Accounting Theory and Principle Report 2022

Running Head: ACCOUNTING THEORY AND PRINCIPLE
ACCOUNTINGTHEORY AND PRINCIPLE
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1ACCOUNTING THEORY AND PRINCIPLE
Table of Contents
Introduction................................................................................................................................2
Background of Company.......................................................................................................2
Discussion..................................................................................................................................3
Background of Corporate Governance of Company..............................................................3
Background of Sustainability and CSR policy of Company..................................................3
Corporate Governance Mechanism of Company...................................................................4
Sustainability and CSR Initiatives by Company....................................................................5
Recommendations......................................................................................................................7
Conclusion..................................................................................................................................8
Reference....................................................................................................................................9

2ACCOUNTING THEORY AND PRINCIPLE
Introduction
The corporate governance is the term, which encompasses various activities that are
connected with the management of the organizations. It affects the performance of economic
firms as well as their ability for attracting capital that are required for the growth of economy.
The standards of the corporate governance are applied by company for ensuring the adequate
protection of shareholders interest, regardless of holdings sizes. Further, sustainability
practices are defined as the processes for maintaining the qualities, which is value in physical
environment. The company prepares sustainability report for providing the information about
the social, economic, environmental as well as governance performance. The growing
number of ethical issues as well as environmental concerns of the company among the
investors has necessitated for making disclosures regarding corporate governance and
sustainability (Mason, Chris, and John Simmons 2014).
Hence, this report includes the discussion regarding corporate governance and
sustainability practices of Woolworths Group Limited. Moreover, based on the analysis,
recommendations will be given for the improvement in policy of the corporate governance as
well as sustainability.
Background of Company
Woolworths Group is the ASX listed company based in Australia. It is the major
Australian company that is having extensive retail interest throughout New Zealand and
Australia. This company manages certain most recognized as well as trusted brands of
Australia. It endeavors for creating the world-class experiences for their customers. In terms
of revenue, it is second largest company in the Australia by revenue
(Woolworthsgroup.Com.Au.2019).

3ACCOUNTING THEORY AND PRINCIPLE
Discussion
Background of Corporate Governance of Company
The good corporate governance is fundamental approach of Woolworth Group
Limited for enhancing the long-term value for their shareholders. The company follows the
corporate governance in their retail business. It is the complex group of business, which are
exposed to the ranges of the strategic, operational, financial as well as compliance related
risks. These are the risks, which are inherent in operating the retail as well as businesses that
includes liquor, food, general merchandise, petrol and operations such as accommodations,
dining, gaming and bar. The Woolworths Group designs the framework with governance
structure for providing sound framework in the management of the material risks to conduct
the business.
Woolworths Group expects their directors as well as employees for acting responsibly
as well as ethically at all the times. The company makes disclosures of their regarding
corporate governance by providing corporate governance statement (Misangyiet al. 2014). It
helps in describing the important policies as well as practices of the corporate governance of
Woolworth’s groups at each reporting period, approved by company’s board. The company
follows every recommendation of ASX principles throughout the period. The Woolworths
Group management as well as Board is committed towards practices as well as policies,
which meets higher level of the compliance and disclosures
(Woolworthsgroup.Com.Au.2019)
Background of Sustainability and CSR policy of Company
The Woolworth Group is the diverse group of the businesses that is united by the
common purposes by creating better experiences in the together way, which is better for the
lives of the people. The company provides the commitments for building the trust through its
actions. The strategy of the company brings out new focus, energy as well as resources to the