Corporate Governance Sample Exam Answered 

Section A. (20 marks in total)
Answer question 1 (10 marks) AND question 2 (10 marks).1. Chart the governance and management structure of a corporate entity with which you are familiar using the circle and triangle schematic. Academic, sporting, or professional bodies could be covered as well as public or private companies. Does the diagram help to depict the potential to exercise power in that organization? (10 marks).

2. Develop a CSR policy statement for any organization with which you are familiar. It could be, for example, for a profit-orientated company, an academic institution, or some other ‘not-for-profit’ enterprise. Develop a set of performance indicators to monitor and measure the organization’s achievements. (10 marks).

Section B. (20 marks in total)
Answer all two questions of the case study (10 marks each).

The Epsilon case Epsilon, a US marketing services company, provided email marketing capabilities to client companies. The Epsilon web site claimed that “we give clients the ability to send more than 15 million dynamic messages in one hour, or more than 40 billion emails a year.” The around 2,500 client companies included JP Morgan Chase bank, Citigroup, Barclaycard USA, McKinsey Quarterly a management journal, Marks and Spencer a retailer, and Marriott International Hotels.

In April 2011, Epsilon’s files were illegally accessed and millions of records potentially stolen. The company claimed that only small proportion of their clients were affected. Moreover, the files were just lists of names and email addresses, and held no personal or financial information. Some commentators suggested that the theft of these lists was hardly catastrophic, since they contained no more information than a telephone book.Some of the client companies, whose lists had been compromised, were not so sure. The files contained their customer data bases. In the hands of fraudsters, fake emails could seek personal information, initiate various scams, and send spam messages that damaged the firm’s reputation. Some companies sent emails warning their customers that their email addresses may have been stolen.

Questions
1. Who was at fault here? (10 marks)

2. What might have been done to prevent the potential loss to Epsilon and its clients? (10 marks)