2. Assessment Brief
2.1. Case Study
1. The recent scandal involving the use of ‘defeat devices’ by Volkswagen has highlighted the company’s approach to corporate governance.
a) Discuss to what extent the Volkswagen scandal reflected the principles of good corporate governance. (12 marks)
b) Evaluate whether the UK approach to corporate governance as expressed in the UK Corporate Governance Code would have prevented the problems which Volkswagen experienced. You should reach a conclusion. (16 marks)
Total for Requirement 1: 28 marks
2. The UK Government wishes to help the UK shipping industry by producing some illustrative guidance on risk management. You have been asked to draft this guidance. From the perspective of a company that operates a global fleet of freight carrying ships
a) Identify and explain the risks such a company could face. (8 marks)
(You should identify no more than 8 risks, which should be specific to the shipping industry).
b) Profile the risks on a 3 x 3 grid, justifying your answer. (8 marks)
c) Explain how your identified risks should be managed both in terms of the TARA model and practical control activities. Your practical controls should not be restricted to the ‘reduce’ section of TARA. (12 marks)
Total for Requirement 2: 28 marks
3. The UK Government recently accepted a tax payment from Google of £138m.
a) Discuss which level of Kohlberg’s model Google was demonstrating in agreeing to make the payment. (21 marks)
b) Google is one of several companies criticised for using tax legislation to minimise its tax liabilities. From the perspective of Google, use Tucker’s Five Questions to evaluate the Google’s decision to pay tax in the UK. Your discussion should make reference to real life examples. (15 marks)
Total for Requirement 3: 36 marks
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Assignment Part
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Mark
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Approach
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Requirement 1
a) Discuss to what extent the Volkswagen scandal reflected the principles of good corporate governance.
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12
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You will then need to select relevant principles of corporate governance and make it clear why you think they are relevant and in what sense Volkswagen reflected or did not reflect those principles. Justify your comments by reference to events.
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b) Evaluate whether the UK approach to corporate governance as expressed in the UK Corporate Governance Code would have prevented the problems which Volkswagen experienced, reaching a conclusion.
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16
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You will need to identify relevant principles and guidance from the UK Corporate Governance Code. Remember ‘evaluate’ means you should see both sides of an argument. Remember to reach a conclusion.
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Requirement 2
a) Identify and explain the risks such a company could face.
(You should identify no more than 8 risks, which should be specific to the shipping industry).
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8
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You will need to do some research to find risks in the shipping industry. They need to be risks that you can use through parts b and c too.
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b) Profile the risks on a 3 x 3 grid, justifying your answer.
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8
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Try to avoid risks that would all go in the same grid position – get a range of risks.
The placing of the risks is subjective – credit will be awarded on how convincingly you justify the placing, not because the answer is ‘correct.’
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c) Explain how your identified risks should be managed both in terms of the TARA model and practical control activities.
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12
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‘Practical controls’ means specific controls that could be implemented on the basis of what you have written.
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Requirement 3
a) Discuss which level of Kohlberg’s model Google was demonstrating in agreeing to make the payment.
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21
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This will involve considering each of the six levels though you may not have the word count to discuss all levels in detail. There may be arguments for and against each level. You should make reference to real world examples.
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b) Google is one of several companies criticised for using tax legislation to minimise its tax liabilities. From the perspective of Google, use Tucker’s Five Questions to evaluate the Google’s decision to pay tax in the UK. Your discussion should make reference to real life examples.
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15
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Report in a format suitable for presentation to the company board.
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8
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You will need to put your submission into a professional business format, which would include an executive summary, introduction, clearly marked sections, headings and paragraphs. There will be credit for appropriate use of appendices (which can include not using them at all).
All research undertaken needs to be appropriately referenced using the Harvard Referencing System.
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Total
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100
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