Theory about Ethics and Governance 2022

Running Head: ETHICS AND GOVERNANCE
ETHICS AND GOVERNANCE
Name of the Student
Name of the University
Author Note

1ETHICS AND GOVERNANCE
Executive Summary
The recent growing numbers of financial scandals that are associated to the accounting as
well as other frauds have apparently blamed the top managers of company. It has helped the
efficient corporate governance provides clear understanding of the respective board roles as
well as senior management as well as their relationship with the others in the corporate
structure. Further, board orientation is the practice for providing the new elected board
members with the new and precise information regarding their role as well as organization
operations. The theory of legitimacy depends on the assumption that there is existence of
social contract in between company as well as society in which it is operating. Hence, this
report is consists of the discussion regarding corporate governance system of Dulux Group,
its board orientation and interpretation of the communication of the company by using the
theory of legitimacy. The report concludes that Dulux Group follows the core principles of
corporate governance.

2ETHICS AND GOVERNANCE
Table of Contents
Introduction................................................................................................................................3
Background of Dulux Group..................................................................................................3
Discussion..................................................................................................................................4
Corporate Governance of Dulux Group.................................................................................4
Board Orientation...................................................................................................................6
Interpreting Company’s Communication Using Legitimacy theory......................................9
Conclusion................................................................................................................................10
Reference..................................................................................................................................12

3ETHICS AND GOVERNANCE
Introduction
The structure of corporate governance explains the arrogation of the rights as well as
responsibilities to key agents in the organization and rules and the procedures of engagement
in the corporate affairs. The corporate governance is described as the way organizations are
directed as well as controlled to promote transparency, fairness as well as accountability. The
structure of governance helps in defining the rights as well as responsibilities allocation
among the various participants of organization and specifies rules as well as procedures of the
engagement in the affairs of company (Huang & Wang, 2015). The evolution of the corporate
governance has taken place because of the various miss-governance as well as unethical
practices prevailed in the different companies in world. There are examples of various
companies who have collapsed because of miss-governance. Further, board orientation is the
process used by the company for providing insights regarding company as well as its current
issues and conditions. Moreover, the theory of legitimacy plays justifiable factors for
disclosures of environmental information (Jizi et al. 2014). Hence, this report includes the
discussion of corporate governance of Dulux Group, board orientations as well as
interpretation of communication of company using legitimacy theory.
Background of Dulux Group
Dulux Group is the leading marketer as well as manufacturer of the premium branded
products, which protects, enhances as well as maintains the spaces and the planes in which
one lives and work. The company originated in 1918 with its original heritage in the
decorative paint for the homes of Australia as well as New Zealand. It discovers wider ranges
of the paints, ideas as well as services for helping to add splash of the colors to one’s home.
This company approximately employs 4,000 people in the Australia, Papua, United
Kingdom, China, New Guinea, New Zealand and South-East Asia. Throughout long as well
as successful history of company, it has invested continuously in the marketing skills, strong