Question 4 (Corporate Governance) (30 marks) As a part of stakeholder relationship management (Principle 16), King IV recommends that formal dispute resolution mechanisms be adopted by the company to resolve disputes. KayDarren Ltd is a listed industrial company with interests in mining, engineering and manufacturing. The company has a large workforce, is involved in import and export and has a significant customer and supplier base. Some of the company's operations e.g. mining, are in remote areas of the country. Question 5 (Ethics) (8 marks) Many philosophers have written different theories of Moral Virtue. The Virtue Theory claims that we should exercise, exhibit and develop virtues. We should avoid exercising, exhibiting and developing vices. As well as that institutions should instil virtues not vices. There has been challenges against the Virtue Theory as well by some philosophers. (a) Explain the theories of Moral Virtue by the following philosophers: i. Aristotle ii. Aquinas iii. Macintrye iv. Pincoffs (b) Discuss objections made by Milgram \& Princeton against the Virtue Theory. As with any company of this size, a wide range of disputes can arise with both internal and external parties, e.g. labour disputes, disputes with suppliers, land owners, etc. The company has a well staffed legal department and retains the law firm of Redfern and Findlay as its professional legal advisers. Both the head of the intemal legal department and Redfern and Findlay believe that where possible disputes should be settled by alternative dispute resolution and this philosophy has been endorsed by the board of KayDarren Ltd. The following matters, inter alia, have arisen during the year at Kay Darren Ltd: A senior member of management in one of the company's divisions defrauded the company of approx R1m. The board wishes to recover this money and send a clear message to all employees that this type of action will not be tolerated by KayDarren Ltd under any circumstances. The company and one of its major customers in France are in dispute about the amount owed to KayDarren Ltd in respect of a transaction between the two parties. Redfern and Findlay have advised that the problem appears to have arisen because of a difference in an important clause in the contract relating to the transaction. The way the French contract is worded, is different to how the same clause is worded in the English contract. This contract does not contain a dispute resolution clause. The employees on a remote, recently opened mine belonging to the company have threatened to strike if KayDarren Ltd does not improve the living conditions of employees which they allege were promised when the mine opened. The mine employs most of the small local community, and the company is of the opinion that it has more than filled its promises. The employees do not belong to a union. YOU ARE REQUIRED TO: a) briefly explain the term alternative dispute resolution. (1) b) explain with reference to the King IV Code why dispute resolution is considered to be part of sound corporate governance. c) explain the terms mediation, conciliation and arbitration. d) describe, with a brief explanation, the factors which should be considered by KayDarren Ltd in deciding in general, which dispute resolution method to follow. (10) e) discuss which method of dispute resolution should be adopted in each of the matters listed above (13). Your discussion must include a justification of your choice