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Remuneration committee role 3 začať sa učiť
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To have an appropriate reward policy, | that attracts and motivates directors, | to achieve the long-term interest of shareholders.
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NEDs remuneration characteristic: 3 začať sa učiť
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Consist of a basic salary and sometimes share awards | equity-based remuneration should be fully vested on the grant date, but still subject to applicable holding periods | performance measures remuneration not generally supported
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Remuneration - Company strategy dependence 3 začať sa učiť
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Amount depends on company resources. | Remuneration levels in comparable companies. | Conditions throughout the company.
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Remuneration level is determined by: 2+2 začať sa učiť
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Job description. | Significant proportion based on performance related elements. | Not too small – could lead to lack of motivation and underachievement | Not to easily earned to ensure that directors to improve performance to attract and possibly motivate if increase with performance
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Institutional shareholder intervention due to strategy - examples of concerns: 3 začať sa učiť
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products sold. | markets serviced. | expansion developing.
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Institutional shareholder intervention due to Internal controls examples 3 začať sa učiť
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failure in health and safety. | quality control. | budgetary control.
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Institutional shareholder intervention due to Operational performance začať sa učiť
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in terms of divisions within the corporate structure that have persistently under-performed.
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Institutional shareholder intervention due to Remuneration policy might relate to...? 2 začať sa učiť
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to a failure of the remuneration committee. | to self-serving executive rewards. self-serving - wyrachowany
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Institutional shareholder intervention due to Acquisitions and disposal začať sa učiť
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When executive decisions that have been inadequately challenged by NEDs.
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Institutional shareholder intervention due to Succession planning 2 začať sa učiť
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A failure to adequately balance board composition. | Or recommendation of replacement executives without adequate quality of the candidate.
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Institutional shareholder intervention due to Social responsibility example: 1 začať sa učiť
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A failure to adequately protect to instances of environmental contamination.
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2 začať sa učiť
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development that meets the needs of the present, | without compromising the ability of future generations.
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Sustainability is an attempt to provide the...? 3 začať sa učiť
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_the best outcomes | for the human and natural environments | both now and into the indefinite future.
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Environmental footprint – an attempt to evaluate the size of a company’s impact on the environment in 3 respects: 3 začať sa učiť
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Consumption of resources. | Pollution emissions impact on environment. | Measurement of both in terms of harm to the environment.
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Social footprint – evaluates sustainability in three areas: 3 začať sa učiť
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Human capital. | Social capital. | Constructed capital
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Social footprint - Human capital začať sa učiť
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Peoples health, | Skills, | Motivation. to take effective action.
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Social footprint - Social capital basics: 3 začať sa učiť
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Networks of people.| The mutually-held knowledge and skills... | _they have in order to take effective action.
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Social footprint - Constructed capital examples: 4 začať sa učiť
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tools | technologies | roads | infrastructures. _that people produce and use in order to take effective action.
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Environmental reporting - generic meaning začať sa učiť
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The disclosure of information on environment related issues and performance by an entity.
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Environmental reporting typically contains details of environmental performance in areas such as: 2 začať sa učiť
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Measures of emissions. | Consumption of resources. Like pollution, waste and greenhouse gases. | Such as energy, water and non-renewable mineral deposits.
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Drawback of social and environmental reporting 2 začať sa učiť
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Additional cost of reporting systems | ambiguity of measures used
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Integrated reporting demonstrates the linkages between...? 2 začať sa učiť
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_between an organisation’s governance | and the social and environmental context within which it operates.
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Integrated reporting can help business to take...? 2 začať sa učiť
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To take more sustainable decisions. | To enable investors and other stakeholders to understand how an organisation is really performing.
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Integrated reporting should be a single report which is not...? začať sa učiť
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IR is not mandatory in most jurisdictions. An integrated report could contain FS information, in which case the IR would fulfil statutory requirements whilst containing lots of other stuff that might be reasonable and useful... or which might be a waste of paper.
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Central to Integrated Reporting is the challenge facing organisations to create and...? začať sa učiť
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_sustain value in the short, medium and longer term.
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An integrated report is a concise communication about...? 3 začať sa učiť
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_about how an organisation’s governance, | in the context of its external environment, | lead to the creation of value.
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3 začať sa učiť
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Institutions such as families | communities | businesses.
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2 začať sa učiť
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Natural resources. | Also the capacity of the world’s carbon sinks — (forests and oceans) — to absorb the waste generated by economic activity. 1. E.g. iron ore, water, oil
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Material goods or fixed assets which contribute to the production process rather than being the output itself – e.g. tools, machines and buildings.
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4 začať sa učiť
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Brands. | R&D. | Reputation. | External relationships. Proprietary information, also known as a trade secret, is information a company wishes to keep confidential. It may can include secret formulas, processes. It can also include a company's business and marketing plans, salary structure or customer lists.
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IR - Annual and intercompany comparability začať sa učiť
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The information in the integrated report should be presented on a basis that is consistent over time and in the way that it enables comparison with other organisations.
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IR – Orientation to future and strategy. Highlighting...? začať sa učiť
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Highlighting significant risks and opportunities flowing from the organisation’s market position and business model.
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IR – Stakeholder relationship 1 začať sa učiť
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It should provide insight into quality of the organisation’s relationships with its key stakeholders.
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1 začať sa učiť
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Identifying matters with ability to affect value creation.
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IR - Conciseness (Shortness) 3 začať sa učiť
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Should give sufficient context, | to understand the organisation’s strategy and prospects | without being burdened by less relevant information.
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Reliability and completeness. IR should include all material matters, both...? začať sa učiť
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_both positive and negative, in a balanced way.
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The AIDA Model identifies cognitive stages an individual goes through during the buying process for a product or service. It's a purchasing funnel where buyers go to and fro at each stage, to support them in making the final purchase. začať sa učiť
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Awareness | Interest | Desire | Action
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Integrated reporting - value creation process 3 začať sa učiť
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Value is created through a business model, | which takes inputs from the capitals and transforms them into outputs. | Over time it creates (or destroys) value for its stakeholders.
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Who should implement a sound system of internal controls? začať sa učiť
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Who is ultimately responsible for internal control system? začať sa učiť
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Who advise on establishing and monitoring internal controls? začať sa učiť
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Who need to establish specific internal control for each business unit? začať sa učiť
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Who need to evaluate the effectiveness of internal controls and recommend improvements? začať sa učiť
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Who need to set corporate governance policy in respect of internal control procedures? začať sa učiť
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What stakeholders are involved in risk management and internal control? začať sa učiť
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CEO | Board of directors | Risk committee | Executive management | Internal auditors | Unit heads | All employees | External auditors
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Attempt to ensure that risks are minimised
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Internal control system definition: 3 začať sa učiť
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Network of systems established in an organisation to provide reasonable assurance | that organisational objectives will be achieved Network of systems | to provide reasonable assurance | organisational objectives.
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Internal management control začať sa učiť
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Procedures and policies in place to ensure that company objectives are achieved.
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Internal control system objectives: 3 začať sa učiť
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Safeguarding assets. | Prevention and detection of fraud and errors. | Accuracy and completeness of accounting records.
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Internal control system benefits: 3 začať sa učiť
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Effectiveness of operations. | Reliability of financial reporting | Compliance with law
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Sound internal control system characteristics: 3 začať sa učiť
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Embedded within operations. | Able to respond to changing risks. | Procedures for reporting control weaknesses.
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Internal control systems by COSO začať sa učiť
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‘Tone at the top’ or the ethics and culture of the organisation. Set by management philosophy and style.
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Risk assessment procedure. 3 | Internal control systems by COSO začať sa učiť
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Set objectives of organisation. | Then for each objective, identify and assess the risk affecting that objective. | Distinguish between controllable and uncontrollable risks.
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Internal control systems by COSO začať sa učiť
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Policies and procedures ensuring instructions of management are carried out.
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Information and communication 2 | Internal control systems by COSO začať sa učiť
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Communicate correct information to correct people. | Need internal and external information systems.
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Monitoring is a ....... Normally doing by ...? 2 | Internal control systems by COSO začať sa učiť
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Control of controls | normally by internal audit function.
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Strategic level management responsibilities for internal control and risk. 3 začať sa učiť
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Monitoring organisation as a whole. | Reviewing IC systems. | Assess the risk outcomes of different decisions.
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Tactical level management responsibilities for internal control and risk 3 začať sa učiť
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Implement strategic decisions. | Inform strategic managers of control weaknesses. | Advise them on risks identified.
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Operational level management responsibilities for internal control and risk. 3 začať sa učiť
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Identify risks at operational level. | Report weaknesses to tactical managers. | Controlling day-to-day operations.
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Information characteristic for STRATEGIC level začať sa učiť
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Information characteristic for STRATEGIC level začať sa učiť
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Information characteristic for STRATEGIC level začať sa učiť
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Information characteristic for STRATEGIC level začať sa učiť
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Information characteristic for STRATEGIC level začať sa učiť
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Information characteristic for STRATEGIC level začať sa učiť
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Information characteristic for STRATEGIC level začať sa učiť
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Information characteristic for STRATEGIC level začať sa učiť
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Information characteristic for STRATEGIC level začať sa učiť
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Information characteristic for Operational level začať sa učiť
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Information characteristic for OPERATIONAL level začať sa učiť
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Information characteristic for OPERATIONAL level začať sa učiť
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Information characteristic for OPERATIONAL level začať sa učiť
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Information characteristic for OPERATIONAL level začať sa učiť
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Information characteristic for OPERATIONAL level začať sa učiť
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Information characteristic for OPERATIONAL level začať sa učiť
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Information characteristic for OPERATIONAL level začať sa učiť
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Information characteristic for OPERATIONAL level začať sa učiť
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Risk management strategy needs to be develop for frauds. This strategy should include three key elements: 3 začať sa učiť
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Fraud prevention | Fraud detection | Fraud response fraud detection - e.g. performing regular checks, stocktaking or cash counts.
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Fraud prevention examples: CAWS začať sa učiť
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An anti-fraud culture | Risk awareness | Whistleblowing | Sound IC systems
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Organisations response to fraud: 3 začať sa učiť
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Internal action, in accordance with personnel policies | Civil litigation for the recovery of loss | Criminal prosecution through the police
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Factors affecting the need for internal audit: 3 začať sa učiť
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Scale and complexity of company activities | Increase in unacceptable events. | Changes in key risks.
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It is now common for companies to use a combination of push and...? začať sa učiť
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Disclosure – general principles 3 začať sa učiť
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AGM is the opportunity to communicate with shareholders. | Annual report only legally-required information to shareholders and other stakeholders. | Mechanism which gives the transparency to the governance. AGM is the most important, perhaps only opportunity for the directors to communicate with shareholders.
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Organisational risks example: začať sa učiť
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the organisation is too moribund and too slow to respond to developments in the market. moribund - chylący się ku upadkowi
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Inadequate system risk example: začať sa učiť
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management information inaccurate and out-of-date.
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theft of cash or inventory.
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an employee acts unethically and the company’s reputation is damaged.
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Reputational risk example: začať sa učiť
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products get a name for being unreliable so the company’s reputation is damaged.
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začať sa učiť
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Mergers and acquisitions.
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Conflict of interest definition: 2 začať sa učiť
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Situation in which an individual has compromised independence because of another countervailing interest which may or may not be declared. compromised independence | countervailing interest (wyrównawczy) Shareholders have the right to expect each NED to act wholly in the shareholder's interest. Any other factors that might challenge this sole fiduciary duty are likely to give rise to a conflict of interest. Risk that NED take own personal benefits first.
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Discuss the ways in which CSR and the ethical stance might differ between non-profit and a commercial business. 3 začať sa učiť
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Strategic purpose. | Measures of success. | Directors and staff attitude to financial benefits.
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Four roles of nomination committee: 4 začať sa učiť
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Policy determination. | Each directors is rewarded for individual contribution. | Annual disclosures to shareholders with remuneration breakdown for each individual with explanation. | Law and voluntary code compliance ensuring.
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Eco-Management and Audit Scheme (EMAS) is a management instrument to? 3 začať sa učiť
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Evaluate, | Report, | and Improve organizations environmental performance.
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What is the main use of EMAS? Eco-Management and Audit Scheme začať sa učiť
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Use the EMAS registration to demonstrate to customer, suppliers and investors your commitment to environmental care and improvement. commitment to environmental care
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ISO for international standards on environmental management: začať sa učiť
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3 začať sa učiť
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Guidance on the development of environmental management systems. | Guidance on environmental auditing. | Coverage of life-cycle issues.
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Triple bottom line accounting elements. 3 začať sa učiť
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3P Profit: nothing new here as this is the traditional reporting of financial performance.
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Triple bottom line accounting (3Ps) začať sa učiť
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It deals with environmental and sustainability issues, sometimes known as the organisation’s environmental footprint.
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2 | Triple bottom line accounting (3Ps) začať sa učiť
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Metrics can include reporting on the ethnic and gender composition. | Comparisons of the wages between different groups. It deals with social issues.
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2 začať sa učiť
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How profits can be increased (in a profit-seeking organisation). | How service levels could be improved in a not-for-profit organisation.
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The business case techniques examples: 3 začať sa učiť
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Cost-benefit analysis. | NPV. | Decision tree.
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The project benefits really begin to be more easily dealt with once they change from...? začať sa učiť
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_from measurable to quantifiable. Because predictions are needed for DCF calculations.
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The objectives and deliverables of the project are never really well defined | or keep changing.
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The project sponsor can be regarded as a person to whom... 2 začať sa učiť
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to whom the project belongs | and very often is a person or department which is providing the funding. The person or department who wants the project to be undertaken.
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The project manager responsibilities? 3 začať sa učiť
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_day-to-day responsibilities | for looking after the progress of the project | and in particular he will be looking after a project team.
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The project manager useful abilities: 3 začať sa učiť
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Technical ability. | Negotiation ability. | Reporting on progress and difficulties.
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Post-implementation review characteristics. začať sa učiť
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This is about what the project achieved. If the project has delivered anything of sufficient value.
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Difference in make-up of AC and RmC against Nomination Committee and Risk Management Committee?. začať sa učiť
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Nomination committee and Remuneration Management Committee should comprise majority of NEDs. In contrast to AC and RmC only Neds.
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Risk Management Committee report to...? začať sa učiť
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RC B
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Risk manager report to...? začať sa učiť
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Risk Management Committee. Chief internal auditor (CIA) report to the Audit committee.
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Operational risks are managed at ...... level. začať sa učiť
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At risk management level (not necessarily board level).
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Improvement sharing clause. začať sa učiť
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In the licensing contract it will ensure that patented technology will be improved and perfected with several manufacturers.
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Voluntary disclosures are the way of... začať sa učiť
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of redressing the information asymmetry that exist between management and investors.
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Voluntary disclosures benefits: 3 začať sa učiť
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Fuller picture of the company. | Annual report more forward looking (predictive). | Enable the company to address specific shareholder concerns as they arise (such as responding to negative publicity).
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Nomination committee report to...? začať sa učiť
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NC B
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