Organisational Governance and Performance Management

1.Consider the corporate governance failure of parmalat described by Solomon (pp. 38-40) and list the 3 major corporate governance failings identified.

2.What mechanisms, if in place that at that time, may have assisted in avoiding the parmalat failure?

3.Do you think that the roles of non-executive directors, auditors, the internal audit committee and the board of directors are all equally important as mechanisms of ‘Good’ corporate governance? If not, which mechanism do you consider the most important? Discuss your answers.