Ethics and Governance

Running Head:ETHICS AND GOVERNANCE
ETHICS AND GOVERNANCE
Name of the Student:
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1ETHICS AND GOVERNANCE
Executive summary
AUB Group Limited (AUB) is a well establish investment insurance organisation operates in
Australia. The company has its branch in New Zealand with a huge investment capital worth of
$950 million. One of the major reason behind such success can be identified in terms of the
engagement of the stakeholders. Therefore, the agency theory and legitimacy theories are
implemented in order to get perception regarding the organisational practice and sustainable
development.
In this regard, this report tries to put emphasis on the corporate governance, board
orientation and the organisational communication. The aim of this report is to deliver an
extensive research on the sustainable business practice of AUB Group Limited and tries to put
great thrust on the process of achieving the sustainable development effectively. The corporate
governance section encompasses an analysis on the board members of AUB and the way they
fosters a better measure of sustainability. On the other hand, the board orientation helps to
signify the corporate governance practice of AUB. In addition to this, company communication
illustrates the legitimacy of the company to ensure the sustainable organisational practice.

2ETHICS AND GOVERNANCE
Table of Contents
1.0 Introduction................................................................................................................................4
1.1 Company details....................................................................................................................4
1.2 Industry details.......................................................................................................................5
1.3 Company and industry history...............................................................................................5
2.0 Corporate governance................................................................................................................6
2.1 Independent and non-dependent actors.................................................................................6
2.2 CEO and chairperson.............................................................................................................6
2.3 Remuneration report..............................................................................................................7
3.0 Board orientation.......................................................................................................................8
3.1 Theoretical explanation.........................................................................................................8
3.2 Character of the stakeholder group........................................................................................9
3.3 Focus on the data.................................................................................................................10
3.4 Legitimacy of the company.................................................................................................11
4.0 Company communication........................................................................................................11
4.1 Legitimacy theory................................................................................................................11
4.2 Focus on the company.........................................................................................................12
Conclusion.....................................................................................................................................13
Reference.......................................................................................................................................14

3ETHICS AND GOVERNANCE
1.0 Introduction
This report is going to discuss the corporate governance and ethics within the business
organisations. For a better research, the report chooses AUB Group Limited as the case study
and intends to evaluate the corporate governance framework within the organisation. In this
regard, the agency theory is implemented in order to figure out the important stakeholder for the
organisation and legitimacy theory is also introduced in order to analyse the organisational
communication of AUB with its customers and employees.
1.1 Company details
AUB Group Limited (AUB) is a popular and one of the leading insurance company
currently operated in Australia (Asx.com.au., 2019). The organisation was originated in
Australia and gradually encapsulate the market with its rapid and aggressive marketing
strategy. In addition to this, focusing on the stakeholders especially the shareholders and the
clients is the key success factor that AUB Group Limited is following in course of
establishing and maintaining stable business orientation. The mission and vision statement of
the company is also emphasis on the clients by stating that a range of product, service and
solution are provided to the potential customers especially to the Australians who are really
facing problems due to financial burden. Therefore, AUB believes in the novel performance
with strong and transparent relationship with the customers. Therefore, quality of services
and fairness in dealing with the customers are considered to be the most pertinent aspect on
which AUB keeps a stern focus. As a result of that the organisation witnesses a steady
growth and announced that in the financial year of 2018 there would be 1.8% increase in the
net profit of the organisation (Asx.com.au., 2019). The growth in the organisational profit
reached at a peak of $17 million in 2018 whereas the previous profit was worth of $16.7