UMAYAM, William Vincent L.

GOOD GOVERNANCE AND CORPORATE SOCIAL RESPONSIBILITY

MIDTERM EXAMINATION

First Semester, SY 2020-2021

BSBA Operations Management III

1. Discuss thoroughly the concept and practices of Good Governance of a particular company/agency
whether it is private or public in nature. (20 points)

• Nestle is one of the leading and growing business in the country. They offer different lines of products
to its customers. Some of their products are encompasses different lines like baby foods, beverages,
cereals, frozen foods and health nutritions products which are now part of our daily lives. This success
that they have right now is the result of good management and governance within the organization.
Through the years, nestle has adapted to the change in the market and together with this chamge is also
the change to their governance. The Board of Directors enhance their management to continue their
goal of having long term success by creating value for the customers. The Board of Directors changes
their business models and consider the interest of the stakeholders and shareholders of the
organization. Their board of directors had been strengthen by having new independent directors with
relevant knowledge and expertise relevant ot their business ensuring that they understand the
trajectory of the business. The business also decided to sharpen their focus on their core pririoties,
vision and governance by engagement of shareholders, investor's meeting and analyst calls. They have
different committees that are assigned to different task essential to the organization. Their Chairman
and Corporate Governance Committee regularly review their aspect of governance together with asset
and liability management. The Nomination and Sustainability Committee assess the candidate for the
board and review aspects of environmental and social sustainability. The Compensation Committee sets
remuneration principles and submit proposal of remuneration of the board and executibe board to the
board. It ensures the alignment of their values, strategies and performance. The Audit Committee
oversees the internal and external audit, financial reports also the compliance and risk management.
Each of the committees have different functions and they are organized which means that the governing
body within the company is doing a good job taking care of the organization. By this result and
conditions, we can see that the organization have a good governance inside.

2. Explain why did you chose the company/agency. (10 points)

• I choose Nestle as a basis for their concepts and practices of Good Governance because first, it was
suggested by one of my classmates when we are talking about what company should we use as a basis
for discussion of concepts and practice of good governance. He suggested a lot of companies but i just
choose one which is Nestle. He said that it was a good company since its practices and concepts can be
found online. Then, after i searched online about their practices and read, i was further convince to use
it as a reference for this exam. Its governance is good and the explanations are detailed and written in
an easily to understand form. I learned a lot of ideas about their business and how they manage to
grow. The key to their growth is the effective decision makings of the board and the new directors which
have expertise and experience suited for the company.

3. In what manner good governance affects you as a student? (10 points)

• Good governance had help me to understand somethings that i dont know about. I onve thought that
governance is such like simply governing the people. But it is just simply looking at the surface,
goernance is not just simply governing people. There are a lot of things to consider when governing
people and how to govern them properly to produce the desired ourcome. Not all that they think they
can govern people because they have this and that skills or talent, can just govern them. There are
factors to consider and things to look for when someone wanted to govern the people. In the business
world, leaders can just govern or lead people because they thought they can. There are leaders who can
and cannot govern the business so others are tasked to do the work for them. Good governance help
me learned things that is helpful for me in the future. Learning the concept of governance is interesting
since it is related to politics and there are theories that is interesting too. Understanding myself through
the theories in ethics brought me into deep thinking and analyzing of things. Putting myself in the future
with my current ethical principles help me realize that i am still not ready to enter into my dream field of
expertise. Time is ticking and here i am, moving slowly with little progress since i started my college life.
The things i am lacking brought forth because of the lessons, thinking of leading people, managing them
and having a great contribution to the company but i lack interpersonal skills, i dont have enough
confidence to socialize and i am afraid of going outside my comfort zone. This made me realize this
things that i lack the most at this time. I think that as we go along with the lesson, i can find out some
things that i need to improve and develop if i want to achieve that dream of mine.