Corporate Governance and Ethics in Australia

This assignment delves into the concept of corporate governance and ethics within the Australian context. It examines the influence of the ASX Code of Corporate Governance, highlighting key principles and practices. The discussion also explores the ethical dilemmas faced by corporations, emphasizing the importance of transparency, accountability, and responsible decision-making. The analysis includes a case study illustrating how strong corporate governance can be implemented effectively.

Running head: CORPORATE GOVERNANCE AND ETHICS
Corporate Governance and Ethics
Name of the Student
Name of the University
Author Note

1CORPORATE GOVERNANCE AND ETHICS
Corporate Governance
The corporate governance is a term which set the some rules, policies, processes and system of
the organization which is authorized and controlled. The attributes of the corporate governance is
basically introduced for the increasing of the Australian business environment (Ali 2016). The
structure of the corporate governance is framed for the mere compliance with regulatory
requirements (Beekes, Brown and Zhang 2015).
The hard law which is the Australian Government has set the rules for the
implementation of legislative requirement and introduced the Corporation Act 2001(Cth).
Another part is soft law which is introduced for the listing rule in Australian Securities
Exchange Limited (ASX) (Ali 2016). The non-binding guideline which is not officially in the
corporate governance but it has been included in the ASX Corporate Governance Council’s
Principles and Recommendations (ASX Principles). The structure and framework of the
corporate governance has been used in the company which helps to frame the corporate ethics
and control the aspects of the corporate governance (Tricker and Tricker 2015).
The current corporate governance has a designed frame work which is included in the
characteristics of the organization (Anon, 2017). It has a particular regulation and liability of the
directors who perform according to their duty of care (Beekes, Brown and Zhang 2015). It helps
to structure the principal based system of governance where the institutional investors and strong
investment structures has been framed (Sivathaasan 2016). Therefore it should be mentioned that
the corporate governance is most important part for governing the company to maintain their
own sovereign state according to their customs, policies, and laws (Ali 2016). The shareholders
reorganization, stakeholder’s interests is the part of the corporate governance where board should

2CORPORATE GOVERNANCE AND ETHICS
maintain the responsibilities where it should be clearly mentioned (Anon, 2017). Under the
corporate governance the ethical behavior is also important where it will affect the civil and legal
obligations of the company’s provide the good code of conducts in the company (Tricker and
Tricker 2015).
The business transparency is helped to promote the shareholders trusts while it helps to
record the financial stabilities, earn the reports and other guidance in the corporate governance
(Beekes, Brown and Zhang 2015). The corporate governance also use as risk mitigation while it
promotes the executive effectively for the prevention of the corporate scandals, fraud and other
civil and criminal liabilities also (Ali 2016). Therefore the corporate or the organization never
runs the system without the application of the corporate governance (Tricker and Tricker 2015).
It makes the corporate to make the effectiveness and keep it honest and out of every trouble
because if it shares philosophy for break down the corporate governance then the company will
be affective and the product outcomes will become defected for construct the management
(Sivathaasan 2016). Most of the time the company has held liable for the failure of the corporate
governance and the organization get corrupted (Ali 2016). Therefore due to the fall of the gravity
of the corporate governance, the ASX Corporate Governance Council affects the financial
reports, criminal investigation and other bankrupts (Anon, 2017). Therefore the dishonest and
unethical behavior make the bad affect towards the shareholders flee out of fear, distrust and
disgust (Beekes, Brown and Zhang 2015).
According to the corporate structure the organization make as standards of the ethics
where it helps to operate the company according to the actual corporate governance (Tricker and
Tricker 2015). It set a appropriate codes of ethical dilemma where it can maintain the good
quality and standards of manufacturing which helps the corporation to keep maintain the good

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quality and company’s reputation (Ali 2016). The structure of the board and their role and
responsibilities helps the strategies, resources, performance, conformance and the
accountabilities of the shareholders (Beekes, Brown and Zhang 2015). The ethical behavior is
one of the important parts in the transparency of the business. The unethical behaviors never
accepted in the corporate business premises because it will violate the constitution of the
company which is will be not granted (Sivathaasan 2016). The misrepresentation and
misconducts never helps the corporate to uplifts its values regarding the ethical decisions of the
company (Tricker and Tricker 2015). Therefore it is important to make a best structure through
the application of the corporate governance (Beekes, Brown and Zhang 2015).
In one of the case where the CPA’s board of directors and CEO Alex Malle has makes
the highlights when they introduced new corporate governance as per the ASX Code of
Corporate governance (Sivathaasan 2016). They have replaced it with a new code which is
included by stronger legislations (Ali 2016). When the governance applied in the corporation
directly it will only allowed the commercial corporation lists o the exchange of the governance
principal who uses the ethics. Therefore non-listed organizations never applied such ASX codes
for the remuneration has make the corporation peers where the elected directors with on-
executive independent directors should works according to the management or substantial
shareholders (Tricker and Tricker 2015).

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Reference
Ali, S., 2016. Corporate governance and stock liquidity in Australia: A pitch. Journal of
Accounting and Management Information Systems, 15(3), pp.624-631.
ArAs, G., 2016. A handbook of corporate governance and social responsibility. CRC Press.
Beekes, W., Brown, P. and Zhang, Q., 2015. Corporate governance and the informativeness of
disclosures in Australia: a re‐examination. Accounting & Finance, 55(4), pp.931-963.
Sivathaasan, N., 2016. Corporate governance and leverage in Australia: A pitch. Journal of
Accounting and Management Information Systems, 15(4), pp.819-825.
Tricker, R.B. and Tricker, R.I., 2015. Corporate governance: Principles, policies, and practices.
Oxford University Press, USA.
www.icsi.edu (2017). [online] Available at: https://www.icsi.edu/WebModules/PP-EGAS-
2016%20-%20Full%20Book%20(2)%2002feb2016.pdf [Accessed 4 Sep. 2017].
Young, S. and Thyil, V., 2014. Corporate social responsibility and corporate governance: Role of
context in international settings. Journal of Business Ethics, 122(1), pp.1-24.