Governance and Risk Management Audit Exercise.

Governance and Risk Management Audit Exercise
Table of contents
Introduction......................................................................................................................................2
Sustainable development.................................................................................................................2
Corporate governance at Rio Tinto..................................................................................................4
Governance Framework and Structure............................................................................................5
contextual overview of the organisation/business unit/issue and information on key
personnel/groups/stakeholders.....................................................................................................5
Risk management and financial reporting.......................................................................................6
Risk management.........................................................................................................................6
CSR at Rio Tinto.............................................................................................................................7
Specific Governance Or CSR Statement.....................................................................................7
The advantages attained by the company in relation to the implementation of CSR......................9
Gap analysis.....................................................................................................................................9
Reasons behind such gaps.............................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Introduction
Rio Tinto is considered to be one of the main leaders in mining, discovering the mineral
resources of the earth. The products and services of the company tend to help in fulfilling the
needs and demands of consumer thereby enhancing the standard of living. The country has an
operation in 40 different countries and tends to be a producer of copper, coal, iron ore, gold,
industrial minerals. The company takes into consideration health and safety as the first priority in
anything that it does (Mining Oil and Gas Jobs, 2019).
Since the last 145 years, the company has been leaders in the production of the materials that are
important for the progress of the human being. It is the minerals and metals that is produced has
a major role to play in different items in innovative technologies that assist in making the life
modern. The work performed by the company tends to possess the scope to impact the people,
environment and the communities as a whole in a positive and negative manner. The company
tends to work in collaboration with the ones affected in order to reduce the negative impacts and
for the purpose of sharing the wealth and the advantages that the business organization tends to
develop within the short and long period of time. The company tends to continuously involve
itself in innovation in order to improve the quality of the work.
Sustainable development
As per the principle of sustainable development, it is argued that an organization needs to be
making proper decisions not only as per the economic factors or financials but has been based
upon long term causes. The manner in which the managers tend to implement the responsibilities
tends to be effected by means of tradition, values, culture, and values (Rupp & Ganapathi,
2017).
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Though the shareholder's value maximization tends to play a major role for the corporations all
over the globe, the increase in the social activism along with the rise in new prospect have led
other aspects of corporate performance to be assessed along with the financial results. When the
firm tends to increase in terms of size as well as impact there do not contribute to the global
economy but they reunite and they tend to balance different lines and tend to administer the
interest of numerous stakeholders. In the recent times, it has been identified that organizations
tend to be more prone to widen the foundation of performance appraisals basically from short
term financial focus and comprises of long term social, environmental along with economic
aspects (Soonawalla, 2005).
In the concept of corporate governance and corporate social responsibility, companies tend to be
stimulated in order to promote principles, transparency, accountability, and fairness in all the
dealings. The companies are supposed to generate profits thereby following the uppermost
standards of governance in all aspects. The decision of the firm needs to be united with the
interest of different players in and outside of the company. It becomes essential for the business
houses to keep their activities accustomed to the ethical, legal and communal aspirations. The
significance of corporate governance prevails in its search at refining the laws, contracts, and
regulations that tend to monitor the operation of the company (Cadbury, 2012). It also further
ensures that the rights of the shareholders are properly safeguarded and the interest of the
manager tends to be reconciled and there is a transparent environment where the parties are
capable of understanding their roles and responsibilities properly thereby leading to corporate
growth and creation of value. It is a well-known fact that corporate governance tends to be linked
with honesty as well as transparency that tends to be expected from the public in case of
corporate dealings as well as disclosure. The confidence of the investor along with market
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efficiency tends to be associated with the disclosure of adequate information regarding corporate
performance. In order to attain value in the capital market, it is important for the disclosed
information to be clear and consistent. There is a need for transparency and disclosure of
information taking place between the manager as well as employees so that employee trust, as
well as commitment, can be easily attained. Such factors tend to ensure that the companies
possess accurate and timely reporting of the activities thereby offering needed underpinnings that
would assist in the implementation of the sound governance methods. The factors that have been
stated above tend to pay attention to internal governance methods (Barnett, 2007). Corporate
governance also needs to take into consideration external governance methods that would
comprise of takeover market as well as legal systems. Corporate governance moves around
universal features and ensures that businesses are accountable to shareholders as well as
stakeholders thereby developing methods in order to monitor the behaviour of the managers and
ensuring the fact that companies operate as per the laws and are answerable for all the
stakeholders.
Corporate governance at Rio Tinto
It can be mentioned that Rio Tinto plc. and Rio Tinto Limited developed a dual listed company’s
structure in the year 1995. Hence, it is because of this reason the two companies tends to be
administered as one particular unit, while two companies are a separate legal entity with different
share listings as well as share registers. The headquarters of Rio Tinto has been in London and
the main office of the company has been in Melbourne. Rio Tinto plc. along with Rio Tinto
Limited has made use of a similar method to corporate governance. They tend to make use of the
principles that have been detailed in the UK Corporate Governance Code, the ASX Corporate
Governance Council’s Corporate Governance Principles and NYSE Corporate Governance
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