Read the case study below and answer the questions that follow.

Glencore caught up in corruption scandal!

Corporate South Africa is once again bearing witness to a massive scandal of

another JSE$-$listed giant; this time: commodity behemoth Glencore.

Glencore, which is listed on the JSE and London Stock Exchange, said on Tuesday

that it anticipated paying up to $$1\mathrm{.}5$ billion $($R$23\mathrm{.}6$ billion$)$ to settle accusations

of bribery and market manipulation, as authorities in the US$,$ Britain and Brazil

announced that three of the company$$s subsidiaries were pleading guilty to

crimes.

As Glencore$$s current management team is striving to bolster its tattered

reputation, it faces the music of a bribery and market manipulation scandal, with

its chairperson, Kalidas Madhavpeddi, saying, $$Glencore today is not the

company it was when the unacceptable practices behind this misconduct

occurred.$$

South African$-$born Ivan Glasenberg was replaced as chief executive at Glencore

last year by another South African, Gary Nagle.

By $13$:$41$ on $25$ May $2022,$ Glencore$$s shares were $1\mathrm{.}88$ percent lower at

R$102\mathrm{.}10.$ The shares had risen $117\mathrm{.}35$ percent in the past three years. Glencore$$s

market cap is worth R$1\mathrm{.}5$ trillion.

The findings come as Glencore is benefiting from soaring commodity prices.

As Glencore navigates tricky litigation waters, it has sought to reassure the

market that it now has its ethics well in$-$hand.

The mining firm said significant steps had been taken to enhance its ethics and

Compliance Programme.

Madhavpeddi said, $$The Board and the management team are committed to

operating a company that creates value for all stakeholders by operating

transparently under a well$-$defined set of values, with openness and integrity at

the forefront. We want the Glencore of today to be an employer of choice,attracting and retaining the best talent and competing across its sectors$,$ not only

in terms of the unique value proposition that Glencore has to offer, but also in

its commitment to act ethically and responsibly across all aspects of its business.$$

Starting before the company knew of the Department of Justice$$s $($DoJ$)$

investigations, Glencore had invested substantial resources towards developing

a best$-$in$-$class Ethics and Compliance programme.

$$Glencore has also taken extensive remediation actions, including through the

separation or discipline of employees involved in wrongdoing. The company has

a refreshed board and management team who are dedicated to fostering a

culture of integrity, responsibility and transparency. The DoJ noted certain

enhancements to Glencore$$s compliance programme and internal controls in the

resolutions,$$ it said.

The group said it had bolstered its compliance structures and controls through a

comprehensive programme built around risk assessment, policies, procedures,

standards and guidelines, based on international best practices associated

training and awareness initiatives, as well as monitoring systems.

This included strengthening the group$$s Code of Conduct and launching a

comprehensive global awareness and training campaign designed to embed

Glencore$$s values throughout its business, set expectations and ensure

accountability, for all employees. It also established a centralised, independent

and empowered compliance function and, in $2020,$ appointed a new dedicated

head of compliance, as well as making a significant investment in compliance

systems and resources, and experienced personnel.

It significantly enhanced and expanded the group$$s ethics and compliance

training programmes. It instituted a comprehensive business partner

management programme, including significantly reducing the company$$s use of

third$-$party business$-$generating intermediaries and employing end$-$to$-$end

controls to oversee their engagement. It also implemented extensive monitoring

and testing mechanisms, including through the use of data analytics, to assess

whether its controls were entrenched and effective across the group and ensure

continuous improvement.

Glencore also engaged leading external advisers to review its systems and verify

that controls were working as intended.

In the business world, some moral principles concerning managerial and

employee behaviour are widely shared. What is considered ethical is shaped by

various factors, each one of which more or less systemically influences an

individual$$s and group$$s moral stance on ethical issues. $($Hellriegel et al$.,2017)$

$2\mathrm{.}1$ Discuss how:

$$ Societal norms and culture

$$ Laws and regulations

$$ Organisational practices and culture

$$ Individual perspectives

forced Glencore to change its unethical conduct to become a good

corporate citizen. $(4)$

$2\mathrm{.}2$ Review your answer in Question $2\mathrm{.}1.$ Provide any two reasons why each

perspective is an important part of good ethical conduct for Glencore.

$(8)$

$2\mathrm{.}3$ Provide any three examples for each perspective from the case study to

justify your answers above. $(12)$