Activity 8.1.pdf - Learning Unit\/Study Unit 8 Corporate responsibility and governance implications for HRM Activity 8.1 Read the case study below and

Activity 8.1.pdf - Learning Unit/Study Unit 8 Corporate...

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Learning Unit/Study Unit 8 Corporate responsibility and governance: implications for HRM Activity 8.1 Read the case study below and then answer the question that follows. Dysfunctional corporate governance Mr Ben Rajaram recently resigned as the CEO of Inqubeko Company. In his letter of resignation, he cited a loss of confi dence in the board of directors as the main reason behind his decision to leave the company. He also stated that he could no longer work for Inqubeko Company, since it would have a negative impact on his career prospects. Inqubeko’s poor corporate governance has been in the spotlight for about seven years. The company has seen several CEOs leaving after nine months. They all cited their diff erences with the board because of poor corporate governance as a reason for resigning. In his letter of resignation, Mr Rajaram advised the board to get a specialist to educate them on corporate governance. He said that all board members, especially the chairperson, had a poor understanding of governance. Mr Rajaram stated that confl icts of interest cloud the judgement of the board members. He
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