Iscussion Questions( corporate governance& ethics)

Question 1: Ferrell, Fraedrich and Ferrell (2008, p. 18) identify a number of  rewards for businesses
engaging in ethical behaviour. Discuss one of these rewards and give an example not included in your
text. (3 marks)
Question 2: Define corporate governance in your own words. Which model of corporate governance
(the shareholder or stakeholder model) is more closely aligned with your definition? Justify your
answer. (3 marks)
Question 3: What is a conflict of interest? Why are conflicts of interest considered a business ethics
issue? Provide an example of a conflict of interest not included in your text. (3 marks)
Question 4: The United States adopted a legislative approach to corporate governance reform with the
enactment of the Sarbanes Oxley Act whereas Australia adopted a  comply or explain approach in the
ASX Corporate Governance Principles and Recommendations. Compare and contrast the legislative
and  comply and explain approaches to corporate governance. Which approach do you believe is best?
Explain your answer. (3 marks)
Question 5: What is a non-executive director? What is an  independent non-executive director?
Why would independent non-executive directors be useful in good corporate governance?
(3 marks)
Question 6: Define virtue ethics in your own words. Identify and briefly discuss two virtues you
possess which may support your business or study environment (these are listed in Table 6-2, Ferrell,
Fraedrich and Ferrell (2008, p. 158)). Provide an example of how your two virtues have supported or
may support your business or study environment. (5 marks)