Political Science

Question one
Failing to share important with the board of directors is very wrong. The main objective of having a board of directors in an organization is that the board helps in managing the business primarily in the best interest of the shareholders. Thus the boards functions are fully entrenched in the law of the organization under the duty of care and skills of the directors. In order to outright exercise its duty of care and skills then the directors must have all the necessary and vital information regarding the organization in order to make sound decisions meant to propel the organization to greater success. Hence, hiding vital information from the board of directors would not only result into breach of the organizations laws but it would also result into breach of their duty of care towards the shareholders because every information issued to the shareholders would not reflect the truth position of the organization.

Question two
The board of directors have the ultimate responsibility for financial disclosure when the chief executive officer and the chief finance officer disagree. In a non-profit organization such as the New Hope Industries, the function of the board of directors involves hiring the CEO and any other director which means that the CEO and the Chief Finance Officer are answerable to the board of directors. Hence, the board of directors has the ultimate responsibility for true disclosure of the financial position of the company.

Question three
As long as the contribution of the employee in the two programs is realized evenly, then it would not be advisable for one grant to pick up 25 and the other 75. Every grant an organization receives is meant to achieve given objectives. In this respect, when a particular grant is used to pay a higher salary for a single employee, then it means that the objectives such a grant is meant to achieve would not be realized within the timeframe given by the funders. On the other hand, an employees salary shared between two grants reduces the costs of employing two employees. Hence, since the main objective of a non-profit making organization is to reduce costs, it would then be advisable to charge the 75 to the other grant.

Question four
No, it is not acceptable. As mentioned in (3) above, every grant is meant to achieve a particular objective. When this is done, a true financial position of the organization is not provided since grant expenditure is not fairly matched with the intended programs. By virtue of the fact that the clients do not receive the intended services, then it amounts to misuse of grant funds to pay an employee who does not work in the program for which a grant was intended.

Question five
Since board members function under the laws set out in the company or organization, they are bound by such laws to offer a true leadership of the organization and they are obligated to offer true information regarding the companys position to the shareholders and the stakeholders. Hence, it is not proper to withhold financial information even if the board will needlessly panic because the board is obligated to give a true position of the company whether good or bad.

Question six
There are finance bodies which are endowed with the responsibilities of ensuring that proper ethics are adhered to in financial reports. Many organizations are bound by the rules and regulations that guide professional ethics of finance and accounting officers in the organization. Hence, if the CEOs decision violates the professional ethics of the CFO, then the CFO can seek to be protected by the legal finance body.