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Corporate Governance of James Hardie: Stakeholder Groups, ASX Principles, and Corporate Sustainability

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Added on  2019-09-23

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This article discusses the stakeholder groups of James Hardie, including their corporate governance responsibilities. It also explores how the company's actions threatened its corporate sustainability and what could have been done to achieve it. Additionally, it covers the ASX principles and how James Hardie complied with them. The article also touches on the ethical issues surrounding the company's decisions and actions.

Corporate Governance of James Hardie: Stakeholder Groups, ASX Principles, and Corporate Sustainability

   Added on 2019-09-23

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JAMES HARDIECorporate Governance[DATE][COMPANY NAME][Company address]
Corporate Governance of James Hardie: Stakeholder Groups, ASX Principles, and Corporate Sustainability_1
ANSWER 1Stakeholder1 Group of James HardieCorporate governance responsibilities owedSupervisory and joint board of directors.This board consists only non-executive directors. The directors are appointed by the shareholders during the meeting of Annual General. The members of the supervisory board also have a right to vote for the selection of another member of the supervisory board. The corporate governance2responsibilities of this group of stakeholders are as follows- (Peacock, 2016)1. They have to approve the annual budget and the strategic plan which is being made by the managing board of directors.2. They have to approve the annual financial reports and accounts of James Hardie.3. They have to overlook the plans and policies which are being initiated by the managing board of directors.4. They have to approve the decisions which are made in order to issue the shares.5. They are responsible for selecting and removing the CEO and other members of managing a board of directors.Managing board of directorsThis board consists only executive members, and they are appointed by the shareholders at Annual General Meeting. The corporate governance responsibilities of this group of stakeholders are as follows-1. They are responsible for allocating the organization's finances, operations, and general affairs.2. They have a responsibility to develop a strategic plan, annual financial budgets, operational activities and then implementing those strategies in order to reach the James Hardie’s goal.1Stakeholder: a person who is concerned with the business related activities.2Corporate governance: rules and regulations which are to be followed by the company.
Corporate Governance of James Hardie: Stakeholder Groups, ASX Principles, and Corporate Sustainability_2
3. They have the responsibility to implement the strategic plan of James Hardie.4. They have a responsibility to make annual and quarterly reports, management reports, etc.5. They have to handle the risk which is beinginvolved in the activities, and they have to ensure the compliance with legislation.6. They have to give a report of activities to the supervisory board of directors and audit committee of James Hardie.The former managing board of director and joint board of director.The corporate governance responsibilities of this group of stakeholders are as follows-1. The general affairs of James Hardie are being monitored by this group of stakeholders.2. They are responsible for giving and canceling the issue of shares.3. They are responsible to take the decision which is important to change to the identity ofJames Hardie.4. They are responsible for preserving external policies.3Employees Employees are the main stakeholders of the company as they are the only one who are responsible for running the business. They follow the instructions given by their management in order to reach the goals. They report the management about their work and discuss their issues as well. (Clarke, Dean, & Oliver, 1997)CustomersCustomers are also the main stakeholders of the company as they are the clients4 for whomthe company runs in order to satisfy them. The customers tell their demands to the companies in order to satisfy their personal needs and after fulfilling their needs, they are supposed to give the feedback so that the company can improve accordingly.3External policies: strategies made by the state in order to protect the state and achieve national goals.4 Clients: a person who is getting and using the desired services of a company.
Corporate Governance of James Hardie: Stakeholder Groups, ASX Principles, and Corporate Sustainability_3
ANSWER 2ASX PrincipleKey corporate governance issuecorresponding to that ASX PrincipleThe corporate governance council of Australian Stock Exchanges on March 31, 2007, implemented the principles and best practice recommendations on corporate governance. The companies which are listed in Australian Stock Exchange are supposed toreport the authority that they will follow the principles and recommendations or not, and ifthey do not follow then, they have to give a reason. And this rule was implemented from the financial year- January 1, 2007. (Comino, 2016) The key corporate governance issue of JamesHardie in correspondence to that of AustralianStock Exchange principle and recommendation is- (Coutts, 2005)The financial5 year of James Hardie ended on March 31, 2007. And James Hardies was supposed to report according to the principles and best practice recommendations on corporate governance of Australian Stock Exchanges. In that report, James Hardie also commented that to what extent they followed the principles and best practice recommendations of Australian Stock Exchange for the financial year March 31, 2007. And it also showed all steps and procedures which were being followed in order to complete the best practice recommendations and principles with respect to Australian Stock Exchange. James Hardie adhered most of the Australian Stock Exchange principles and recommendations. The corporate governance issues were-1. James Hardie didn’t disclose the existent practices earlier.2. The employees complained that they were having health issues, but it was not clear that the issues were caused by the usage of asbestos or not and the James Hardie didn't pay any attention towards it.3. In 1938, Ministry of health report came which stated that asbestos is the only reason behind the health issues of the employees and the nearby mining companies but still James Hardie didn’t take any action.4. Employees claimed the compensation,5 Financial year: it is a time period which company uses for financial statements.
Corporate Governance of James Hardie: Stakeholder Groups, ASX Principles, and Corporate Sustainability_4

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