Tag (SQ): Multiple Stakeholder Obligations

(a) Different organizations take different stance on corporate social responsibility (CSR), which will be reflected in how they manage such responsibilities. The stance taken normally reflects the extent of inclusion of stakeholders’ interests.

Required:

Explain each of the following CSR stance:

(i) Enlightened self-interest.

(ii) Multiple stakeholder obligation.

(b) Zamtel Communications Ltd is a recently listed local company that is in the process of reorganizing its corporate governance structure to reflect its status as a public company. At the first board meeting after the listing, the board chairman raised the issue of setting up of sub-committees of the Board. The Board agreed to start with two sub committees which are Remuneration Committee and Audit Committee. The board chairman is unsure how the remuneration committee of the board should be composed, its functions and other related matters. As a corporate governance consultant, the board chairman has written to you for advice on various issues regarding the remuneration committee.

Required:

Write a report to the board chairman advising him of the following:

(i) The composition of the Remuneration Committee.

(ii) THREE functions of Remuneration Committee.

(iii) THREE factors to be considered in the remuneration of executive and non-executive directors.