`

MAY 2019 ASSIGNMENT QUESTIONS

ETHICS AND CORPORATE GOVERNANCE

COURSE CODE: RSM 301
INSTRUCTIONS TO CANDIDATE
1. This question paper comprises of 2 printed pages.
2. The assignment contains THREE questions and is marked out of 75 marks.
3. ANSWER ALL QUESTIONS
4. Start each question on a new page.
5 The assignment is due on the exam date.
6. Assignments expire after every examination sitting.
7. This assignment is only for the May 2019 examination.

You are reminded of the need for good English and clear presentation in your answers.
NB: PLAGIARISM AND COPYING IS AN ACADEMIC OFFENSE THAT MAY
RESULT IN DISCIPLINARY ACTION.

Question 1

“Zimbabwe follows a ‘hybrid’ corporate governance system as opposed to a principles-

based and rules-based approaches to corporate governance.”

Discuss the above statement highlighting the advantages and disadvantages of each
corporate governance approach. In your answer you should clearly state which approach
is better in ensuring effective adherence to corporate governance principles.
[25 Marks]

Question 2
You have been appointed by your organization as the Corporate Governance Expert to
present a paper on the Public Entities Corporate Governance Act [Chapter 10:31] which
became law in Zimbabwe on 8th of June 2018.

Required:
Prepare a detailed paper discussing the major highlights of the Public Entities Corporate
Governance Act showing how it will enhance good corporate governance in state-owned
enterprises and parastatals in Zimbabwe.
[25 Marks]
Question 3

Tom is a senior manager with KK (Private) Limited which supplies school uniforms and
corporate wear to various schools and companies. Tom’s wife goes to China every month
to buy fabric, which she secretly sells to KK at high prices. During new school terms KK
is unable to supply all the uniforms required by the various schools. Tom is approached
by a competitor who offers him 20% commission for referring schools to buy uniforms
from the competitor. In December Tom is given a holiday voucher by the competitor to
go to Dubai as a ‘token of appreciation’.

Wiseman, the finance manager of KK, has discovered that Tom is buying fabric from his
wife at exorbitant prices but does not know how to deal with the issue. Wiseman has also
discovered that Tom is diverting customers to a competitor for a commission. Wiseman is
scared of being fired from his job if he reports the matter to the Chief Executive Officer of
the company who is also a close friend of Tom.

Required:

(i) Discuss the ethical issues arising from the above scenario.
(ii) Make appropriate recommendations on how KK (Private) Limited should deal
with the various ethical issues.
[25 Marks]

*** END OF ASSIGNMENT QUESTIONS ***

Page 2 of 2