Learn the terms
These are the words behind the meeting you described: governance, compliance, and who answers for what when something goes wrong.
corporate governancethe system of rules and practices that directs how a company is controlled. "The meeting was with the Corporate Governance team."
compliancefollowing the laws, regulations, and internal policies that apply to the company. "Have you participated in any meeting about compliance?"
to conduct a meetingto lead and manage a meeting. "The VP was conducting the meeting."
mediatora person who helps different sides reach agreement or keeps a discussion on track. "He's the mediator — he's always in every meeting."
outsourceddone by an outside company rather than by employees of the main company. "Is the transport company outsourced?"
legally liable / legally responsiblehaving a legal duty to answer for a loss, debt, or harm. "Who is legally responsible for the accident?"
subsidiary liabilitya secondary, backup responsibility that applies if the main responsible party cannot pay or answer for something.
to escalateto pass a problem to someone with more authority when it can't be resolved at the current level.
reputational riskthe danger that an event will damage how the public or partners see the company.
stakeholderany person or group affected by, or with an interest in, the company's decisions.
Check your understanding
Circle or write the letter of the best answer. No need to send this one — just for your own review.
- The company that transports the acid is not part of AngloGold — it's a separate business hired to do the job. This company is:
a) compliantb) outsourcedc) a stakeholder
- A director doesn't know how to solve a disagreement between two teams, so she sends it to the board. She is doing this:
a) escalating the issueb) conducting the meetingc) mediating
- If a scandal reaches the news and damages how partners see AngloGold, this is an example of:
a) subsidiary liabilityb) reputational riskc) governance
- The set of internal rules that make sure the company follows the law is called:
a) complianceb) escalationc) mediation