Define the following terms:

1. Corporate governance
2. Insider trading
3. Bribery
4. Corruption
5. Discrimination
Total 25 marks

Corporate governance

Corporate governance is the collection of mechanisms, processes and relations used by

various parties to control and to operate a corporation. Shailer, G (2004). Governance
structures and principles identify the distribution of rights and responsibilities among
different participants in the corporation (such as the board of directors, managers,
shareholders, creditors, auditors, regulators, and other stakeholders) and include the rules and
procedures for making decisions in corporate affairs Compare: Mallin, Christine A. (2006).
Lin, Tom C. W. (2011) states that corporate governance is necessary because of the
possibility of conflicts of interests between stakeholders, primarily between shareholders and
upper management or among shareholders. Goergen, Marc, (2012).

Corporate governance includes the processes through which corporations' objectives are set
and pursued in the context of the social, regulatory and market environment. These include
monitoring the actions, policies, practices, and decisions of corporations, their agents, and
affected stakeholders. Corporate governance practices can be seen by the researchers as
attempts to align the interests of stakeholders. Tricker, A (2009).

Interest in the corporate governance practices of modern corporations, particularly in relation

to accountability, increased following the high-profile collapses of a number of large
corporations in 2001–2002, many of which involved accounting fraud; and then again after
the financial crisis in 2008.

Governing agents do not have personal control over, and are not part of the object that they
govern. For example, it is not possible for a CIO to govern the IT function. They are
personally accountable for the strategy and management of the function. As such, they
"manage" the IT function; they do not "govern" it. At the same time, there may be a number
of policies, authorized by the board that the CIO follows. When the CIO is following these
policies, they are performing "governance" activities because the primary intention of the
policy is to serve a governance purpose. The board is ultimately "governing" the IT function
because they stand outside of the function and are only able to externally direct, control and
evaluate the IT function by virtue of established policies, procedures and indicators. Without
these policies, procedures and indicators, the board has no way of governing, let alone
affecting the IT function in any way.

Insider trading

Insider trading is the trading of a public company's stock or other securities (such as bonds or
stock options) based on material, non-public information about the company. In various
countries, some kinds of trading based on insider information is illegal. This is because it is
seen as unfair to other investors who do not have access to the information, as the investor
with insider information could potentially make larger profits than a typical investor could
make. The rules governing insider trading are complex and vary significantly from country to
country. The extent of enforcement also varies from one country to another. The definition of
insider in one jurisdiction can be broad, and may cover not only insiders themselves but also
any persons related to them, such as brokers, associates, and even family members. A person
who becomes aware of non-public information and trades on that basis may be guilty of a
crime.

Trading by specific insiders, such as employees, is commonly permitted as long as it does not
rely on material information not in the public domain. Many jurisdictions require that such
trading be reported so that the transactions can be monitored. In the United States and several
other jurisdictions, trading conducted by corporate officers, key employees, directors, or
significant shareholders must be reported to the regulator or publicly disclosed, usually
within a few business days of the trade. In these cases, insiders in the United States are
required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when
buying or selling shares of their own companies. The authors of one study claim that illegal
insider trading raises the cost of capital for securities issuers, thus decreasing overall
economic growth as stated by The World Price of Insider Trading, (2018). However, some
economists, such as Henry Manne, have argued that insider trading should be allowed and
could, in fact, benefit markets.

One commentator has argued that if Company A's CEO did not trade on undisclosed takeover
news, but instead passed the information on to his brother-in-law who traded on it, illegal
insider trading would still have occurred (albeit by proxy, by passing it on to a "non-insider"
so Company A's CEO would not get his hands dirty). Larry H, (2003).

The Securities and Exchange Commission explains that while most people hear the words
"insider trading" and think of the illegal act, "insider trading" can also be legal under some
circumstances. Examples of insider trading that are legal include: A CEO of a corporation
buys 1,000 shares of stock in the corporation. The trade is reported to the Securities and
Exchange Commission. An employee of a corporation exercises his stock options and buys
500 shares of stock in the company that he works for. A board member of a corporation buys
5,000 shares of stock in the corporation. The trade is reported to the Securities and Exchange
Commission.

Bribery

Bribery is defined by Black's Law Dictionary as the offering, giving, receiving, or soliciting
of any item of value to influence the actions of an official, or other person, in charge of a
public or legal duty. Hamilton, A, H, J. (2014) With regard to governmental operations,
essentially, bribery is "Corrupt solicitation, acceptance, or transfer of value in exchange for
official action." Gifts of money or other items of value which are otherwise available to
everyone on an equivalent basis, and not for dishonest purposes, is not bribery. Offering a
discount or a refund to all purchasers is a legal rebate and is not bribery. For example, it is
legal for an employee of a Public Utilities Commission involved in electric rate regulation to
accept a rebate on electric service that reduces their cost for electricity, when the rebate is
available to other residential electric customers. However, giving a discount specifically to
that employee to influence them to look favourably on the electric utility's rate increase
applications would be considered bribery.

A bribe is an illegal or unethical gift or lobbying effort bestowed to influence the recipient's
conduct. It may be money, goods, rights in action, property, preferment, privilege,
emolument, objects of value, advantage, or merely a promise to induce or influence the
action, vote, or influence of a person in an official or public capacity. Lewis, Mauree. (2000).

The United Nations Sustainable Development Goal 16 has a target to substantially reduce
corruption and bribery of all forms as part of international effort aimed at ensuring peace,
justice and strong institutions.
Many types of payments or favours may be fairly or unfairly labelled as bribes: tip, gift, sop,
perk, skim, favour, discount, waived fee/ticket, free food, free ad, free trip, free tickets,
sweetheart deal, kickback/payback, funding, inflated sale of an object or property, lucrative
contract, donation, campaign contribution, fundraiser, sponsorship/backing, higher paying
job, stock options, secret commission, or promotion. Types of bribery are Bribery,
Embezzlement, theft and fraud, Graft, Extortion and blackmail, Influence peddling,
Networking, Abuse of discretion, Favouritism, nepotism and clientelism. Lewis, Mauree.
(2000).

Corruption

Corruption, as it is defined by way of the World Bank, is a shape of dishonesty or against the
law that's undertaken with the aid of a person or an enterprise that's entrusted with a function
of authority, so one can collect illicit advantages or abuse electricity for one's personal gain.
Corruption can also involve many sports which include bribery and embezzlement, and it is
able to also involve practices which are criminal in many countries. According to the World
Bank, (2012), Political corruption occurs while an workplace-holder or other governmental
employee acts in an professional ability for non-public benefit. Corruption is maximum
commonplace in kleptocracies, oligarchies, narco-states, and mafia states.

Corruption and crime are endemic sociological occurrences which appear with ordinary
frequency in virtually all nations on a worldwide scale in various degrees and proportions.
Each individual country allocates home resources for the manipulate and regulation of
corruption and the deterrence of crime. Strategies that are undertaken a good way to counter
corruption are regularly summarized below the umbrella term anti-corruption. Additionally,
worldwide projects like the United Nations Sustainable Development Goal 16 even have a
centered purpose which is supposed to significantly reduce corruption in all of its
bureaucracy, Doss, (2020).

Delays in infrastructure improvement, terrible constructing first-class and layers of extra

charges are all effects of corruption. Many acts of corruption deprive our citizens in their
constitutional and their human rights. García, P, J. (2019). Forms of corruption range, but can
encompass bribery, lobbying, extortion, cronyism, nepotism, parochialism, patronage,
influence peddling, graft, and embezzlement.

Discrimination
Discrimination is the act of making unjustified differences among human beings primarily
based at the agencies, training, or different categories to which they're looked as if it would
belong. Amnesty International, (2020). People can be discriminated on the premise of race,
gender, age, religion, or sexual orientation, as well as other classes. American Psychological
Association, (2019). Discrimination in particular happens whilst individuals or organizations
are unfairly treated in a manner that is worse than other humans are treated, on the premise in
their actual or perceived membership in sure groups or social classes. American
Psychological Association, (2019) Cambridge Dictionaries Online, (2013). It involves
restricting individuals of one group from possibilities or privileges which are available to
contributors of every other organization.

Discriminatory traditions, guidelines, ideas, practices and laws exist in many countries and
institutions in all elements of the arena, such as territories in which discrimination is
generally looked down upon. In some places, tries together with quotas had been used to
advantage those who are believed to be contemporary or beyond victims of discrimination.
These attempts have frequently been met with controversy, and feature now and again been
known as reverse discrimination. Altman, Andrew (2020).

There are many types of discrimination, besides the more familiar forms like race and gender,
based totally on ethnicity, religion, sexual orientation, age, incapacity or handicap, and sexual
harassment. The noted characterization refers to a situation of the direct discrimination,
wherein someone is treated adversely immediately on the idea of a prohibited floor. Indirect
discrimination, refers to a situation wherein an apparently neutral provision or practice is
discriminatory in its effects. Besides direct and oblique discrimination, we might also use the
time period institutional discrimination. Institutional discrimination refers to the practices or
approaches in a business enterprise or an organization, or even the society as an entire, which
can be established in a manner that tends to produce discriminatory outcomes, for example in
the Apartheid regime in South Africa. Altman, Andrew (2020).

As to the foundation cause, discrimination appears to be no clean reputation of any theory of

causation however that discrimination regularly causes a chain reaction of disadvantages. For
instance, it need to be cited that there is a connection also between discrimination and social
distance, given that it's also psychologically simpler to discriminate in opposition to people
that one isn't familiar with.
In conclusion, Mr. C, a piece permit holder, is working at a sushi restaurant. Other Asian and
non-Asian people within the restaurant tease him about being Japanese, and make jokes about
Asians, different ethnic agencies and gays and lesbians. They submit cartoons on the team of
workers bulletin board and make jokes approximately each other’s racial and cultural
background. Mr. C. May be very uncomfortable and tries to ignore it, however no person
else appears to mind and his boss doesn’t do anything about it.

REFERENCES

Amnesty International. Retrieved October 13, 2020. Discrimination occurs when a person is
unable to enjoy his or her human rights or other legal rights on an equal basis with
others because of an unjustified distinction made in policy, law or treatment.

Altman, Andrew (2020), "Discrimination", in Zalta, Edward N. (ed.), Stanford Encyclopedia

of Philosophy (summer 2020 ed.), Metaphysics Research Lab, Stanford University,
retrieved October 13, 2020.

"Discrimination, definition". Cambridge Dictionaries Online. Cambridge University.

Retrieved March 29, 2013.

Doss, Eric. "Sustainable Development Goal 16". United Nations and the Rule of Law.
Retrieved 25 September 2020.

García, Patricia J. (7 December 2019). "Corruption in global health: the open secret". The
Lancet. 394 (10214): 2119–2124. doi:10.1016/S0140-6736(19)32527-9. ISSN 0140-
6736. PMID 31785827.

Goergen, Marc, International Corporate Governance, (Prentice Hall 2012) ISBN 978-0-273-
75125-0

Introduction to sociology. 7th Ed. New York: W. W. Norton & Company Inc., 2009. p. 334.

Larry Harris, Trading & Exchanges, Oxford Press, Oxford, 2003. Chapter 29 "Insider
Trading"

"Report" (PDF). Siteresources.worldbank.org. Archived from the original (PDF) on 5 May

2015. Retrieved 25 September 2012.
Shailer, Greg. An Introduction to Corporate Governance in Australia, Pearson Education
Australia, Sydney, 2004.

Toronto lawyer jailed 39 months for insider trading | CBC News". Archived from the original
on 2020-09-02. Retrieved 2019-08-18.

Uchill, Joe (1 February 2017). "Report: Leakers sell inside trading tips on dark web". The
Hill. Archived from the original on 14 February 2017.