DETAILS OF THE ASSESSMENT TASKS AND LEARNING OBJECTIVES
| Description | Marks out of | Wtg (%) | Due Date |
| ASSIGNMENT 1 – PROBLEM-SOLVING | 100 | 40 | 11:59 pm Sunday 6 September, 2020 |
Submission Details:
Ø Electronic submission via link (button) provided on the study deskSubmission Point for Assessment 1.
Ø Up to 5 separate files can be submitted through the electronic submission ‘button’’
Ø To receive marks for this assignmentYOU MUST include your name and student number in your assignment file in the header of each submitted document.
Ø Turnitin will not be used for this assignment because of the level of similarities expected with the submitted files. However, students must not collude with other students or commit plagiarism to complete their assignment calculations or analyses.
Assessment task
Currently, you have been appointed to be the Chair of the board of directors for a private company (JR services Pty Ltd) that has bene operating for several years. The legal process of incorporation of a new company (Financial Services Ltd) is to offer its shares to the public for purchase through the Australian Stock exchange (ASX).
You have been assigned the task of preparing an internal report for non-executive and independent non-executive board of directors. The report must be a maximum word limit of 2,000 words. The report must identify and critically analyse, systematically, the non-compliance of the matters, practices, or activities of HIH Insurance Limited that you will compile collectively under the relevant specific principle or legislative.
The purpose of this internal report is for you to use the HIH experience as a basis for you to provide clear guidelines of appropriate behaviour to ensure an understanding of the appropriate behaviour by board members and company executives.
This identification and critical analysis of the non-compliancesource will require you to demonstrate your knowledge of the eight ASX Corporate Governance Best Practice Principlesand Corporations Law‘s delegation oversight regulatory provisions to AISC and CLERP9 related to AISC’s specific regulatory principles for auditing professional conduct and appointment matters. You then will need to apply this knowledge to the case details and conduct a critical analysis of the non-complianceinformation and sources. Further, your critical analysis should include Kohlberg’s Model of Cognitive Moral Development including the six steps within the three levels of ethical concern model related to the unethical behaviour and characteristics of the personnel committing these breaches of moral reasoning behaviour.
Your writing must be of a professional style with appropriate headings, font, format, title page, table of contents. Also, you must take a professional approach to the appropriate non-technical word choice, your grammar, your spelling, the length of your sentences, and your use of figures/tables/charts. Consistent Harvard referencing style (if needed) should be used throughout the assignment. The reference list should include only references used for articles provided in the StudyDesk as well as any new articles you have used in the assignment. All references list articles should be in the correct formatting style (that is, please do not provide a bibliography).
Requirement 1 to 4 on page 4 of this assignment document should be included into your internal report to achieve the expectations listed on the following page.
Finally, your reflective thinking under requirement 5 on page 4 of this assignment document will be of a personal nature and therefore requirement 5 should be provided as an appendix to your report. However, this reflection should provide you with an insight into your characteristics of Cognitive Moral Development and allow you to identify your moral leadership style. Your moral leadership style therefore should be reflected in your clear guidelines of appropriate behaviour to ensure an understanding of the appropriate behaviour by board members and company executives within your internal report.
Assessment task expectations
The purpose of this assignment item is to test identified aspects of following three learning objectives
1. Testing your knowledge as outlined in objective 1 – todemonstrate mastery of theoretical knowledge of the corporate governance, ethical and moral obligations, and social responsibility issues involved in business decision making
2. Testing your application of this knowledge as outlined in objective 2 – toapply regulatory requirements to develop appropriate board and committee functions and structures to protect the interests of diverse stakeholders in the corporations
3. Testing your analytical and reflective skills and applying your knowledge and skills as outlined in objective 3- toutilise critical ethical and social thinking skills to analyse the existence of corporate governance best practice principles and to recommend how to achieve appropriate business practice
Knowledge demonstration
To identify and collate your identified inappropriate practices and activities into a specific ASX principle (group common practice and activity concerns, with relevant one of the 8 ASX principles listed below), or specific section(s) of the corporations law section or CLERP9
Application of knowledge through critical analysis
This critical analysis must be based on your knowledge of the duties required of the board of director and senior management as set out under the eight ASX Corporate Governance Best Practice Principlesand Corporations Law‘s delegation oversight regulatory provisions to AISC and CLERP9 related to AISC’s specific regulatory principles for auditing professional conduct and appointment matters. Your critical analysis, should explain why you believe each inappropriate practices and activities should conform to the specific ASX principle corporations law section or CLERP9.
Use critical ethical and social thinking skills to analyse the existence (or absence) of corporate governance best practice principles
Provide your opinion (reflection) of Ray Williams, Rodney Adler and Dominic Fodera individual levels of Kohlberg’s Model of Cognitive Moral Development based on your critical analyse of the practices and activities committed by each executive and the non-executive director.
Additionally, reflect, comment, and recommend in the internal report on whether you would, or would not, repeat the actions of either Ray Williams or Rodney Adler or Dominic Fodera and explain why you would take that action. Explain your reasons for taking or not taking the same actions
Self-management thought reflective thinking
To provide your reflective thinking on characteristics of Cognitive Moral Development in your critical analyses ethical behaviour and identify at what level you believe you are positioned and explain why you have formed that opinion. Also, reflect on whether the position you have identified is appropriate for you as the Chair of the board for a publicly listed company and explain why you have this opinion. Please provide this reflective thought as an appendix to your report.
Quality of communication skills to identify, analyse, and recommend inappropriate and appropriate business practice
Employ a professional writing style using appropriate non-technical word choice for all of the following aspects, your grammar, your spelling, the length of your sentences, and your use of figures/tables/charts with appropriate headings, font, format, title page, table of contents. Harvard referencing style should be used throughout the assignment. The reference list should include only references used in the assignment and should be in the correct style (not a bibliography).
Resources provided on ACC8801 StudyDesk for this assignmentACC8801 studydesk week 2:
Reading: HIH Case Study on Conglomerates: HIH/FAI Takeover
Reading: HIH collapse
Reading: Why HIH collapsed
Reading: The demise of HIH: corporate governance lessons
Reading:HIH Insurance Limited – a compiled summary from various sources by Professor John Sands
ACC8801 studydesk week 4:
Summary of CLERP9 by The Australian Institute of Company Directors
CLERP 9- Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004 CLERP9 Overview
Corporations Law outline – you can link to each section of the six section of the Act through built in links
Act Compilation Under this link there are links to the 6 Volumes of the Act
ASX Corporate Governance Principles and Recommendations 4th Edition February 2019https://www.asx.com.au/documents/regulation/cgc-principles-and-recommendations-fourth-edn.pdf
Other sources outside of the ACC8801 StudyDesk you wish to use for the assignment
Other reports or articles/e-releases that you deem are warranted for your assignment answers.
| Requirements | After reading the provided readings as well as any additional readings you believe are relevant, answer the following questions that match the five criteria on the following page.
|
| 1. | Collate in the internal report inappropriate practices and activities you have identified into a specific ASX principle (group common practice and activity concerns, with relevant 8 ASX principles listed below), or specific section(s) of the corporations law section or CLERP9 and
provide as explanation why you have collate the practices and activities under each principle or regulatory section. 20 marks
|
| 2. | Provide in the internal report your critical analysis, based on an application of your knowledge about the duties and responsibilities of the board of director and senior management to explain why you believe each of the inappropriate practices and activities should conform with the specific ASX principle corporations law section or CLERP9 20 marks
|
| 3. | Provide your opinion (reflection) of Ray Williams, Rodney Adler and Dominic Fodera individual level of Kohlberg’s Model of Cognitive Moral Development based on your critical analyse of the practices and activities committed by each of the two HIH executives and the HIH nonexecutive director. Use this opinion to support your recommended guidelines to provide clear
guidelines of appropriate behaviour to ensure an understanding of the appropriate behaviour by board members and company executives. 15 marks
|
| 4. | Reflect, comment, and recommend in the internal report on whether you would, or would not, repeat the actions of either Ray Williams or Rodney Adler or Dominic Fodera and explain why
you would take that action. Explain your reasons for taking or not taking the same actions to support the recommended guidelines in your internal report 20 marks
|
| 5. | Reflect on characteristics of Cognitive Moral Development in your critical analyses on ethical behaviour and identify at what level you believe you are positioned and explain why you have formed that opinion. Also, reflect on whether the position you have identified is appropriate
for you as the Chair of the board for a publicly listed company and explain why for have this opinion. 15 marks
|
| Focus of answers for requirements 1 and 2 on the following principles and specific legislative section(s) | |
| Principle 1: “Lay solid foundations for management and oversight” | |
| Principle 2: “Structure the board and add value” | |
| Principle 3: “Promotion of ethical and responsible decision-making” | |
| Principle 4: “Safeguard integrity in financial reporting” | |
| Principle 5: “Make timely and balanced disclosure” | |
| Principle 6: “Respect the right of shareholders” | |
| Principle 7: “Recognise and manage risk” | |
| Principle 8: “Remunerate fairly and responsibly” | |
| Corporations Law requirements – S180 and S 181 | |
| CLERP 9 audit firm related requirements | |
Assessment Task 1 for ACC8801:A Case Study for the HIH Insurance
| Assessment Criteria | Rubric for assessment criteria | ||||
| Collate inappropriate HIH practices and activities into a specific ASX principle (group common concerns, practices, and activities with one of the 8 ASX principles listed below), or specific section(s) of the corporations law or CLERP9
/Out of 20 |
— HD + HD
17 20 • An very detailed demonstration of an extensive knowledge about 8 ASX practices & regulatory sections • Highly correct extensive collation of inappropriate practices and activities to relevant principle or regulatory section |
— A + A
15 16.8 • A more detailed demonstration of knowledge about most of the 8 ASX practices & regulatory sections • Highly correct collation of most inappropriate practices and activities to relevant principle or regulatory section |
—B + B
13 14.8 • Demonstrated knowledge of equal to or more than half of the 8 ASX practices & regulatory sections • Appropriate correct collation of inappropriate practices and activities with equal to or more than half to relevant principle or regulatory section |
—C +C
10.0 12.8 • Demonstrated knowledge of less than half of the 8 ASX practices & regulatory sections • Limited and inappropriate collation of inappropriate practices and activities to relevant principle or regulatory section |
Unsatisfactory F
0 9.8 • An inadequate demonstration of knowledge about the 8 ASX practices & regulatory sections • Inadequately collation of inappropriate practices and activities to relevant principle or regulatory section |
| Correct application of critical analysisdiscuss and explainHIH inappropriateness actions included within a specific ASX principle corporations law section or CLERP9 based on the duties and responsibilities of the board of director and senior management /Out of 20 | — HD + HD
17 20 • demonstration of an extensive application and explanation of knowledge about the 8 ASX practices & regulatory sections |
— A + A
15 16.8 • a more detailed application and explanation of knowledge about most of the 8 ASX practices & regulatory sections |
—B + B 13 14.8
• a solid application and explanation of knowledge equal to more than half of the 8 ASX practices & regulatory sections |
—C +C
10.0 12.8 • some but limited application and explanation of knowledge to less than half of the 8 ASX practices & regulatory sections |
Unsatisfactory F
0 9.8 • An inadequate application and explanation of knowledge about the 8 ASX practices & regulatory sections |
| Correctly reflect on HIH’s two executives and one non-executive director individual level of Kohlberg’s Model of Cognitive Moral Development based on their ethical characteristics and their inappropriate practices and activities /Out of 15 | — HD + HD
12.75 15 • a correct recognition of three individual’s level of moral development using critical reflection about their related and identified inappropriate practices and activities • Useful inclusion of three levels reflection in the internal report & well linked to report’s clear guideline |
— A + A
11.25 12.6 • a correct recognition of three individual’s level of moral development using critical reflection about their related and identified inappropriate practices and activities • Useful inclusion of three levels reflection in the internal report but not well linked to a clear guideline in the report |
—B + B
9.75 11 • a correct recognition of two individual’s level of moral development using critical reflection about their related and identified inappropriate practices and activities • Useful inclusion of two levels reflection in the internal report |
—C +C
7.5 9.6 • a correct recognition of one individual’s level of moral development using critical reflection about their related and identified inappropriate practices and activities • Useful inclusion of one level reflection in the internal report |
Unsatisfactory F
0 7.35 • An inadequate use of critical reflection about their level of moral development, related to the identified inappropriate practices and activities • No useful inclusion of reflection in the internal report |
| Quality of communication skills for nonaccounting audience (board) about whether to repeat HIH inappropriate practices and activities with explained reasoning /Out of 20 | .— HD + HD
17 20 • an excellent levelof presentation style, word choice, grammar, spelling, length, figures/tables/charts with excellent referencing • All reasons explained why not to repeat |
— A + A
15 16.8 • a very good levelof presentation style, word choice, grammar, spelling, length, figures/tables/charts with good referencing • Most reasons explained why not to repeat |
—B + B 13 14.9
• an acceptable levelof presentation style, word choice, grammar, spelling, length, figures/tables/charts and some referencing style issues • Very limited reasoning explanation why not to repeat |
—C +C
10.0 12.9 • some inappropriate presentation style, word choice, grammar, spelling, length, figures/tables/charts and some inconsistent referencing style) • Almost no explanation of reasoning why not to repeat |
Unsatisfactory F
0 9.8 • An inadequate presentation style with inappropriate word choice, grammar, spelling, length, figures/tables/charts and inconsistent referencing style • No explanation of reasoning why not to repeat |
| Reflect on own level of Cognitive Moral Development’s position and why formed that opinion.
/Out of 15 |
.— HD + HD
12.75 15 • an excellent reflection on the characteristics and inappropriate practices and activities • extensive reference to this reflection to the guidelines in the report |
— A + A
11.25 12.6 • a very good reflection on the characteristics and inappropriate practices and activities • Strong reference to this reflection to the guidelines in the report |
—B + B
9.75 11 • an acceptable reflection on most of the characteristics and inappropriate practices and activities • Some reference to this reflection to the guidelines in the report |
—C +C
7.5 9.6 • some inappropriate reflection any of the characteristics and inappropriate practices and activities • Limited reference to this reflection to the guidelines in the report |
Unsatisfactory F
0 7.35 • An inadequate reflection on any of the characteristics and inappropriate practices and activities • No match of this reflection to the guidelines in the report |
| TOTAL | 100 | / | |||
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