Corporate Governance, Sustainability Reporting and Risk Management in Logistics Industry - MBA402 Assessment 3 Case Study

MBA402 Assessment 3 Case
Study

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Corporate Governance:................................................................................................................3
Sustainability Reporting:.............................................................................................................5
Associated Risks & their Management:......................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Corporate governance practices and policies may vary from industry to industry and the
operations and method of operations are different in each and every industry. Significance and
benefits of sustainability reporting includes enhanced credibility of the organisations towards the
stakeholders and the customers are more attracted towards the companies complying such
reporting. Every business needs to identify and assess the risks pertaining to it and formulate &
implement measures to manage them so as to operate effectively and efficiently.
MAIN BODY
Corporate Governance:
Focus Logistics Pty Ltd is seeking advice on the good corporate governance practices in its
respective industry of logistics (Ali, Liu and Su, 2018). Therefore, some of the good corporate
governance practices relevant for Focus Logistics Pty Ltd can be discussed as follows –
a. Responsibility towards the society and the environment – Working and operating in the
environment, around the environment and within the society exerts a moral responsibility on
the organisations to be responsible towards the environment as well as the society. Any harm
caused to the environment and to the society shall be corrected and compensated by the
organization as a part of its corporate governance (Corporate Governance. 2022). Logistics
companies naturally, are responsible for the emissions from its vehicles of transportation
which causes harm to the surroundings in which it operates along with the people living in its
area of operations.
The given data and information suggests that the investors are deeply concerned about
the enormous carbon footprints due to the operations of Focus Logistics. This can be proven
by the fact that almost 2 million litres of diesel per annum is consumed alone by the B-
Double trucks and on top of that the fuel consumption by its own fleet of trucks along with
the hundreds of sub-contractors is unknown. Such is the adverse effect of the trucks operated
for the working of Focus Logistics.
What is more concerning being that Mrs. White is completely ignorant of such a serious
issue and is stuck on the fact that it has been their age old practice and is simpler? But David
Rose shows serious concern towards the issue and aspire to be the pioneer for others in the
area of corporate governance,