Governance in Globalizing World Assignment

Running Head: GOVERNANCE IN GLOBALIZING WORLD
GOVERNANCE IN GLOBALIZING WORLD
Name of the Student:
Name of University:
Author Note:

1GOVERNANCE IN GLOBALIZING WORLD
Corporate governance is identified as one of the important aspect that can shape the
sustainable business practice for an organisation. There is surely an ethical consideration
associated with the corporate governance. In this regard, focusing on the senior executives and
the Board of Directors have a great influence on the ethical business practice of an organisation.
According to Dimopoulos and Wagner (2016) the Board of Directors is entitled to oversee the
governance and management of a company and monitor the performance of the senior
management. This is the general perception regarding the role and function of Board of Directors
in Corporate Governance. In other words, Levit and Malenko (2016) pointed out that the role of
the Board of Directors is to review and approve the significant corporate actions. Therefore, the
entire control and monitoring practice of an enterprise is vested on its Board of Directors.
In case of Crown Resort, the organisation was alleged to have link with Asian Crime
Gangs. The report of McKenzie, Toscano and Tobin (2019) pointed out that it was after the
casino giant tried to expand its reach to Chinese market in 2013. The scandal started questioning
the function and motive of Crown Resort and sceptical about the organisational structure that had
to have an influence over this unethical business practice. As a repercussion of this event, the
corporate governance framework of the organisation along with its organisational hierarchy had
come into the radar of the corporate governance experts. They found out some anomalies into the
profile of Board member where the organisation had a tradition of appointing its CEO as the
Chairman of the Board (Hatch 2019). Therefore, a pertinent question arises about the power
decentralisation or autonomy of the premier of the organisation. This research is trying to
establish an important argument on behalf of the power decentralisation where the Chairman
should be independent and does not have any position in the executive team.

2GOVERNANCE IN GLOBALIZING WORLD
This event was highly articulated into leading international newspapers like The Age,
Sydney Morning Herald and 60 Minutes (Hatch 2019). There are number of important factors
that made this event as one of the important incident in the history of corporate business practice.
One of the important aspects is about the transparency of the organisational structure and its
importance in current business practice. On the other hand, the decentralisation of power is
identified as one of the important aspect that the argument tried to reinvigorate. Finally, the
ethical business practice in terms of corporate governance is also under the scrutiny of the
argument (García-Sánchez, Rodríguez-Domínguez and Frías-Aceituno 2015). Therefore, it can
be argued that there are three important facets that the argument is trying to make in order to
understand the current business practice by the business organisation.
There is definitely an obvious role of the negative impact of globalisation on current
business practice. According to Singh, D. and Delios (2017) the role of globalisation brings
enormous power in the hand of the private organisations where they can exploit the business
environment by expanding their omnipotent power all around the world. As a result of that the
domestic standards and regulations are not enough to restrict the dominance of private
organisations in current business scenario. In response to this, the ethical standard and
perspectives are also changing shapes and try to magnify the malpractices of private enterprises
from the glance of morality and sustainability measures (Ferrero‐Ferrero, Fernández‐Izquierdo
and Muñoz‐Torres 2015). It becomes a responsibility of the big corporations to consider moral
and ethical business practice so that they can survive in the long run. Increasing awareness
among the customers and clients is also a paramount aspect that the current business morality
and ethical standards are trying to add in its perspective. Henceforth, a collaborative approach