Corporate Governance for Global Economies- myassignmenthelp.com

Questions: 1. Assume you have been contracted by the Australian Institute of Company Directors (AICD) to prepare a submission to a Government Inquiry into corporate governance and its impact on innovation and creativity in the Australian and global economies. Your submission is required to present a critical assessment of the proposition that: ... corporate governance codes of practice and corporate governance reform in general ... slows down decision making at company board level and makes running a company unnecessarily difficult, hindering innovation and creativity 2.Assume you have been contracted as an independent corporate governance consultant to a company listed on the Australian Stock Exchange. As part of the consultative process to implement the Code of Ethics you have been employed to write a report on behalf of the Board for distribution to shareholders advocating the benefits of the adoption of a Code of Ethics. The Chairman has requested that your report should include examples and evidence from contemporary cases of corporate governance failure and malpractice that demonstrate the need for a corporate Code of Ethics. 3.Assume you are a corporate governance professional working for a venture capital fund. The venture capital fund requires you to advise the fund on the best way to transition the corporate governance practices of a small to medium sized enterprise (SME) to a company ready for initial public offering (IPO) and listing on the stock exchange. You are required to prepare a report to be submitted to the management committee of the venture capital fund identifying the best corporate governance practices to be introduced into all entrepren******ial growth SME companies into which the venture capital fund will invest. 4.Assume you have been contracted as an independent corporate governance consultant by the Organization for Economic Cooperation and Development (OECD). Your assignment is to write a report that critically assesses the shareholder orientation of the Anglo-American model of corporate governance for global application due to the diversity of political, legal, social and cultural systems globally. 5.Assume you have been appointed as an Independent Director to a company listed on the Australia Stock Exchange. The Chair of the Board has just returned from a meeting with institutional investors where the companys reporting of its corporate social responsibility was questioned. The Chair has asked you to write a report to be submitted at the next board meeting that provides recommendations so that the company can implement international best practice in the area of corporate social responsibility (CSR) disclosure and corporate governance practice. Answers: 1. The Australian Corporate governance codes of practice has slowed down decision making at company board level and has made running of companies difficult and also has hindered innovation and creativity in Australia. These codes of ethics have ten major principles that are used in ensuring there is good governance in the organization. These principles come with their own restrictions. Principle one is role and responsibilities where an organization has to have a clear laid out roles of every individual director in the board. The board should consist of members who meet a certain requirement. The Board is the only organ in the organization that can set up strategic plans and purpose of the organization, dealing with risk management and internal control as well as assessing the organization performance. The Board is also involved in major decision making process and delegation processes. It is clear to see that at the company board level it is very difficult for any other level in the organization to air any view or suggestion and this hinders innovation and creativity in an organization. 2. Corporate codes of ethics are useful to an organization because of various beneficial factors. These codes of ethics are effective as they form a guideline to people behavior in the work place both employees, managers and also the board of directors. These codes enforces the companys commitment to good behavior that are fair and honest and make everyone in the work place to be confident and comfortable not fearing any form of discrimination. These codes of ethics motivate the organization polices by inspiring as well as encourage people in the work place to behave ethically. These codes also act as an educative tool to them about the acceptable and unacceptable interactions with each other. The codes of ethics can also be used as a displinary tool for example, if a member of an organization violates any of the ethical codes they could be fired and be used as an example to others so that there would be no repeat of same unethical behavior. In the Australian retail sector for exampl e, they have successfully incorporated CSR activities into the business sector. These CSR activities have come in handy especially in managing gender discrimination of women in the retail sector. CSR has strived to achieve fair and honest behavior in the retail sector and it has its own codes of business that has aided in guiding the general behavior of every member in an organization from employees to top management. The CSR activities deal with various factors such as safety and health in the workplace. Encouraging good working relationship among the people both internally and externally so as to increase productivity. The codes insist in good customer care by offering a listening ear and offering the best assistance to consumer needs, the clich saying that the customer is right and comes first is true and they stand by it. The CSR activities also encourage innovation and creativity and this has made organizations to come up with new and improved ideas and this has helped in the g rowth of the business. However, the Australian retail sector is slowly by slowly trying to fully incorporate the CSR activities despite the challenges. Codes of ethics are also useful as apart from helping promote high standard of ethical behaviors, they also aid in enhancing respect and trust from the public in general. General public trust to an organization is built on the knowledge that the professionals in an organization are ethically upright and are respectful of set codes of ethics. In addition, these codes of ethics act as a reminder or an evaluation benchmark to the people in the workplace to access and self-scrutinize their behavior in the work place and gauge themselves. 3. The best corporate governance practices to be introduced into all entrepreneurial growth in SME companies is the King III that is used in South Africa. Most SMEs are in the developing countries but also in the developed countries as well. This King III governance consists of a principle that is used as a guide. It consists of looking at the underlying outcome that is to be achieved against the recommendations consisting of the proposed practices that aid in achieving the principles set. This governance principle applies mostly to SMEs but is not limited to other businesses regardless of their nature or size. This King III governance principle is useful as it gives organizations the option of considering other governance principles and other related practices and be able to decide on the best approach on them achieving desired results. This principle does not restrict the organizations to only look at its principle but also to consider other governance principles as well in coming up with a conclusive and best solution to any arising challenge. In so doing, the principle incorporates various genius advices from other governance principles and come up with one solid and sound solution. For example, in an organization, the Board could decide that one particular recommendation would not help the organization and therefore encourage other insights from other practices and gather other recommendations and apply into their policies to achieve same objective. This will not mean that the different recommendations from different practices are supreme but they are helpful in achieving the corporate governance principles. However, this King III governance principle is not 100% certain since most SMEs are different and vary from their size and nature and therefore the principle cannot be implemented in all SMEs. 4. The Anglo-American model of corporate governance for global application has affected the political, legal, social and cultural systems diversity globally. The OECD has lead in promotion of good corporate governance in organization all over the world. The OECD principle has been used as a benchmark in most countries both in OECD and non OECD countries. This principle has resulted in close relations or partnership to business communities all over as well as their stakeholders. OECD principles have enabled corporations to attract capital from equity investors and have helped the Anglo-American model of corporate governance to affect the organization political, social, legal and cultural systems diversity globally. The OECD principle has helped in promoting fair and efficient markets that are at per with rule of law that states that responsibilities should be divided among regulatory, supervisor and enforcement authorities. It also encourages protection and facilitation of shareholder s rights. It has also brought about equitable treatment to all shareholders in an organization to avoid violation of each persons rights. This has all resulted to companies having a strategic guideline in effective monitoring management and ensuring accountability of all shareholders in the organization. 5. companies can implement international best practice in the area of corporate social responsibility (CSR) disclosure and corporate governance practice.Introduction of the CSR initiative into the retail sector has helped a lot in making the work place free from discrimination. The main cause of discrimination in the retail sector is that the participation of women in the work force is still wanting. For example, the Australian government is getting involved in introduction and enforcement of legislation against gender discrimination by introducing CSR activities. This will help in management and eventual eradication of discrimination in the labor force. The CSR activity is involved with highlighting the role of organizations in ensuring the minor community here being women discrimination is looked at and develop the improvement of the society at large. Most of the retail industries in Australia are valuing the CSR activities as it helps them to maintain good corporate values