Name: Mahusay, Jeth A.

Date: November, 2020

Year: BSA-3 Instructor:Ms. Anna Mae Magbanua, CPA
Subject: Corporate Governance and Business Ethics

Module 4

1. To what extent should the Board of Directors be responsible for the

corporate culture of a company?

Although it is a joint duty between the C- Suite Executive Team and

the Board of Directors to develop, sustain and "enforce" the culture of
an organization, boards should play an especially active role in this
process. This Board, by default, with its associated emergencies and
conditions for urgent decisions, is excluded from everyday operations.
It would not be shocking to learn that senior management does not
spend much time pondering the culture of the business. The Board
should and can, on the other hand, take advantage of its longer-term
outlook to detach them from day-to-day activities, which frequently do
not give management time to reflect on cultural growth. In shaping
the community, committees, "above the fray," must play an active
part. The Board also has an excellent chance to lead by living up to the
cultural values that the organization has developed and seeks to
incorporate into its working world by example.

2. What do you think is the “tone at the top” for JP Morgan? How did this
affect the decision to hire princelings?

In order to win business in the Asia-Pacific zone, JP Morgan Chase's

stock price was lowered and legal costs were charged. After a three-
year investigation into a massive international bribery system that
breached the Foreign Corrupt Practices Act, the deal with US
regulators comes after a three-year investigation (FCPA). It may be
the first of a series of similar transactions with banks on Wall Street.

3. What do you think JP Morgan (New York headquarters) could have

done to prevent the abuse of the “Sons and Daughters” programme?
 JP Morgan must coordinate with FCPA with proper compliance needed
to avoid unethical/wrongdoings. By this, they can easily continue the
business.

4. JP Morgan’s main defense is that ‘every other bank is doing it’ and that
the princelings are well qualified as well. Do you think this justifies the
hiring practices adopted? Explain this using both a legal and ethical
perspective.

No because JP Morgan hiring practices is unethical and not legal in

which it has violations. Although even if the FCPA didn’t find complete
evidences, they knew about their wrongdoings.

5. Some economists are of the view that the Wall Street banks are
getting “too big to regulate”. Discuss whether or not you support this
view, taking into account the role and powers of the SEC and other
regulators.

Changes to GM’s internal process of handling safety issues are

vital in preventing another future business failure. “Speak up for
Safety” is a good program in order to hear the clear message that they
must react immediately to potential safety defects. Improved
information-sharing across GM’s different units could help identify or
solve problems more efficiently and more effectively without worsening
the scenario.

6. JP Morgan’s Code of Conduct specifically prohibits bribery and

corruption. How effective is it in preventing such acts? Whistleblowing
arrangements are increasingly seen to be an important component of
the corporate governance framework of an organization. To what
extent does having a whistleblowing policy help to mitigate such acts?

In resolving the case, Marry Barra took proactive action. I want

to have sufficient control of its procurement and production and
incorporate a framework of quality inspection. A variety of important
quality practices that could be sacrificed in cost-cutting operations are
worth mentioning. Saving costs when risking efficiency will result in
more money being invested and lead to class action litigation against
General Motors. In order to be completely informed of company
functions, timely investigation of deviations and grievances is a clear
sign. Learning from these lessons may contribute to the integrity of
quality outputs being maintained.
 With the job success of the head of vehicle safety, there will be
lapses, it is reasonable to name a new global head of vehicle security.
A product squad, inspectors to investigate customer reports and
warranty claims regarding possible automotive product protection
concerns are also included. This is also a smart step to attract
consumers' interest again in order to continue purchasing their cars
despite the past issues.