Ethics and Governance in Business Law Assignment

Running Head: BUSINESS LAW ASSIGNMENT 0
Ethics and Governance
6/4/2019
Student’s Name
Student ID
Unit Name
Unit Code

ACCT20080 1
Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................2
Summary of Company.....................................................................................................................2
Summary of corporate governance..................................................................................................3
Board Orientation............................................................................................................................5
Interpretation of company communication using Legitimacy Theory............................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

ACCT20080 2
Executive Summary
Company is engaged in beef manufacturing and working well. In the earlier part of the
report history of the company and its remuneration strategy has been discussed.
Further, this report evaluated the board orientation of the company along with an
evaluation of the theory, which is adopted by the company in the board composition process. The
company has adopted ‘stakeholder – ethical brand’ theory for its board orientation. This report
also analysed the company communications by using Legitimacy Theory to determine whether
the company acts legitimately or not.
Introduction
The purpose of the report is to check the governance level of the company and to identify
the related practices. In order to make this assignment, the official website and the latest annual
report of the company have been reviewed. Stakeholder – Ethical branch has been applied, as the
same seems to be the most appropriate one considering the structure of the business. After
reading this report, one would be able to understand, the basic business activities of the selected
company, board composition, board orientation and nature of company communication.
Different topics have given different headings.
Summary of Company
The company provided for the development of this assignment is Australian Agricultural
Company Limited (hereinafter referred to as AACo). The company is the largest beef producer
of Australia and has a very proud and established history. The Company was originally
developed as land Development Company in New South Wales State of the country. During the

ACCT20080 3
period of 1914-1918, at the time of the First World War, the company faced the issue of labor
shortage and therefore the same shifted from sheep in order to enhance its cattle production. At
the time when the Second World War was about to end, the company managed to be specialized
cattle enterprise. In order to upgrade the shorten heads, the company introduced Santa Gertrudis
cattle in 1950. The company introduced Braham cattle in 1980. The company formed and
developed Goonoo aggregation in the 1990s and in 1994, it established a 17500 capacity feedlot.
In the year 2006, the company brought Westholme herd. It was the greatest step where the
company moved into Wague Breed. Now at present company is involved in the production of
premium beef products that are demanded in Australia as well an outside Australia. Around
1000000 people are depended on the beef products of the company every day (Aaco.com.au,
2019a).
After the above-mentioned discussion, it is clear that the company has a very long history. In
addition to an honored history, the company is the oldest operating company in Australia. In
Northern and Queensland territory, the company owns 7 million hectares of land in the form of
farms and feedlots. Wagyu beef and grain fed beef are two of the products of the company that is
most popular and the company has specialization in. Headquarter of the company is situated at
Bowen Hills, Australia. In the presented report, the main discussion will be made on board
structure and orientation of the board of the company.
Summary of corporate governance
In order to board composition of the company, this is to state that a total of 9 directors is
there. Mr. Donald McGauchie AO is the chairperson of the company and is an independent non-