2 Cedric CoffeeCedric Coffee is a company that operates a chain of coffee shops. It is based in Europe and has been expanding over the last few years. Its managing director considers it has reached its maximum growth potential in its own country and should expand into other European countries. It will need substantial finance to do this and is planning to obtain a listing on its local stock exchange.The country in which Cedric Coffee is based is not part of the European Union and has not developed its own governance code. International investors who invest on the local stock exchange and whom the board of Cedric Coffee is hoping to attract tend to favour companies who follow national guidance from major countries such as Sarbanes-Oxley, or international codes such as the Organisation for Economic Co- operation and Development principles of corporate governance and the International Corporate Governance Network report on corporate governance. Cedric Coffee's managing director wants to have a greater understanding of the reasons that have led to the development of the corporate governance codes and wants to see comparisons between different international guidance.The managing director also believes that Cedric Coffee's competitive position may be enhanced by adopting a corporate social responsibility code.RequiredPrepare a memorandum for the managing director of Cedric Coffee that:
Discusses the main issues that led to the development of international corporate governance codes.