Английский язык. Практический курс для решения бизнес-задач - Нина Пусенкова

2. indicating trustee or his office; accepted only because the public has faith in its value

3. empowered to appoint or elect a representative; serving to make up a thing; component

4. a particular course or model of action

5. that which comes out of or results from something; the consequence; the conclusion

6. specialized knowledge

7. an agreement between two or more persons to do or refrain from doing some act; an incidental clause in a legal agreement

8. to assign by writing one’s name on the back; to sanction, ratify or approve

9. a standing rule of an organized group, created for the regulation of its internal organization and the governing of its members; a local law or ordinance enacted by a municipality or other community

Exercise 3. You are a corporate governance expert hired by a Russian company to introduce appropriate corporate governance procedures and develop its corporate governance code. You have to explain to the CEO the potential benefits of the good corporate governance track record and create the corporate governance principles for the company.

Exercise 4*. Fill in the blanks using terms given below.

Techniques that Keep Staff Toeing the Line

According to Sir David Tweedie, chairman of the UK International Accounting Standards Board, the……. and negligence that made a mockery of…….. in the US came down to one thing: greed. «The excessive………. was obscene,» he says. «75% of…….. issued by major companies in America went to the top five…… By fiddling the……., you could end up making so much money from stock options that you didn’t have to work thereafter – and neither did your family for several generations.»

Sir David is equally scathing about those involved in corporate governance who……. to prevent problems. In his view, executive…… failed; non-executives were kept in the dark;……. committees failed;……. fell asleep at the wheel;…… agencies did none too well;…… missed it; the…….. failed to regulate; and the…….. and lawyers were part of the problem, helping companies with their questionable……..

«That is why it was such a shock to corporate America,» he explains. «It wasn’t just one little piece gone wrong, but a whole line of…….. that went flat. The whole system was collapsing.»

Since 2001, the debate about corporate governance has spun off in many directions. It has taken in executive remuneration, financial……. standards, the…….. of non-executive directors, auditor……… investor trust, the split between the roles of…….. and chief executive, and wider……… The unifying theme in all such……. is that they primarily concern company boards. The subtext is clear: corporate governance is the preserve of the very…….. business people.

Yet corporate governance has far wider resonance. The Turnbull Report, aimed at spreading……. in UK governance, made clear that while…….. for internal control ultimately rests with a board…….. involves employees too. «All employees have some responsibility for internal control as part of their……… for achieving objectives,» the report states. «The system of internal control should be…….. in the operations of the company and form part of its culture.»

Bill Waite, chief executive of the Risk Advisory Group, says that like so many other things in business, governance involves the…….. and…….. of a workforce. «The biggest risk in any company comes from the…….. Even where the…….. is external, you usually find an employee has been befriended and then exploited.»

On the other hand, staff can also be antennae for…….. When investigating the Tyco International fraud, the Manhattan District Attorney remarked that he found it «extremely troublesome… that no………. had come forward.» The majority of FTSE 500 companies now have these………. in place.

Traditionally, of course…….. practices have been seen as somewhat beneath the interest of boards. Yet if the systems and procedures operating within an organisation to…….. risks are governance issues, theoretically that ought to change. So how far should companies go towards embedding……… behaviour?

Andrew Wilson, director of the Ashridge Centre for Business and Society, says the answer depends on both the…….. culture of individual companies and the…….. business cultures in which those companies………. US companies tend to take a very……….-driven attitude to governance, setting down on paper exactly what is expected of employees. «Gift policies sometimes say a case of wine is inappropriate, while a bottle of wine is fine – it is that detailed», he explains.

Meanwhile, European companies prefer broad principles that allow greater……. for individual……… Ideally, says Mr. Wilson, governance should allow for «disciplined……….».

«A rule-based, bureaucratic……… encourages people to think about what they can get away with, when what you want are sensible judgements in line with business…….. Perhaps, the classic question to ask is „How would I feel if this (action) was reported in the press?“

Although detailed rules make it easier for an auditor to control its clients, they also make it easier for people to work out exactly what to do to get around them. «An investment bank will come up with a……. in three seconds,» he says. «In contrast, a……. will catch all variations.»

According to Brian Gregory from Oracle, corporate governance may serve to break down «the fortress HR formality», as boards take a greater interest in an area normally seen as off-limits. «There has been a huge amount of attention on……., but so much less on the people aspects of risk,» he says.

The renewed…… on corporate governance has given a spur for HR…….. systems to be developed that are able to interact with accountancy and other business systems, he says. Information about the skills, competencies……… aspirations and…… of individual employees is now no more than a few mouse clicks away from…….-conscious board members. Modern HR software enables additional……. on employee risk. «At the end of the day,» concludes Mr. Gregory, «governance is about making sure there are no surprises.»

Source: Financial Times

Terms:

SEC, boards, audit, investment banks, focus, fraud, corporate governance, accounts, failed, auditors, analysts, checks and balances, reporting, procedure, effectiveness, background, independence, operate, competence, chairman, internal, empowerment, malfeasance, principle, accountancy, whistleblowers, conflicts of interest, credit rating, remuneration, controls, issues, executives, senior, stock options, expenses claims, mitigate, best practice, responsibility, deals, managing risks, accountability, discretion, embedded, quality, staff, threat, HR, ethical, domestic, compliance, scope, approach, values, scheme, security, IT

Exercise 5. Translate into English.

Корпоративное управление в ТНК-ВР

Стратегия ТНК-ВР подчеркивает важность прозрачности и хорошего корпоративного управления в построении русской компании мирового класса и достижении уровня, сопоставимого с уровнем наших международных коллег.

ТНК-ВР рассматривает хорошее корпоративное управление как ключевой двигатель создания ценностей. Этика управления и профессионализм – фундамент, на котором строятся эксплуатационные усовершенствования.

В течение следующих пяти лет ТНК-ВР будет внедрять стандарты корпоративного управления, которые помогут достигнуть самого высокого уровня не только на российском рынке, но и с течением времени позволят конкурировать с лидерами международного рынка.

Совместно с высоким качеством человеческого капитала, полученным от трех компаний-предшественниц, высокие стандарты управления обеспечат ТНК-ВР устойчивым фундаментом для дальнейшего роста.

Совет директоров из 10 членов (с одинаковым количеством представителей двух акционеров компании – ВР и AAR) управляет ТНК-ВР. Правление имеет два комитета – Комитет по аудиту и Комитет по компенсациям. Ежедневное управление компанией выполняет команда высшего руководства.

Точная и своевременная информация – основа хорошего корпоративного управления. Прозрачность, обеспеченная своевременным потоком точной информации от производства до управления (и обратно), дает возможность эффективного прогнозирования и планирования, принятия обоснованных решений и логичного распределения ресурсов.

ТНК-ВР находится на стадии реализации нескольких проектов, целью которых является повышение уровня корпоративного управления и увеличение прозрачности. Так, широкомасштабный проект трансформации бухгалтерского учета (ATP) начался в начале 2004-го и был нацелен на модернизацию систем и практики учета. Как первый проект подобного рода в российской нефтяной промышленности, он разрабатывался для того, чтобы компания получала в ускоренном режиме более точную и полную информацию для нужд внешней и внутренней отчетности. В ходе проекта были достигнуты следующие цели:

– время, необходимое для закрытия данных, сократилось до 10 дней;

– был разработан единый план счетов (chart of accounts);

– учет в соответствии со стандартами МСФО (IAS) осуществляется в регионах;

– сохранность и целостность данных обеспечивается внедренными и контролируемыми системами.

В дополнение к этому было начато внедрение проекта по усовершенствованию системы внутреннего контроля и «Кодекса деловой практики и корпоративных стандартов».

Источник: www.tnk-bp.ru

Lesson 16

Corporate Social Responsibility

Read and translate the texts and learn terms from the Essential Vocabulary.

People, Planet and Profit

Corporate social responsibility (CSR) refers to a company’s obligation to be sensitive to the needs of all its stakeholders in its business operations. The principle is closely linked with the imperative of ensuring that these operations are «sustainable». ‘Sustainable development’ was defined by the 1987 Brundtland Commission as development that «meets the needs of the present generation without compromising the ability of the future generation to meet their own needs.» In other words, meeting the goals of sustainable development means searching for development paths that permit decoupling of economic growth from environmental degradation.

Today’s heightened interest in the proper role of businesses in society has been promoted by increased sensitivity to environmental and ethical issues. In some countries government regulation of environmental and social issues has increased, and standards and laws are also often set at a supranational level (e.g. by the European Union).

It is important to distinguish CSR from charitable donations and «good works». Corporations have often spent money on community projects, the endowment of scholarships, and the establishment of foundations. They have also encouraged their employees to take part in community work thus enhancing the reputation of the company and strengthening its brand.

CSR goes beyond charity and requires that a responsible company will take into account the impact on all stakeholders and on the environment when making decisions. This holistic approach to business regards organizations as being full partners in their communities, rather than being primarily in business to make profits and serve the needs of their shareholders.

CSR reporting

The application of Sustainable Development principles through the introduction of a CSR policy is often accompanied by what is called triple bottom line reporting which declares that it is necessary to account for not only financial results, but also for the social and environmental impact of the business, i.e. focus not only on Profit, but on People and Planet aspects as well. Some countries (e.g. France) have made such reporting mandatory. However the measurement of social and environmental performance is difficult and new measurement techniques need to be developed.

Advocacy for triple bottom line reforms is popular in Green Parties and in the United Nations circles.

While many people agree with the importance of social and environmental goals, there are also many who disagree with the ‘Triple Bottom Line’ as the way to achieve these goals. The main arguments against it may be summarized as:

Division of labor, which is characteristic of rich societies and a major contributor to their wealth, ensures that organizations contribute most to the welfare of society when they focus on what they do best. Business’s expertise is in satisfying the needs of society and generating a value-added surplus. Thus the ‘triple bottom line’ is diverting business attention away from its core competency. Just as charitable organizations like the Salvation Army would not be expected to pay a cash dividend, business should not be expected to take on concerns outside its core expertise.