In CyberTech Solutions $($CTS$),$ a leading tech startup, the board consists of seven nonexecutive board members, all of whom are qualified as Cybersecurity Specialists $($CS$).$ The

expertise of Cybersecurity Specialists is particularly relevant for this role due to their

proficiency in data protection, cybersecurity protocols, and risk management, which are crucial

aspects of overseeing the security and governance of a company, especially in the technology

sector. Additionally, all seven directors, in their early $30$s$,$ have completed training in the

company's Cybersecurity Leadership Program during their induction, indicating a commitment

to professional development and effective governance practices.

Mr$.$ Thabo Mkhize, the CEO of CTS$,$ launched a challenge aimed at encouraging employees

to propose innovative cybersecurity solutions. Among the participants, two employees, Lungile

Ndlovu and Khanya Vilakazi, emerged as winners:

Khanya clinched the second prize of R$15,000$ for her innovative encryption algorithm, an idea

she derived independently. On the other hand, Lungile, a cybersecurity analyst, devised a

groundbreaking firewall system with highly effective threat detection capabilities, earning him

the first prize of R$50,000.$ Sipho, Lungile's colleague, assisted in the development process, but

Lungile believed it was a friendly gesture and did not credit him.

However, it's later discovered that Khanya's algorithm exhibits significant bias in criminal

profiling. Despite its advanced encryption capabilities, the algorithm consistently produces

skewed results when applied to data related to criminal activity, disproportionately targeting

individuals of African origin. This raises serious concerns about fairness and potential legal

ramifications for CTS$\text{'}$s technological solutions.

Required:

$3\mathrm{.}1$ Discuss the central corporate governance issue in the scenario. How does this issue impact

the company's governance, and what potential challenges does it pose for the board's decision$-$making processes? $(10)$

$3\mathrm{.}2$ Analyse the potential challenges related to Sipho's involvement in the winning idea without

credit from Lungile. How can the company's implementation of their idea lead to a potential

legal dispute? $(15)$

$3\mathrm{.}3$ Examine the ethical considerations arising from Khanya's biased algorithm in criminal

profiling, offering your opinion in your analysis $(10)$