Case Study 1
Read the following article titled "Government names 250 carbon tax-paying firms" and answer the following questions:
A. Which theory of regulation can be used to explain the government's carbon tax policy?
B. Do you think Independent MP Rob Oakeshott has been "captured" by businesses in rejecting a floor price on carbon?
C. Which theory of regulation can be used to explain the actions of Former NSW premier Kristina Keneally to urge Prime Minister Julia Gillard to dump the carbon tax policy?
Case Study 2
Read the article "Sustainability on mining forum agenda" and use both Legitimacy Theory and Stakeholder Theory to explain why the gold mining industry will emphasise the sustainability issue in the forum.
Case Study 3
Read the article ‘Life's sweet: $4m for CSR chief' and answer the following questions:
A. Applying Agent Theory and Positive Accounting Theory, explain how did CSR provide both short-term and long-term incentives to the executives and make sure their interests is aligned with those of shareholders?
B. A large component of Mr Brennan's remuneration package is holding CSR shares. What problems are associated with this reward scheme in Mr Brennan's case?
C. On July 1 2011, a ‘two-strikes' law came into effect. This law is designed to hold directors accountable for executive salaries and bonuses. It means an entire company board can face reelection if shareholders disagree with how much executives are being paid.
CPA Australia made a submission to the Australian government and suggested introducing a ‘two-strikes' test as a replaceable rule to give greater discretion to its application.
Evaluate the role of the new legislation, the Australian government, CPA Australia from a critical perspective.