3. Preface
• Started in the past decades
• due to Financial Crisis and Scandals
• all over the World starting Asia crisis
1997
• and lately 2008 financial crisis;
• many and huge firms collapsed or went
bankruptcy
3
18. The 5 Rights
Info System
PeopleTime
Decision
18
CG is a
decision
making
Mechanism!
19. Concerned
with
• The flows of the information
• Protecting shareholders’ wealth
• Achieving the goals
• Maintaining the reputation, brand, and
value of the business
plus,
• It determines the company’s culture
19
25. History
Enron
Founded in 1985
Energy, electricity and natural gas,
commodities and services
In 2000, claimed revenue of $101
billion
Fortune Magazine; “America’s most
innovative company”. For six years
in a row
25
27. History & Scandal
Parmalat
Italian diary and food corporation
1997 began to enter world financial
markets (to finance international
acquisitions)
2001 moved to derivatives
2003 went bankruptcy ($14 billion debt)
Identified by Bank of America
27
29. History & Scandal
Ranbaxy
India based pharmaceutical company
Manufactures generic drugs for European
and US markets
2005, by a whistleblower; a new product
with suspect or unreliable clinical data
Inaccurate key information about the
product
29
31. History & Scandal
British Petroleum
Oil & Gas
Explosion and fire sank the drilling rig
Deepwater Horizon
In the Gulf of Mexico, April 2010
Million gallons of oil spill for 86 days
31
33. History & Scandal
Royal Bank of Scotland
One of the three banks have been found
involved in manipulation of LIBOR rate to
maximize profits, in 2012 (LIBOR Scandal)
Manipulated to benefit their derivatives
trading books
Caught by the traders
33
35. History
Founded in 2004
Second Largest mobile operator KSA
Etisalat UAE owns 27.46%
In 2013 reported net profit of SAR 6.68 b
In June (2Q) 2014 reported SAR 1.312 b
Many investors bought the share
Share price reach over SAR 93 in 30Sep14
35