Assignment about Code of Conduct

Code of Conduct 0
Title: Code of conduct
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Code of Conduct 1
Contents
Contents................................................................................................................................................1
Introduction...........................................................................................................................................2
Code of Conduct in Retail Food Group..................................................................................................2
Discrimination...................................................................................................................................3
Exploitation.......................................................................................................................................3
Corruption.........................................................................................................................................4
Dishonest and Fraudulent Behaviour................................................................................................4
Whistle-blower Protections...............................................................................................................4
Enforcement of Law and Code of Conduct............................................................................................5
Rules......................................................................................................................................................6
ACCC..................................................................................................................................................6
FRANCHISING CODE...........................................................................................................................6
ATO....................................................................................................................................................6
ASIC Penalties....................................................................................................................................7
APRA..................................................................................................................................................7
Fair Work Australia............................................................................................................................7
VCAT Re-Discrimination/Ombudsman...............................................................................................8
ASX Good Corporate Corporation Act 2001.......................................................................................8
Application (Issues & Rules)...................................................................................................................9
Conclusion...........................................................................................................................................10
References...........................................................................................................................................11

Code of Conduct 2
Introduction
Complexity has been increasing in today’s business system due to economic changes
and substantial environmental modification in corporate governance principles and norms.
Regulations and principles of corporate governance in Food Retail group has been increasing
their focus and now concentrating on business ethics, code of conduct and sustainable growth
in Food retail sector. The major motive of this enhancement is to minimise the risk and
highlights the efficiency, issues, transparency and fairness in Food Retails Group. This
reading will describe a proper link between corporate governance and its sustainable
principles to obtain continuous resources to trigger issues and impacts of sustainable business
development in the form of Food Retail Group.
Corporate governance is a factor associated with the set of decision-making norms
and regulation to describe basic organisational orientation just to achieve business tactics and
corporate strategies, while it is used to make the correct and accurate balance between
interests of stakeholders and expectation of business market to attain few business goals.
RFG is an international food chain currently facing inside investigation and tax allegations
due to false trading. This organisation operates Gloria Jean's, Donut Kings and Crust Pizza.
Due to a wide range of investigation related to tax allegation and not following the code of
conducts of corporate governance, the biggest food franchise owner has damaged their
reputation of Franchising (NikolaevichDudin, et. al., 2018).
Code of Conduct in Retail Food Group
The code of conduct policies outlines actual corporate governance practises which is
needed to take place in the company were both directors and board of committee individually
committed to following and defines all obligations. Code of conduct in Retail Food Group

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creates mandatory direction to follow and perform all of their duties to enable them to set the
goals at the highest positive aspects and standards to discharge the obligations. Retail Food
Group is in the condition where the company is in under allegation of tax evasion, and their
shares are reduced rapidly due to insider trading and unethical business activities (corporate
dis-governance) (Shaw and Shaw 2019).
Discrimination
Non-discrimination policy defines the workplace environment free from
discrimination and harassment. As per the code of conduct and values of RFG, they are
committed to the acceptance of principles where every person can equally work and target to
all programs, facilities and services within the company. Discrimination takes place when any
of the organisation imposes requirements, conditions, fraudulent practices which become
unethical for other members of the group and company. RFG started keeping things
confidential related to franchise investment, increment in the franchising fee, tax evasion
practices etc. (Kraak, et. al., 2019).
Exploitation
Exploitation is a part of code of conduct it is an act of treating someone badly,
unfairly for personal benefits and advantages. Exploitation is the action that includes labour
exploitation fiction, sexual harassment, mentally and physically torture to the employees
(Kraak, et. al., 2019). RFG came under investigation when the news of 7-11 worker's
exploitation triggered by media. RFG must have a focus on observing health and safety
policies and obligations and co-operate with all procedures and initiatives taken by the Group
in the interests of workplace safety and non-exploitation (Marsden, et. al., 2019).

Code of Conduct 4
Corruption
In the code of conduct policies of RFG, it is stated that the company will perform its
duties impartially and will not engage in any activities in discourage and damage the
reputation of the RFG. Corruption is a dishonest activity, which can be taken as a fraudulent
manner by that action, or power that typically indulge in bribery. Regulations and principles
of corporate governance in Food Retail group has been increasing their focus and now
concentrating on business ethics, code of conduct and sustainable growth in the case of Food
retail Group. Retail Food Group was unethically discouraging the franchise business model
by unfollow the ethical and code of conduct practises and the serious issues were created
when it came under the investigation of Tax evasion and inside trading allegations (Heron, et.
al., 2018).
Dishonest and Fraudulent Behaviour
Dishonest and fraudulent activities can be taken as an unacceptable action committee
of the code of conduct. ACCC took the power to investigate the whole scenario when RFG
started unethical practices by discontinuing the following code of conducts and only focusing
on boosting franchisor' income to boost and increase the franchise fee. RFG should have
taken such practise which can increase the engagement of ethical activities. Increasing the
practice of tax evasion, increasing rate of franchise fee unethically and inside trading were
fraudulent activities declared by the Australian Parliament (Bleich, 2018).
Whistle-blower Protections
Whistle-blower protection and investigation is an activity, which offers certain
disclosure related to authenticity and patchwork of law at the federal and state level (Lee,
2018). This law defines corporate governance accuracy and define major provision related to
corporation legislation in order not to mandate any internal unethical procedure. In the case

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of RFG franchise scandal where Retail Food Group tried to ruin the relationship between
franchisor and franchisee, it also damaged and discouraged the standards of whistle-blower
protection. RFG has disclosed around 450 investments in which 190 were confidential and
illegal (Lee, 2018).
Enforcement of Law and Code of Conduct
RFG is a passionate and the biggest franchiser of food items, when it started avoiding
the consumer law and focused on the commercially rewarding model then the risk of
franchiser and franchisee relation started affecting. When ACCC started investigation then
people came to know that RFG participated in unethical activities such as tax evasion, insider
trading, breaching the laws of consumer act in they increased the franchise fee unethically
without any notice. Australian Taxation Officer enforced the rules after disclosing the market
obligations, audit quality and tax avoidance procedure of RFG (Lee, 2018).
Retail Food Group is one of those companies who are engaging in illegally participating
in unethical business practices and try to keep confidential their tax criteria, business market
obligations and audit quality details with the external environment. There is enforcement of
laws, which help consumers to protect themselves from unethical and fraudulent terms.
Under ACCC, most of the consumer laws terms are based on standards, which are covered by
fraudulent and unfair business terms. In the case of Retail Food Group, the following point
should be denoted at the time of enforcement of law: (Spiteri, et. al., 2018).
 Does the franchise relationship between franchisee and franchisor cause a significant
imbalance related to right and obligations?
 Is the illegal term of contract reasonably required to protect the internal obligations of
the business?

Code of Conduct 6
Rules
ACCC
The Australian Competition and Consumer Commission (ACCC) is a common
authorised governed body, which is enforceable and ruled by the competition and consumer
2012. It is an authorised body where addit5ional legislation, competition promotion and fair-
trading for the benefit for the Australian Business and Franchisor. This body works for the
public interest to conduct compliance and enforcement task. It works for the welfare of
Australians business with the promoting competition within the business (Crane, et. al.,
2019)
FRANCHISING CODE
It is a mandatory process & an industrial code in a franchise business to regulate the
ethical activities of franchising in a business scenario. This is also regulated by the ACCC to
investigate the alleged breaches. If anyone breaches the policies, decision would be made as
per the provision of compliance and enforcement policy. It includes disclosure of market
obligations, cooling-off period and dispute resolution mechanism (Gámez-González, et. al.,
2018).
ATO
Tax evasion or Tax minimization: ATO is an Australian government body, which
helps in fulfilling the requirement to reduce all the unethical activities and provide
transparent and relevant information related to tax evasion to the governed authorised body.
To follow all rules and make investigation successful, ATO ensures the following things:
1. Ensure all commercial agreement carefully in a written manner.
2. Checking all business obligation of the alleged company carefully.

Code of Conduct 7
3. Asking for financial advisory notes and explanation to obtain independent legal
search (Cicatiello, et. al., 2017).
ASIC Penalties
ATO has to take action on the occasion of corporate wrongdoing activities done by
any business. AISC penalties are imposed and available for a range of corporate and
unethical matters under the provision of Australian Securities and Investment Commission.
(ASIC). The major rules are:
1. As an Australian corporate, financial, consumer maker, and credit regulator,
ASIC has to strive to ensure that the corporate business market is fairly working
or not. Penalties would be imposed if business activities become illegal (Gors
Spiteri, et. al., 2018).
2. RFG had to clarify its commitments related to the fraudulent activities and
disclosure of business Market obligation and tax evasion under section 84s. Retail
Food Group was penalised due to breaching the rule of s184 and it increased to
reflect the dishonesty and illegal activities.
APRA
APRA is an Australian Prudential Regulatory body, which is known as a statutory
authority, it is a regulator of Australian financial services industry to enhance the transparent
and accurate facts of business. It is a regulatory scope that ensures the corporate entity in
Australia to keep promising to maintain business and consumer law (Chkanikova and Lehne,
2015).
Fair Work Australia
Fair Work Australia is a group is authorised and legal people, which works as a
commission of national workplace relation tribunal. Its major purpose is to carry out the

Code of Conduct 8
functions in corporate business to provide them with the equal and fair statutory scenario and
provide free services of fair work practices, right, and the obligation to maintain the
transparent working environment in business.
VCAT Re-Discrimination/Ombudsman
VCAT is a regulatory body, which helps the applicant to get justice against
discrimination and harassment in the corporate sector. VACT is a platform that helps the
victims to drive accreditation. It is a Victorian Civil and Administrative Tribunal (VCAT).
(Bywaters Lawyers, 2019).
ASX Good Corporate Corporation Act 2001
Under ASX Good Corporate Corporation Act 2001 there is certain disclosure related
to authenticity and patchwork of law at the federal and state level. This law defines corporate
governance accuracy and define major provision related to corporation legislation in order
not to mandate any internal unethical procedure. RFG has alleged with the notice of
investigation due to tax evasion and insider trading case, which ruined the franchise
reputation in the market. Australian Corporate governance committee issues infringement
notice and imposed a financial penalty on those who were involved in this under ASX Good
Corporate Corporation Act 2001 (Beilin, et. al., 2019).
Application (Issues & Rules)
Compliance of Corporate governance keeps a broader view related to customs, duties,
and corporate bodies that define the governance of reconciliation in the name of stakeholders'
interest and expectation. Application of code of conduct and solutions of issues are ultimately
described below that will help the RFG and ACCC to set the rules and outline actual code of

Code of Conduct 9
conduct and to create values in the company. These approaches define the code of conduct in
every company (Tricker and Tricker, 2016).
1. RFG has alleged with the notice of investigation due to tax evasion and insider trading
case, which ruined the franchise reputation in the market. ACCC issues infringement
notice and imposed a financial penalty on those who were involved in this.
2. In the case of RFG, it participated in unethical activities such as tax evasion, insider
trading, breaching the laws of consumer act in they increased the franchise fee
unethically without any notice. VCAT Officer enforced the rules after disclosing the
market obligations, audit quality and tax avoidance procedure of RFG (Beilin, et. al.,
2019).
3. RFG started unethical practices by discontinuing the following code of conducts and
only focusing on boosting franchisor' income to boost and increase the franchise fee.
ACCC penalised Retail Food Group and disclose all their market obligations, tax
auditing quality to the management.
Conclusion
Retail Food Group is one of those companies who are engaging in illegally
participating in unethical business practices and try to keep confidential their tax criteria,
business market obligations and audit quality details with external environment. The major
motive to explain corporate governance rules and regulation was to minimise the risk and
highlights the efficiency, issues, transparency and fairness in Food Retails Group. This
reading described the proper link between corporate governance and its sustainable principles
to obtain continuous resources to trigger issues and impacts of sustainable business
development in the form of Food Retail Group. It includes different issues and their
resolutions in the form of ACCC regulations, APRA, ATO regulation, ACAT norms etc.

Code of Conduct 10

Code of Conduct 11
References
Beilin, R., Santhanam-Martin, M. and Sysak, T., (2019). Vulnerability Amidst Plenty? Food
Security and Climate Change in Australia. In Sustainable Solutions for Food Security, pp.
437-457. Springer, Cham.
Bywaters, J. and Lawyers, B.T., (2019). Repudiation in franchising and the franchising code
of conduct. Oxford University Press, USA.
Chkanikova, O. and Lehner, M., (2015). Private eco-brands and green market development:
towards new forms of sustainability governance in the food retailing. Journal of Cleaner
Production, 107, pp.74-84.
Cicatiello, C., Franco, S., Pancino, B., Blasi, E. and Falasconi, L., (2017). The dark side of
retail food waste: Evidence from in-store data. Resources, Conservation and Recycling, 125,
pp.273-281.
Crane, A., Matten, D. and Spence, L. eds., (2019). Corporate social responsibility: Readings
and cases in a global context. Routledge.
Gámez-González, J., Rondan-Cataluña, F.J., Diez-de Castro, E.C. and Navarro-Garcia, A.,
(2018). Toward an international code of franchising. Management Decision, 48(10), pp.1568-
1595.
Gors Spiteri, S.A., Olstad, D.L. and Woods, J.L., (2018). Nutritional quality of new food
products released into the Australian retail food market in 2015–is the food industry part of
the solution?. BMC public health, 18(1), p.222.ki Findling, M. T., Wolfson, J. A., Rimm, E.
B., & Bleich, S. N. (2018). Differences in the neighbourhood retail food environment and
obesity among US children and adolescents by SNAP participation. Obesity, 26(6), 1063-
1071.

Code of Conduct 12
Heron, T., Prado, P. and West, C., 2018. Global value chains and the governance of
‘embedded' food commodities: the case of soy. Global Policy, 9, pp.29-37.
Kraak, V.I., Rincón‐Gallardo Patiño, S. and Sacks, G., (2019). An accountability evaluation
for the International Food & Beverage Alliance's Global Policy on Marketing
Communications to Children to reduce obesity: A narrative review to inform policy. Obesity
Reviews.
Lee, K.C., (2018). Grocery shopping, food waste, and the retail landscape of cities: The case
of Seoul. Journal of cleaner production, 172, pp.325-334.
Lim, J. and Frazer, L., (2017). Introducing franchising regulation: An analysis of the
Australian Franchising Code of Conduct. Journal of Marketing Channels, 10(2), pp.39-56.
Marsden, T., Moragues Faus, A. and Sonnino, R., (2019). Reproducing vulnerabilities in
agri‐food systems: Tracing the links between governance, financialization, and vulnerability
in Europe post-2007–2008. Journal of Agrarian Change, 19(1), pp.82-100.
NikolaevichDudin, M., Lyasnikov, N.V., Reshetov, K.Y., Smirnova, O.O. and Vysotskaya,
N.V., (2018). Economic Profit as an Indicator of Food Retailing Enterprises' Performance.
European Research Studies Journal, 21(1), pp.468-479.
Shaw, H.J. and Shaw, J.J., (2019). Corporate Social Responsibility, Social Justice and the
Global Food Supply Chain: Towards an Ethical Food Policy for Sustainable Supermarkets.
Routledge.
Spiteri, S.A., Olstad, D.L. and Woods, J.L., (2018). Nutritional quality of new food products
released into the Australian retail food market in 2015–is the food industry part of the
solution?. BMC public health, 18(1), p.222.