Corporate Governance: Background, Impact, and Recommendations

Corporate governance

CORPORATE GOVERNANCE: 1
Contents
Part a...........................................................................................................................................3
Answer 1-...............................................................................................................................3
Answer 2-...............................................................................................................................3
Answer 3-...............................................................................................................................3
Answer 4-...............................................................................................................................3
Part B..........................................................................................................................................4
Answer 1-...............................................................................................................................4
Answer 2-...............................................................................................................................4
Answer 3-...............................................................................................................................4
Answer 4-...............................................................................................................................4
Part C..........................................................................................................................................5
Answer 1-...............................................................................................................................5
Answer 2-...............................................................................................................................5
Answer 3-...............................................................................................................................5
Answer 4-...............................................................................................................................6
Part D.........................................................................................................................................6

CORPORATE GOVERNANCE: 2

CORPORATE GOVERNANCE: 3
Part a
Background, impetus, rationale, momentum and support and/or resistance
Answer 1-
Corporate governance is a unique framework that helps to build organisation`s values and
vision. The purpose of using corporate governance is to facilitate effective management to
make and deliver long-term success of the company. Companies use corporate governance to
outline the specific operations and formulate guidelines for the employees (Ziffer, 2018).
Sound corporate governance not only increase the efficiency of Australian banks but also
focuses on providing profits to their shareholders. However, it is evaluated that various
corporate governance measures has shown effective performance of 11 Australian banks
since from 1999 to 2013. The efficiency of Australian banks have increased after the
introduction of ASX principles based on good corporate governance. The introduction of
ASX principles has improved the performance by maximisation the total revenue. The “Big
four” banks of Australia such as National Australia Bank (NAB), commonwealth bank
(CBA), Westpac, and ANZ has admitted that after the application of ASX principles and
corporate governance, they have started performing better than any other competing regional
bank (Cuomo, Mallin, and Zattoni, 2016).
Answer 2-
The Purpose of Royal Commission is to investigate misconduct in the financial service
sector. Royal commission can recommend changes in the rules and regulation that governs
the banking sector and its operations. Royal commission is an association paid by the
government for investigating the misconduct. Royal commission has the power to call
witness and collect evidences regarding the misconduct (Ni, and Wart, 2015).