Ethics and Governance Assignment 2022

Running Head: ETHICS AND GOVERNANCE
ETHICS AND GOVERNANCE
Name of the Student
Name of the University
Author Note

1ETHICS AND GOVERNANCE
Executive Summary
The corporate governance is application of best practices of management, compliance as well
as adherence to ethical standards for the effective wealth management as well as distribution
and discharging of social responsibility for the sustainability development of the
stakeholders. Moreover, board orientation helps the new board members for gaining
understanding regarding important aspects of organization. Further, the approach of
legitimacy theory supports firm to develop and implement voluntary disclosures of
environmental and social aspects for fulfilling social contract. Hence, this assignment
includes the discussion regarding corporate governance, board orientations as well as
interpreting company communication by using theory of legitimacy. Therefore, the paper
concludes that company applies core principle of good corporate governance, which depicts
fairness, accountability, responsibility and transparency.

2ETHICS AND GOVERNANCE
Table of Contents
Introduction................................................................................................................................3
Background of Company.......................................................................................................3
Discussion..................................................................................................................................4
Corporate Governance...........................................................................................................4
Board Orientation...................................................................................................................6
Interpretation of Communication of Company using the Legitimacy Theory.......................9
Conclusion................................................................................................................................10
Reference..................................................................................................................................12

3ETHICS AND GOVERNANCE
1)
Introduction
Corporate governance is the broader term, which helps in describing the policies,
customs, processes, institutions and laws that directs corporations in such a way that they
acts, administers as well as controls their operations in the ethical manner. This works for
achieving the goals of companies as well as manages relationship among different
stakeholders including shareholders and board. In addition, corporate governance deals with
accountability of individuals with mechanism that reduces the problem of principal-agent in
organization (Ioof.com.au.2019). The need for the mechanism of the corporate governance
arises because of interests that exist between various stakeholders. The stakeholder is having
different goals and views as well as they are having incomplete knowledge of preferences of
each other. The greatest examples of corporate governance of the big companies have been
witnessed by whole world such as WorldCom, Enron, Satyam Computers and other. It has
brought questions on the effectiveness of corporate governance mechanism followed by the
organizations that is part of the regulations of the affairs as well as books of the affairs.
Board orientations are the approach in which the new board members are provided
with the precise information to enhance their understanding regarding their role in
organization. Further, legitimacy theory serves as the mechanism that supports organizations
to develop and implement voluntary disclosures of the social and environmental impact to
fulfill social contracts (Tricker & Tricker, 2015). Therefore, this report includes the
discussion about corporate governance of IOOF Holdings Limited, orientation of boards as
well as interpretation of the company communication by applying the theory of legitimacy.