is an ineffective way of curbing excessive executive pay

Carl Icahn gives Apple a boost

Apple’s market value rose by an estimated $17bn after billionaire investor Carl Icahn tweeted his support for the company. Shares have since hit a seven-month high

Commission propose fundamental changes to German Corporate Governance

The Government Commission for the German Corporate Code has, in February of this year, proposed a series of changes it believes will greatly improve the current upholding of corporate governance

Investors want sustainable reports to be more transparent

Survey finds that a vast majority of investors in Europe find sustainable reporting essential to their investment decisions