Governance, Ethics and Sustainability

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

2GOVERNANCE, ETHICS AND SUSTAINABILITY
Introduction
Trading.com is a share investor advisor company in Australia that offers common
people share investment courses and advise services. The company is three years old under the
leadership of CEO Jospe Drake. This medium sized organisation is doing a successful business
with its four branches in Sydney, Melbourne, Brisbane and Adelaide. Recently, the company is
facing some serious issues in various aspects such as organisational growth, cultural pressures
and problems in information management. It requires clear insights into the problems and
prioritises the risks on the basis of its intensity. Rapid transformation in the organisational
process led the company to set a number of changes. In this context, this report is going to
analyse the decisions that Trading.com has made. Moreover, the existing organisational culture
is also under the scrutiny of this report. For a better analysis of the risks the report seeks the help
of a Risk Exposure Calculator in order to perceive the fathom of the risks.
A. Pressure points due to growth
Pressure for performance
The increase in sales one year ago pushed the company to expand its business robustly. In
this regard, the business of the Trading.com is associated with selling share investment courses
to the potential and interested customers. The organisation enjoys employee strength over 100.
However, the demand in the market created a deep pressure on the employees as the organisation
does not have adequate workforce to cope with the high demand. According to Michaelis,
Wagner and Schweizer (2015,p. 1040) the workforce strength is considered to be an important
aspect for the business organisations in order to bring more flow and efficacy into the business

3GOVERNANCE, ETHICS AND SUSTAINABILITY
activities. Solaja and Ogunola (2016, p. 53) opined that lack of workforce can disengage the
organisation to proceed towards high profitability. The same problem is faced by Trading.com
as the organisation has limited workforce to perform according to the market demand. There are
over 100 people who are working under Trading.com as consultants. The size of the
organisation is also a contributing factor for its limited workforce. Trading.com is not a giant
concern to have more than 1000 employees working under one banner. The company is belonged
to the medium sized business. Therefore, it is obvious that the lack of infrastructure restricted the
company to employ high number of people. However, the existing employees feel the intensity
of workload. Based on this scenario, the risk calculator scores 4 for the pressure for performance.
Rate of expansion
In recent times, Trading.com has no such intension to expand its physical existence
further. It means the company is not willing to open its new branch. However, it does not mean
Trading.com has no vision of expansion. One year ago the company is facing robust increase in
sales and it boosted the business activity of Trading.com overwhelmingly. From the research of
Duffield and Whitty (2015, p. 320) it can be derived that the rate of expansion is proportional to
the business dynamics of an organisation. In other words, the increase in business can make a
company envisioned to its business expansion. Therefore, for Trading.com also there is a
glowing opportunity to expand its business further. However, Lozano, Nummert and Ceulemans
(2016, p. 172) advocated that there are some key factors responsible to influence the rate of
expansion for a business entity. For example, the infrastructure in terms of human resource plays
a pivotal part in determining the rate of expansion. In this context, Trading.com does not have
enough human resources for its business expansion. Therefore, it is also imperative to continue