Corporate Governance and Financial Delegation in JB-Hi-Fi

Running head: DIPLOMA IN ACCOUNTING
Diploma in Accounting
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1DIPLOMA IN ACCOUNTING
Table of Contents
Assessment 1:.............................................................................................................................2
Corporate Governance:..............................................................................................................2
Assessment 2:.............................................................................................................................9
Reviewing the financial delegation and accountabilities inside the company:..........................9
Expenditure or investment approvals:........................................................................................9
Corporate Governance Requirement:...................................................................................10
Loan and Lending Approvals:..............................................................................................11
Sign-off Authorities:............................................................................................................11
Determination of the timeframes:............................................................................................12
Completing inside the agreed timeframes:...........................................................................12
Complying with the deadlines of the legislative requirements:...........................................12
Part 2:.......................................................................................................................................13
Need for New Corporate Governance Procedure to meet the organization requirement:.......13
Detail Internal Control Process for meeting the needs of Corporate Governance:..............14
Discussion of the efficient monitoring of process:..............................................................15
Variations in Corporate Governance:...................................................................................15
Assessment 3:...........................................................................................................................17
Purpose of Corporate Governance Recommendations:...........................................................17
Discussion of corporate governance and compliance with policies and recommendations in
business:...................................................................................................................................18

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Corporate governance examples in JB-Hi-Fi:..........................................................................18
Reference List:.........................................................................................................................20

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Assessment 1:
Corporate Governance:
Corporate governance refers to the process, mechanism and the relationship through
which the businesses directs, manages and implements control on the operational activities.
The principle and the structure of the organization identifies the delegation of responsibilities
and rights between numerous forms of participants in the organizations1. It includes the
procedure and the rules used in decision making in compliance with the corporate affairs.
Corporate governance includes the process through which the organizational objectives is
created and hence pursued in the regulatory aspects of the social and business environment.
The procedure of corporate governance includes the regulation of actions policies, procedure
and decision that are considered by the organizations2. The corporate governance practices
are effected by the attempt to remain in line with the stakeholder’s interest. The interest
observed in the corporate governance practice in the present companies is particularly in
respect of the business responsibilities.
Research suggest that modern firms requires corporate governance framework to
monitor or maintain the effective operational activities as this helps in maintaining the
competitive advantage3. There are companies that look to meet the needs of the related
1 Tricker, RI Bob, and Robert Ian Tricker. Corporate governance: Principles, policies, and
practices. Oxford University Press, USA, 2015.
2 Davies, Adrian. Best practice in corporate governance: Building reputation and sustainable
success. Routledge, 2016.
3 Arjoon, Surendra. "Virtues, Compliance, and Integrity: A Corporate Governance
Perspective." Handbook of Virtue Ethics in Business and Management. Springer Netherlands,

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stakeholders as the increase in need of stakeholder’s satisfactions helps in the development of
the proper and effective functional activities. All the organizations and their respective
management is required to address the roles of governance through which an understanding
of the board, its structure, directors roles and other managerial personnel can be addressed,
The corporate governance includes the understanding of necessary board functions which is
includes the observing, compliance, networking and decision making4. The efficiency of the
board is better understood through corporate governance. Improving the process of board of
directors is better understood through the corporate governance procedure. An assertion can
be bought forward by stating that the policies of corporate governance is necessary for every
organizations and therefore these strategies should be implemented in the organizations to
enhance the operational activities and hence meeting the needs of related stakeholders.
The corporate governance aspects that are selected is applicable to the JB-Hi-Fi
objectives since it is viewed that company is looking to improve the functional activities
through which the company is maintaining the competitive advantage5. Organizations are
required to create the policies through which it can observe and regulate numerous forms of
activities that helps in maintaining the effectiveness. Maintaining such strategies is
2017. 995-1002.
4 Soltani, Bahram, and Christian Maupetit. "Importance of core values of ethics, integrity and
accountability in the European corporate governance codes." Journal of Management &
Governance 19.2 (2015): 259-284.
5 Crane, Andrew, and Dirk Matten. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press, 2016.

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fundamental in developing the organization strategies and JB-Hi-Fi has been extensively
making strategies to improve the extent of corporate governance.
There are eight forms of corporate governance principles and each of the principles is
explained to understand the effectiveness of the corporate governance:
Fairness: This can be defined as the equal treatment of the shareholders and hence
organizations should take the measures of safeguarding the rights of the shareholders6. The
shareholders are provided with the opportunity of gaining effective description of violations
of their rights and authorities.
Accountability: There are numerous codes that assigns the responsibilities to the Board of
directors to act as the guidance for the shareholders to take the decisions and providing
supervision to the management activities7.
Transparency: The organizations are under the obligations of offering accurate and in time
explanation of the information regarding all the facts and information’s related to the
functional activities of financial, environmental and social parameters to provide information
to all the shareholders.
6 Du Plessis, Jean Jacques, Anil Hargovan, and Jason Harris. Principles of contemporary
corporate governance. Cambridge University Press, 2018.
7 ArAs, GülEr. A handbook of corporate governance and social responsibility. CRC Press,
2016.