Governance, Ethics and Sustainability

Running Head: GOVERNANCE, ETHICS AND SUSTAINABILITY
GOVERNANCE, ETHICS AND SUSTAINABILITY
Name of the Student:
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1GOVERNANCE, ETHICS AND SUSTAINABILITY
Table of Contents
Introduction......................................................................................................................................2
A. Pressure points due to growth..................................................................................................2
i) Pressure for performance......................................................................................................2
ii) Rate of expansion.................................................................................................................3
iii) Inexperience of the key employees.......................................................................................4
B. Pressure points due to culture...................................................................................................4
i) Rewards for entrepreneurial risk taking...............................................................................4
ii) Executive resistance to bad news.........................................................................................5
iii) Level of internal competition................................................................................................6
C. Pressure points due to information management.....................................................................7
i) Transaction complexity and velocity....................................................................................7
ii) Gaps in diagnostic performance...........................................................................................7
iii) Degree in decentralised decision making.............................................................................8
Conclusion.......................................................................................................................................8
Reference.......................................................................................................................................10
Appendix........................................................................................................................................13

2GOVERNANCE, ETHICS AND SUSTAINABILITY
Introduction
Trading.com is an Australian medium scale share investor company that offers the
customers course fees. The company is highly successful in its business for almost three years
under the leadership of the CEO Jospe Drake. Presently, the company has over 100 staff with
branches over the leading cities in Australia like Sydney, Melbourne, Brisbane and Adelaide.
The increasing sales growth helped the organisation to expand its business drastically with
employing more consultants and employees in the organisational fold. As a result of that many
new people even who have least and fresh experience in that industry were also recruited in order
to facilitate the services as per the demand of the customers. Based on this understanding about
the background of the organisation this report aims to conduct a risk assessment of the
organisation extensively. In this regard, a risk exposure calculator is also utilised in order to
bring an analysis of the existing risks that Trading.com is facing. Moreover, the report will be
discussed in three aspects such as the growth, culture and the information management system.
A. Pressure points due to growth
i) Pressure for performance
As far as the performance in Trading.com is concerned, it can be stated that there is huge
pressure imposed by the senior management on the regional manager as well as the consultants.
The organisational sales strategy of Trading.com is also followed the practice of aggressive
sales that pushed the consultants to increase their sales growth as far as possible. According to
the research of Koehl, Poujol and Tanner (2016, p. 290) it can be stated that the role of the
aggressive sales can be a fatal for a medium scale organisation due to its lack of workforce and

3GOVERNANCE, ETHICS AND SUSTAINABILITY
infrastructure. Risk is always been a crucial factor that the organisations has to be assessed
before exposing the market.
A top down decision making is also existed within the Trading.com that imposes a set of
sales target by the senior manager with having little or no discussion with the consultants and the
regional managers. As a result of that the employees feel pressure to cope with the rapidly
increasing sales target. From the research of Meijerink, Bondarouk and Lepak (2016, p. 235) it
can be derived that the role of the organisation is to judge the ability of its workforce with asking
the employees about it. In other words putting emphasis on the employees’ version of their
ability and the organisation’s expectation a bargaining sales target should be set that can be
achievable. Based on this two points, it can be stated that the Risk Exposure Calculator marked
the threat at 4 marks where aggressive sales strategy and top down sales target can be fatal for
Trading.com.
ii) Rate of expansion
Trading.com witnesses a high rate of expansion due to the high demand in the existing
Australian market. The company is belonged to the share investor and trading sector. Therefore,
continuous expansion is considered to be a strategic advantage for the company to survive in the
high competitive market of Australia. In this regard, there are already four branches of
Trading.com in the central business districts of Sydney, Melbourne, Brisbane and Adelaide.
This strategic expansion of the organisation led to rapid increase in its business practices and the
operations are growing faster. However, there are both the positive and negative impact of such
rate of expansion. As the company is a medium sized organisation therefore the workforce is not
so strong to take huge pressure of demand of the Australian market. As a result of that it creates a
risk to perform effectively in the Australian market due to have enough exposure. Traù (2016, p.