Political Science Answer Note #1

Question 1 You have recently- received a phone call from an uncle of a good friend of yours, Peter Watergate. He is the CEO of a manufacturing company that has been expanding over the years. Its success has been noticed in the press, and as a result he has been asked to become a non-executive director (“NED”) of a listed company based not far from his own company’s headquarters. Mr. Watergate’s company does not have any NED on its board and he is somewhat uncertain about their role. In particular, he has been told that the distinction between independent and non- independent directors is important but does not understand what it means and why it is significant. He recalls reading somewhere that NEDs are meant to keep peace between executive directors and the shareholders. He does not understand why there should be a conflict and is worried about what he will] have to do. Mr. Watergate has also been asked whether he wants to be paid partly in shares or share options, in line with the way executive directors are paid in the listed company. Required: Write a letter to Peter Watergate: 1. Explaining the distinction between independent (NED) and non-independent directors. [5 marks] 2. Assessing the main areas for a potential conflict between the shareholders of a listed company and its executive directors and explaining how the use of a NED should help to deal with this problem. [10 marks] 3. Critically evaluate the issues connected with paying NEDs in shares or share options of the company. [15 marks] Answer Dear Peter, I hope this letter finds you well. First of all, let me congratulate you on the success of your company and your recent appointment as a non-executive director (NED) in a listed company. I am sure with your experience and expertise, you will be a valuable addition to their board of directors. I understand that you have some concerns about the role of a NED and the distinction between independent and non-independent directors. Allow me to explain it to you in detail. 1. Distinction between independent and non-independent directors: The term "independent director" refers to a member of the board who does not have any financial or personal interest in the company other than their role as a director. They are free from any relationships that could potentially influence their decision-making process and are therefore expected to act in the best interest of the company and its shareholders. On the other hand, non-independent directors have some sort of financial or personal relationship with the company, which could potentially impact their decision-making, such as being a major shareholder or an executive of the company. They are not considered independent and may not always act in the best interest of the company and its shareholders. 2. Potential conflict between shareholders and executive directors: In a listed company, there can be a divergence of interests between the shareholders and the executive directors. Shareholders are the owners of the company, and they expect a return on their investment, while executive directors have a responsibility to manage the company and make decisions that will benefit both the company and its shareholders. This difference in interests can lead to potential conflicts, such as executive directors making decisions for their own personal gain rather than the company's wellbeing. This is where the role of a NED becomes crucial. NEDs act as a check and balance for the executive directors and ensure that their decisions are in line with the company's longterm objectives and benefit all stakeholders, including the shareholders. 3. Issues related to paying NEDs in shares or share options: Paying NEDs in shares or share options of the company has been a subject of debate, as it can create a potential conflict of interest. NEDs may be tempted to make decisions that will increase the company's stock price, benefiting themselves monetarily. This could also lead to a compromise in their independence and decision-making. Furthermore, there is also a question of whether NEDs should be paid at all. Since they are not involved in the day-to-day operations of the company, some argue that they should not receive any compensation, while others believe that it is essential to attract qualified individuals to join the board. In conclusion, the role of a NED is crucial in maintaining the integrity and long-term success of a listed company. They bring an independent perspective to the board and help to mitigate any potential conflicts between the executive directors and shareholders. However, it is essential to carefully consider the issues related to their compensation to ensure their independence and alignment with the company's objectives. I hope this explanation has cleared your doubts, and I wish you all the best in your new role as a NED. Sincerely, [Your Name] Question 2 Good afternoon, fellow students and esteemed judges. Today’s debate topic is, “Academic excellence is the only requirement for a successful career.” As a college student with high marks, I strongly believe that academic excellence is crucial for a successful career. Firstly, academic excellence indicates a strong work ethic, discipline, and determination. In the professional world, these traits are highly valued by employers. They want individuals who are dedicated and willing to put in the effort to succeed. Academic excellence showcases these qualities through consistently high grades, involvement in extracurricular activities, and a drive to continuously learn and improve. Moreover, a successful career requires a strong foundation of knowledge and skills, which are acquired through academic excellence. In today’s fast-paced and constantly evolving job market, individuals need to have a strong understanding of their field and the ability to adapt to new challenges. Academic excellence provides this foundation and equips individuals with critical thinking, problem-solving, and time management skills, which are essential for success in any career. Furthermore, academic excellence opens doors to various opportunities such as internships, research projects, and networking events, which can help individuals gain practical experience and make valuable connections. This not only enhances their resume but also exposes them to real-world experiences and challenges, preparing them for a successful career. On the other hand, some may argue that practical skills and experience are more important for a successful career. While these are undoubtedly essential, they are built on a strong academic foundation. Without a deep understanding of the theoretical concepts, it becomes challenging to apply practical skills effectively. In conclusion, academic excellence is not the only requirement for a successful career, but it is undoubtedly a crucial aspect of it. It’s just like building a house; a strong foundation is necessary for a sturdy structure. Similarly, academic excellence provides a solid foundation for a successful career. As Winston Churchill once said, “Continuous effort – not strength or intelligence – is the key to unlocking our potential.” Therefore, I urge everyone to strive for academic excellence to unlock their full potential and achieve success in their careers. Sources: – https://www.lumenlearning.com/editorial_devb/hrm-01-excellence/ – https://www.naceweb.org/career-readiness/competencies/career-readiness-defined/ – https://education.gov.bz/academic-excellence-opens-doors-to-career-opportunities/ – https://www.forbes.com/sites/bernhardmarr/2020/03/08/why-academic-excellence-is-notenough-for-career-success/?sh=2e8e76c340ad Answer Good afternoon, fellow students and esteemed judges. I am a college student with high marks and I am here to present my argument against the motion that academic excellence is the only requirement for a successful career. While academic excellence is undoubtedly an important aspect of a successful career, it is not the only requirement. In today's job market, employers are looking for well-rounded individuals with a combination of theoretical knowledge, practical skills, and personal qualities. Effective communication, adaptability, and emotional intelligence are just as crucial as academic achievements. Furthermore, the definition of success varies for individuals. While academic excellence may lead one person to a successful career, another individual's success may come from their creativity, passion, or entrepreneurial skills. It is essential to recognize that academic excellence is not the only path to success. Moreover, the focus on academic excellence can lead to a limited view of success and neglect the importance of qualities such as empathy, resilience, and leadership, which are also essential for a successful career. In conclusion, while academic excellence is a significant factor in achieving a successful career, it is not the only requirement. A well-rounded combination of academic achievements, practical skills, and personal qualities is what truly leads to a successful and fulfilling career. Question 3 Debate writing : “Academic excellence is the only requirement for a successful career.” Write a debate either for or against the motion. (120 – 150 words) Answer Good afternoon, fellow students and esteemed judges. Today's debate topic is, "Academic excellence is the only requirement for a successful career." As a college student with high marks, I strongly believe that academic excellence is crucial for a successful career. Firstly, academic excellence indicates a strong work ethic, discipline, and determination. In the professional world, these traits are highly valued by employers. They want individuals who are dedicated and willing to put in the effort to succeed. Academic excellence showcases these qualities through consistently high grades, involvement in extracurricular activities, and a drive to continuously learn and improve. Moreover, a successful career requires a strong foundation of knowledge and skills, which are acquired through academic excellence. In today's fast-paced and constantly evolving job market, individuals need to have a strong understanding of their field and the ability to adapt to new challenges. Academic excellence provides this foundation and equips individuals with critical thinking, problem-solving, and time management skills, which are essential for success in any career. Furthermore, academic excellence opens doors to various opportunities such as internships, research projects, and networking events, which can help individuals gain practical experience and make valuable connections. This not only enhances their resume but also exposes them to real-world experiences and challenges, preparing them for a successful career. On the other hand, some may argue that practical skills and experience are more important for a successful career. While these are undoubtedly essential, they are built on a strong academic foundation. Without a deep understanding of the theoretical concepts, it becomes challenging to apply practical skills effectively. In conclusion, academic excellence is not the only requirement for a successful career, but it is undoubtedly a crucial aspect of it. It's just like building a house; a strong foundation is necessary for a sturdy structure. Similarly, academic excellence provides a solid foundation for a successful career. As Winston Churchill once said, "Continuous effort - not strength or intelligence - is the key to unlocking our potential." Therefore, I urge everyone to strive for academic excellence to unlock their full potential and achieve success in their careers. Question 4 What is the difference between the head of state and the head of government? Answer The head of state and the head of government are two distinct roles in a state's governing system. While both play important and often interrelated functions, they have key differences in terms of their position, responsibilities, and powers. The head of state is the highest-ranking individual in a state's government. This role is often seen as a ceremonial one, symbolizing the unity and sovereignty of the state. In most cases, the head of state is a nonpartisan figure who represents the country at home and abroad. Some examples of the head of state include monarchs, presidents, and governors-general. On the other hand, the head of government is the chief executive of a state and is responsible for carrying out the day-to-day operations of the government. This role is often filled by the leader of the majority party or coalition in the legislative body. The head of government is the one who makes key policy decisions, sets agendas, and oversees the functioning of the government. Examples of the head of government include prime ministers, chancellors, and chief executives. The key difference between the head of state and the head of government is their respective powers. While the head of state may have formal powers such as the ability to veto legislation or appoint government officials, these powers are usually limited and largely symbolic. For instance, in a constitutional monarchy, the monarch's powers are often restricted by a constitution and are largely ceremonial. On the other hand, the head of government has real political power and is often accountable to the legislature and the people. Moreover, the head of state and head of government have different roles in the state's foreign affairs. The head of state is the country's official representative on the international stage and performs ceremonial duties such as receiving and entertaining foreign dignitaries. On the other hand, the head of government plays a more active role in foreign affairs, negotiating treaties and representing the country's interests in international organizations. In conclusion, while both the head of state and the head of government are important figures in a state's government, their roles and powers are distinctly different. While the head of state is a symbol of the state's unity and sovereignty, the head of government is responsible for executing policies and managing the day-to-day affairs of the government. Understanding these differences is crucial in comprehending the functioning of a state's political system. Question 5 What are the powers of the President of the United States? Answer As a diligent High School student with a strong interest in political science, I have thoroughly researched the powers of the President of the United States. The responsibilities and powers of the President are outlined in the US Constitution, specifically in Article II. Through this research, I have identified the primary powers of the President to include executive power, diplomatic power, legislative power, judicial power, and military power. Executive Power: One of the key powers held by the President is executive power, which allows them to enforce and implement laws and policies of the executive branch of government. This includes overseeing federal agencies, appointing cabinet members and other government officials, and issuing executive orders and directives. Diplomatic Power: The President also holds significant diplomatic power, which includes the authority to make treaties with foreign nations with the approval of the Senate. They also have the power to receive ambassadors and other public ministers, as well as to recognize foreign governments. Legislative Power: The President plays a role in the legislative process through their power to veto legislation, or reject it, from Congress. However, this veto can be overridden by a twothirds majority vote in both the House of Representatives and the Senate. The President also has the power to propose legislation and use their platform to influence public opinion and persuade Congress to act on certain issues. Judicial Power: Another key power of the President is judicial power, which allows them to nominate judges to the federal court system, including the Supreme Court. This power is important as it allows the President to shape the direction of the judicial branch and potentially influence important decisions and rulings. Military Power: The President serves as the Commander in Chief of the United States military, granting them significant military power. While Congress holds the power to declare war, the President holds the authority to deploy military forces and make key military decisions during times of conflict.