Governance Issues at ANZ Bank | Report

Running head: GOVERNANCE ISSUES AT ANZ BANK
GOVERNANCE ISSUES AT ANZ BANK
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GOVERNANCE ISSUES AT ANZ BANK1
Corporate Governance:
The term corporate governance refers to the governing structure of an organization. The
governance system includes the rules, structures, and the corporate practices and policies, which
are developed and directed and controlled by the organizational body. The corporate governance
also refers to the roles and responsibilities of the employees in the organization. The corporate
governance describe upon the essential roles of the stakeholders and the senior manager
executives, as well as the roles and responsibilities of the customers, financiers, suppliers and
community members, and therefore, the corporate governance aspects of the organization
establishes the framework of the organizational objectives (Claessens, and Yurtoglu. 2013).
Thus, the corporate governance includes all the sphere and aspects of the organization, and
ensures the action plans and the internal controls of and the performance measurement of an
organization.
Therefore, the considering the above definition of corporate governance it can be said,
that the governance refers to the communication and control practiced within an organization.
Therefore, the basic principles of the corporate governance of an organization includes the
following,
The legal, social and contractual obligations of the shareholders and the non-shareholders of the
organization must be highlighted and upheld, thus establishing a continuous communication
within the organizational system.
There also must be a code of conduct practiced within the organizational which will be
established and practiced by the corporate governance system of the organization, and this code
of conduct will include the behavioural practices within the organization and the policies and
procedures to be practiced within the same.

GOVERNANCE ISSUES AT ANZ BANK2
The principles of corporate governance also ensures that the that all the stakeholders of
the organizations must be treated fairly and equally, and therefore, it aims at ensuring providing
equal rights to all the stakeholders of the organization.
Therefore, the three pillars of corporate governance, that ensure the practice of the
aspects of corporate governance within the organization, are Transparency, Accountability and
Security. The aspects of transparency refers to allowing the processes and transactions, being
understandable and observable to the stakeholders as well as the suppliers and the customers.
The aspects of transparency refers to the fact that the organization has nothing to hide form its
members and its customers. It is essentially considered in the aspects of the transaction process,
since there had been a number of fraudulency incidents and organizational scams, which had
essentially affected the employee and the customer base of the organizations and the market
position of the same Hermalin. 2014). It is one of the most critical components of the
organization, as it ensures and checks upon the conducts of the organization, and also establishes
the facts that these organizational activities and conducts can be observed or checked upon by
the customers and the stakeholders.
The second aspects is the factor of accountability. The factor of accountability refers to
the answerability or liability of the organizations. A simple understanding is that every
organization is answerable for all the conducts and the activities that it includes, and this can
mean that the organizations can face questions from the legal aspects as well. Therefore, the
factor of liability prevents the organization from indulging into any activities that will question
its liability, responsibility and the transparency of the organization. This helps the organization in
increasing the confidence of the stakeholders and to better its position in the market, and at the