scholarly journals Trustworthy AI and Corporate Governance: The EU’s Ethics Guidelines for Trustworthy Artificial Intelligence from a Company Law Perspective

2021 ◽  
Author(s):  
Eleanore Hickman ◽  
Martin Petrin
Keyword(s):  
Corporate Governance ◽  
Company Law ◽  
General Nature ◽  
Seven Principles ◽  
Starting Point ◽  
Human Autonomy ◽  
Privacy Breaches ◽  
Ethics Guidelines ◽  
The Impact ◽  
A Company

AbstractAI will change many aspects of the world we live in, including the way corporations are governed. Many efficiencies and improvements are likely, but there are also potential dangers, including the threat of harmful impacts on third parties, discriminatory practices, data and privacy breaches, fraudulent practices and even ‘rogue AI’. To address these dangers, the EU published ‘The Expert Group’s Policy and Investment Recommendations for Trustworthy AI’ (the Guidelines). The Guidelines produce seven principles from its four foundational pillars of respect for human autonomy, prevention of harm, fairness, and explicability. If implemented by business, the impact on corporate governance will be substantial. Fundamental questions at the intersection of ethics and law are considered, but because the Guidelines only address the former without (much) reference to the latter, their practical application is challenging for business. Further, while they promote many positive corporate governance principles—including a stakeholder-oriented (‘human-centric’) corporate purpose and diversity, non-discrimination, and fairness—it is clear that their general nature leaves many questions and concerns unanswered. In this paper we examine the potential significance and impact of the Guidelines on selected corporate law and governance issues. We conclude that more specificity is needed in relation to how the principles therein will harmonise with company law rules and governance principles. However, despite their imperfections, until harder legislative instruments emerge, the Guidelines provide a useful starting point for directing businesses towards establishing trustworthy AI.

Quantitative Risk Management Models for Newsvendor Supply Chains

2011 ◽  
pp. 155-170
Author(s):  
Dimitrios Vlachos
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Supply Chains ◽  
Stochastic Environment ◽  
Supply Chain Disruptions ◽  
Supply Chain Networks ◽  
Starting Point ◽  
The Impact ◽  
A Company

As the practices of offshoring and outsourcing force the supply chain networks to keep on expanding geographically in the globalised environment, the logistics processes are becoming more exposed to risk and disruptions. Thus, modern supply chains seem to be more vulnerable than ever. It is clear that efficient logistics risk and security management emerges as an issue of pivotal importance in such competitive, demanding and stochastic environment and is thus vital for the viability and profitability of a company. In this context, this chapter focuses on a set of stochastic quantitative models that study the impact of one or more supply chain disruptions on optimal determination of single period inventory control policies. The purpose of this research is to provide a critical review of state-of-the-art methodologies to be used as a starting point for further research efforts.

scholarly journals ANALYSIS OF THE IMPACT ON ACCOUNTING IN THE PROCESS OF IMPLANTING CORPORATE GOVERNANCE WITHIN A COMPANY

2010 ◽  
Vol 2 (3) ◽  
Author(s):  
Omeri Dedonatto ◽  
Ilse Maria Beuren
Keyword(s):  
Corporate Governance ◽  
The Impact ◽  
A Company

Um conceito recorrente tem sido o de governança corporativa, entendido como o conjunto de práticas e regras, de natureza jurídica, social e econômica, que estabelece o relacionamento e regula o conflito entre os diversos segmentos envolvidos nas atividades das companhias, com ênfase na proteção dos interesses dos acionistas. Assim, o artigo objetiva analisar os impactos para a contabilidade no processo de implantação da governança corporativa em uma empresa. Os procedimentos metodológicos adotados caracterizam a pesquisa como exploratória com abordagem qualitativa, realizada por meio de um estudo de caso em empresa que implantou a governança corporativa. Os resultados da pesquisa mostram os impactos para a contabilidade no processo de implantação da governança corporativa na empresa. Os impactos na contabilidade foram relativamente pequenos, haja vista que uma melhor estruturação demandaria maior volume de investimentos em pessoal especializado, consultorias, equipamentos e sistemas de informações.

The impact of corporate governance mechanisms on earning management: Literature review and proposing framework

2012 ◽  
Vol 2 (1) ◽  
pp. 134
Author(s):  
Ebraheem Saleem Salem Alzoubi ◽  
Mohamad Hisyam Selamat
Keyword(s):  
Corporate Governance ◽  
Conceptual Framework ◽  
Financial Reporting ◽  
Audit Committee ◽  
Research Study ◽  
Senior Management ◽  
Earning Management ◽  
Starting Point ◽  
Governance Practices ◽  
The Impact

This research study seeks to come up with a conceptual framework that investigates the different mechanisms of corporate governance and its effects on earning management (EM). This is to help build a conceptual framework of governance practices and its mechanisms, which mainly consists of board of directors and audit committee. To build the conceptual framework, the background of governance practices and EM theory served as a good starting point. The current research study is based on the complete assessment of present literatures, the two mechanisms of governance practices and EM. This paper serves as a guide to senior management, who seeks to improve their company’s financial reporting quality (FRQ) through the execution of governance practices, in which the governance practices support their company’s FRQ efforts. Furthermore, the conceptual framework serves as a benchmark for practitioners to execute their governance practices more effectively and efficiently in their own respective firms. This paper seeks to close the gap on the existing literature, by giving guidance to the senior management of governance practices companies that aspires to discover the competency of EM. By developing a deeper understanding of the relationship between corporate governance practices and EM, senior management can thus focus their efforts on the practices that ensure the firms’ ability to establish a competitive FRQ.

scholarly journals CORPORATE GOVERNANCE AND BUSINESS PERFORMANCE: EVIDENCE FOR THE ROMANIAN ECONOMY

2015 ◽  
Vol 17 (3) ◽  
pp. 458-474 ◽  
Author(s):  
Monica-Violeta ACHIM ◽  
Sorin-Nicolae BORLEA ◽  
Codruţa MARE
Keyword(s):  
Corporate Governance ◽  
Business Performance ◽  
Stock Exchange ◽  
Policy Makers ◽  
Governance Practices ◽  
Corporate Governance Practice ◽  
Corporate Governance Quality ◽  
The Impact ◽  
A Company

Our finding contributes towards the understanding of movements regarding the adoption of corporate governance practice in emerging countries such as Romania and its impact on business performances of a company. We have developed two econometric models to assess the business performances of the companies listed on Bucharest Stock Exchange, in order to point out the impact of corporate governance on business performances. Our results are inconsistent for the period 2001–2011, but if we consider only 2011, the results document a positive correlation between corporate governance quality and market value of companies, such it is reflected by Tobin’s Q. Therefore, our results contribute to the studies relating corporate governance and business performances, as it confirms a positive relationship between the two variables which appears once the Romanian emerging economy has began to adopt the best corporate governance practices. Firstly, our research has important implications for managers in order to know that the adoption of the best corporate governance practices could contribute to the financial success of the firm. Secondly, the results are useful for any investor who needs to consider the quality of corporate governance as a good predictor for the best rate of return of theirs investments. Moreover, our findings have also implications on policy-makers and regulatory authorities in European developing countries and offer them a barometer of adopting the best corporate governance practices in European space.

scholarly journals Impact of equity and debt financing on financial performance of quoted manufacturing companies in Nigeria

2020 ◽  
Vol 3 (2) ◽  
pp. 64-76
Author(s):  
Bibiana Njogo ◽  
◽  
Jaiyeoba Oladele ◽  
Oladotun Mabinuori ◽  
◽  
...  
Keyword(s):  
Corporate Governance ◽  
Empirical Studies ◽  
Negative Relationship ◽  
Secondary Data ◽  
Debt Financing ◽  
Least Square ◽  
Manufacturing Companies ◽  
Earnings Per Share ◽  
The Impact ◽  
A Company

Empirical studies have shown that equity and debt financing is one of the important determinants affecting the performance of a company. This study sought to examine the impact of equity and debt financing on performance on quoted manufacturing companies in Nigeria using the Panel Fully Modified Least Square on secondary data on earnings per share, debt and equity covering the period 2010-2018. To increase earnings, findings show that equity positively influences earnings per share while a negative relationship exists between earnings per share and debt. The study recommends that firms should finance their company majorly with equity shares rather than debt. KEY WORDS: Corporate governance, Equity, Debt, Earnings per share, and Firm’s performance.

scholarly journals REPRESENTATION OF A COMPANY WHEN CONTRACTING WITH ANOTHER PERSON UNDER SOUTH AFRICAN COMPANY LAW Makate v Vodacom (Pty) Ltd [2016] ZACC 13

Obiter ◽  
2018 ◽  
Vol 39 (2) ◽  
Author(s):  
Vela Madlela ◽  
Palollo Michael Lehloenya
Keyword(s):  
Board Of Directors ◽  
South African ◽  
Company Law ◽  
Third Party ◽  
Constitutional Court ◽  
Legal Nature ◽  
The Board Of Directors ◽  
The Law ◽  
The Impact ◽  
A Company

A company is an artificial person and has no mind, will or hands of its own. It is, therefore, compelled to act through human agents. The board of directors is responsible for the management and direction of the business affairs of the company. Under South African company law the directors’ powers of management are statutorily entrenched (S 66(1) of the Companies Act 71 of 2008). The board of directors may, however, delegate its powers to an individual director (or individual directors), a committee of the board, a managing director or other officers of the company. Before an individual director or officer of the company can conclude a binding transaction on behalf of their company, they must have the authority to do so. In South Africa, the issue of authority to enter into a transaction or agreement on behalf of a company is dealt with using the principles of the law of agency.The crisp issue in this note relates to the circumstances in which an individual company director or officer who, when contracting with another person, purports to be acting on behalf of the company will bind the company. In the recent case of Makate v Vodacom (Pty) Ltd ([2016] ZACC 13 (hereinafter “Makate v Vodacom”)), which involved a claim for reasonable compensation by the inventor of the concept of “Please Call Me” against Vodacom (Pty) Limited (hereinafter “Vodacom”), the Constitutional Court dealt specifically with the authority of a director to conclude a contract with a third party on behalf of the company. This note discusses Makate v Vodacom and the approach of the court regarding when a company will be bound by contracts concluded by its director or another person purporting to represent the company in a transaction with a third party. It examines the main judgment of Jafta J and the concurring judgment of Wallis J in relation to the legal nature of ostensible authority in the absence of actual authority.The note further looks at the issue of prescription, which Vodacom in its defence raised against the claim for compensation brought by Mr Makate. It explores the circumstances in which prescription can be successfully invoked to deflect a contractual claim brought against a company, the impact of the Constitution in this area of the law and whether the claim lodged by Mr Makate amounted to a “debt” for purposes of the Prescription Act (68 of 1969). To this end, again, both the main judgment of Jafta J and the concurring judgment of Wallis J are examined. This is followed by critical insights on the implications of this case and some concluding remarks.

The Spanish and the European Codification of the Business Judgment Rule

2018 ◽  
Vol 15 (1) ◽  
pp. 41-68 ◽  
Author(s):  
Luis Hernando Cebriá
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Common Law ◽  
Comparative Law ◽  
Common Reference ◽  
Business Judgment Rule ◽  
Starting Point ◽  
The Impact ◽  
Specific Section

Different Model Acts and national approaches to the Business Judgment Rule, some by means of its codification, others through the requirements to be considered when delimiting the directors’ responsibilities, have tried to give a better orientation to the positions assumed by directors when they have to deal with business affairs on behalf of the company. Even in cases where there is not a specific section in internal law, the Business Judgment Rule is a common reference in many jurisdictions when the circumstances and elements of directors’ decision-making are considered. In Spain, Law 31/2014, of December 3, to improve corporate governance, has codified the “protección de la discrecionalidad empresarial” in Article 226 of Ley de Sociedades de Capital, assuming the developments of the Business Judgment Rule in other jurisdictions. However, international principles and Model Acts, and other European jurisdictions, such as Germany, do not face codification of the Rule in the same way, and even consider differently requirements for its application. This paper discusses, through the approaches in Comparative law, particularly in other areas where the Business Judgment Rule has a greater tradition, the impact that the codification of the “protección de la discrecionalidad empresarial” may have in Spanish corporate governance. To this end, the paper focuses on the scope of this singular protection on directors’ discretion, as well as on the requirements for its application, which shall serve at last to provide judges with a useful tool to decide on business matters where directors’ responsibility is involved. Comparison with Common Law and more recently with other European approaches is a starting point to critically check whether Spanish systematization avails of the dynamics of the Rule in order to improve and properly coordinate the whole system of corporate governance.

scholarly journals Role of Independent Director under Corporate Governance Process

2019 ◽  
Vol 8 (3) ◽  
pp. 8557-8559
Keyword(s):  
Corporate Governance ◽  
Executive Director ◽  
Company Law ◽  
Independent Director ◽  
Governance Process ◽  
A Company

According to company law 2013 an independent director in view of a company and in relationship to the board can be said as a director other than the Managing or whole time or a nominee director and in the context of corporate governance an independent director is a non-executive director whose main aim is to help company in improving credibility in the eyes of stake holders with a prescribed set of standards and a set of principals laid for governing the board. The present paper is concerned with the role of Independent Director as part of company in corporate governance process and the importance of each in board

Board stoops to conquer the CEO: end of a power struggle

2018 ◽  
Vol 8 (2) ◽  
pp. 1-36
Author(s):  
P. Rameshan
Keyword(s):  
Corporate Governance ◽  
Strategic Management ◽  
Corporate Ethics ◽  
Senior Executives ◽  
Power Struggle ◽  
Content Type ◽  
Organizational Behaviour ◽  
Board Dynamics ◽  
The Impact ◽  
A Company

Subject area The case would be specifically useful in courses related to Corporate Governance, Board Dynamics, Leadership, Organizational Behaviour, Corporate Ethics and Strategic Management. Study level/applicability For Post-graduate/Doctoral and Executive Programme/Management Development Programme level courses in Corporate Governance, Board Dynamics, Leadership, Organizational Behaviour, Corporate Ethics and relevant areas of Strategic Management. Case overview The case relates to the imminent departure of Raamit Pell, the founding CEO of Xcelent Services, an educational service provider, to his parental organization at Kozerton after completing his current five-year term. Raamit had moved from Kozerton to become CEO of Xcelent Services. Many of Raamit’s senior executives at Xcelent were not happy about his decision to return. They felt that his departure at this moment might, on the one hand, slow down the ongoing major expansion plans and on the other aggravate a mutiny, under covert Board patronage involving a powerful clique of certain senior executives. The parental agency finally agreed to release him. On the day of Raamit’s farewell, where surprisingly even the clique members were present, many executives appeared sad. Observing the mood, Raamit wondered whether his decision to return to Kozerton was the right one. Expected learning outcomes To understand the internal governance, leadership and behavioural environment of a company. To understand the impact of internal power equations of a company on the morale of its people. To analyze both the inconsistency between the stated goals of the organization and the revealed actions of its top decision-makers; and the lack of restraint on the power struggle among the top actors of the organization. To identify effective strategies for addressing such issues in future so that their fallouts would be minimized. To relate the behaviour in an organization to the organizational behavioural theories related to leadership, corporate governance, corporate ethics, managerial behaviour and agency problems. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 11: Strategy.

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