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Read the extract below and answer questions that follow Perhaps no company in the world has the perception of its brand being tied to one
Read the extract below and answer questions that follow Perhaps no company in the world has the perception of its brand being tied to one person more than Tesla Inc. (Tesla) and its CEO and now former Chairman of the board, Elon Musk. As at least one journalist phrased it, "Elon Musk is Tesla. Tesla is Elon Musk." And Musk is not just the face of Tesla, but a co-founder of PayPal and Solar City, the founder and current CEO of Space X and founder of its subsidiary, The Boring Company. He has crafted a "real- life Iron Man" persona, including all the eccentricity, and is undoubtedly one of the most recognizable and polarizing CEOs in the world. But 2018 has not been the best year for Elon Musk. In what Musk would call negative propaganda pushed by short sellers, Tesla has faced heightened scrutiny and increasingly negative media attention related to a litany of issues, including cash burn, vehicle safety, production capabilities, and a string of employment-related lawsuits and executive exits (only made worse recently). Analysts and investors began to publicly cool on Tesla and question its long-term value, which Musk also attributed to short sellers. 4.1 Corporate Governance is about responsibility, accountability, fairness, and transparency. In your view, is Tesla observing corporate governance requirements considering the role of the CEO in the extract? (10) 4.2 How will a diversified board of directors help to create an ethical corporate governance system at Tesla? (10) 4.3 Discuss in detail the need to separate the roles of Chairman and Managing Director. (10 marks
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