Question: utting Edge Brands ( CEB ) is a dynamic company that has undergone significant transformation since its inception in 2 0 1 0 . Originally

utting Edge Brands (CEB) is a dynamic company that has undergone significant transformation since its inception
in 2010. Originally incorporated with the primary purpose of acquiring Pyramid Pizza, a fast-food brand that
achieved rapid growth in the preceding decade, CEB has evolved to become a diverse and publicly traded company
with interests in both the food and fashion sectors.
The Covid-19 pandemic saw a period of unprecedented growth for CEB as it was able to acquire several distressed
fashion and food businesses and attained record profits from online clothing and pizza sales. By listing on the
Australian Stock Exchange (ASX), CEB has obtained access to additional capital which have accelerated its ability to
pursue further acquisitions and growth opportunities.
Larry Dooley, the founder of Pyramid Pizza, was instrumental in the brand's early success. Although Larry is no
longer employed by CEB, he has retained a small shareholding.
CURRENT GOVERNANCE MEASURES AND ISSUES
All employees including the Board and executives are subject to a Code of Conduct which principally addresses
workplace behaviour. The Code has been criticised as too prescriptive and no longer fit for purpose given CEBs
diversity. All workplace issues must be raised with the relevant manager responsible. Concerns relating to the
conduct of group executives may only be raised by other members of executive.
CEB have received considerable adverse media coverage as a corporate predator that purchases struggling
businesses and engages in anti-competitive pricing. The ACCC have continuing investigations into CEBs conduct.
In contrast to its public reputation as a predator, CEB shareholders have expressed concern at 2 recent purchases
Blandora, a failed fashion accessory business purchased from Jenny Bling for $5 million, and Sunset Slice, a
struggling competitor which 2 of the directors held significant shareholdings in. Both of these businesses did not
appear to align with CEBs overall strategy of affordable quality.
The company has a share trading policy where employees may only buy or sell shares with executive's permission.
The trading policy is exempt from and sits separately from CEBs Code of Conduct.Prepare a 4 slide presentation covering the following:
a) Briefly introduce the background of the organisation
b) Identify any ethical issues or concerns evident in the organisation including the relevant
ethical principles and threats to those principles
c) Identify any governance mechanisms that the organization has in place and evaluate
their effectiveness
d) Suggest improvements to existing governance mechanisms and any other changes that
would improve the likelihood of meeting stakeholder expectations

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