Corporate Governance and Risk Management of Telstra Corporation Limited

This paper explores the risk management and governance of the Telstra Corporation. It covers the social policies, value of the organization, mission statement, vision, key priorities, building value, differentiation, history of the organization, and stakeholders view.

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CORPORATE GOVERNANCE AND RISK MANAGEMENT
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Table of Contents
Introduction...............................................................................................................................................2
1. Telstra Corporation Limited............................................................................................................2
1.1 Social policies.....................................................................................................................................3
2. Value of the organization..................................................................................................................4
2.1 Mission statement.............................................................................................................................4
2.2 Vision.................................................................................................................................................4
3. The process that assists in value commitment.................................................................................5
3.1 Value commitment............................................................................................................................5
3.2 Financial management......................................................................................................................5
3.3 Key priorities......................................................................................................................................6
3.4 Building value....................................................................................................................................6
3.5 Differentiation...................................................................................................................................7
4. History of the organization...............................................................................................................7
5. Stakeholders view............................................................................................................................11
5.1 Customer view.................................................................................................................................11
5.2 Investors view..................................................................................................................................11
5.3 Management view...........................................................................................................................11
5.4 Negative view..................................................................................................................................12
6. Telstra integrity...............................................................................................................................13
6.1 Telstra quality assurance.................................................................................................................13
6.2 The organizational hypocrisy...........................................................................................................15
7. Conclusion........................................................................................................................................16

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Introduction
Governance and risk management are tow important aspects of the company management
that are linked to the degree of the company's commitments to its advertised values. There are
many companies that have excellent social activities based on advertised values. Advertised
values of the company offer the company basis for advertisement and marketing information.
Telstra is an example of a company in the market with an excellent customer focused advertised
value. In addition, the company highly invest in corporate social responsibility that highly values
customer relationship with the company. A key aspect of the company that influences the
organizational strategic direction that ensures the company has high meet customers needs.
These aspects include organizational vision, mission, and goals that consist of the overall
customer focus. Key priorities of the company and shared values enable the company to remain
the focus on its strategic direction. Internal processes and accountability issues ensure that the
company remains focus or commitments to advertised values. The following paper explores the
risk management and governance of the Telstra Corporation.
1. Telstra Corporation Limited
Telstra Corporation Limited is a telecommunication company that builds and deals in
telecommunication products and services such as mobile data bundle, cable TV, internet access
and market voice data. The company has a strategic direction that composes of mission, vision
and core values to enhances its customer's service delivery in the market. The strategic plan is
summarized by understanding customers and their need. The company is all its strategic aspects

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tries to understand the customer's needs and offers service to the customer that will change the
way they live (Roger Montgomery 2017).
1.1 Social policies
The company has social policies that focus on a number of things in the company. Some
of these include the human right, code of conduct, diversity and employment policies. Firstly, the
company’s human right policies touch on the employees right and stakeholders right. The
company respect human right and every business dealing is structured to maintain human right.
Secondly, the code of conduct, especially towards customers, is highly valued within the
company as this increases the accountability to stakeholders. Thirdly, Telstra diversity inclusion
policy is based on the fact that the company needs to provide employment to and contracts all
people respectful of background and ethnicity. Lastly, the company aims to be a good employer
through the provision of a conducive environment for employees to work and realize their career
fulfillment. (Rachel 2017). For more information and the attached evidence please refer to the
following link that contain the Telstra Annual report for 2018 located at
https://www.telstra.com.au/content/dam/tcom/about-us/investors/pdf%20F/2018-Annual-
Report.pdf .

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Figure 1: Telstra CSR
The company has various advertisements that it uses to promote its products and services
to customers in the market. Telstra Corporation promotes itself to customers that are the main
stakeholder as a customer-focused company that does every business in a respectable way
without discrimination and with a high level of accountability. The company is structured in a
way that is customer focus and this forms the core aspects of the advertisements (Proctor 2011).
2. Value of the organization
The value of the organization is vested on the statement or three things Service &
Respect, Integrity & Trust, and Teamwork & Accountability. The company has a value-driven
advertised statement that seeks to provide value to customers based on respect, integrity,
accountability to increase trust among customers of the company. The company has a high level
of corporate responsibility that ensures that the company is socially responsible in the
environment it operates (Lee & Kotler 2013).

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2.1 Mission statement
The mission statement of the company is to provide technological solutions to customers
that will be valued and better than any other company in the market. The company focuses on
serving customers in a unique way that is characterized by simplicity and high value. The
company has value and culture that is highly vested in the customer's service in a simple but high
quality. This the company does through the creation of customers service that has the core values
on it (Mason 2017).
2.2 Vision
The vision of the company is to improve the way people in social lives and does everyday
activities. The company improves the lives of people through the provision of a technological
solution that is more socially responsible than its competitors in the market. In addition, Telstra
has its advertised value that is customer driven and seeks to create a social level of service
delivery (Roger Montgomery 2017).
3. The process that assists in value commitment
3.1 Value commitment
As value commitment, Telstra is committed to customer service, operational management
and financial efficiencies. The main focus of this discussion is based on the customer service and
quality of customer services. Under the customer service management some key pillars has been
set and this include quality customer service, financial management, maintaining the priorities,
building value for customers in various geographical locations and increasing differentiation.
Firstly, Telstra has excellent operations that are committed to excellent customers service (Lee
2011). The company is still committed to the provision of technological solution that ensures that

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customers have a better experience and realize their satisfaction. In addition, the company
through its customer's service department has established customer care process that makes
customers feel part of the organization hence become connected to organizational culture. The
operational processes that are internal assist in management maintain its commitment to the
values of the organization. Telstra particularly has an internal process that aims to maintain the
value of the customer service delivery and commitment to satisfy customer needs (Ashley &
Tuten 2015).
3.2 Financial management
Secondly, financial management is another process that the company is committed to
optimizing for better service delivery. Telstra has some commitments to ensure that financial
management is at its expected level required by the company’s stakeholders. The company tries
to remain within the financial parameters and this is through a strong commitment to the board of
management. Moreover, the company has over the past maintain its prudent investment
decisions that ensure high capital return. Financial management processes maintain the
investment decision especially in the investor's decision (Gitta & South 2011).
3.3 Key priorities
Thirdly, Telstra is committed to its key priorities in order to maintain the strategic
direction and value commitments. Key priorities of the company are to provide a satisfactory
product and services to customers. The company is committed to the growth of customer and
retain number as this forms the primary focus of the company. Simplification of business is
another thing that Telstra does to ensure that customers get the best-desired service.
Simplification key priority of the company serves to improve the company value commitment

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that is customer respect and investing in many different areas. The customer's service delivery is
a key priority of Telstra and has developed many different value statements that aim at
improving customer value within the company (Breakenridge 2012).
3.4 Building value
Building value for customers in various location is another commitment that enables the
company to invest in other areas outside the country. For instance, the company has moved to
invest in Asia as a way to build value to customers in the market. The value of the company to
provide customers with high-quality products or service. The company has used to invest in
various location within more than 20 countries outside Australia. To increase the value for
customers outside the country, Telstra is building its mobile assets base and IP extension to many
other countries. The growth of customers has been the focus of the company that moved Telstra
to invest in other countries. The value of a customer and their number improve the company
overall growth strategies (Hutchinson 2014).
3.5 Differentiation
Lastly, differentiation is another area that shows Telstra commitment to its value. Telstra
product and services differentiation remains a competitive strategy of the company that is also
linked to company value to customers. The company is committed to building intelligent
network capability that can help realize the value of customer according to their expectation. The
company is advocating for the creation of a new product portfolio that will increase customers
commitment to company products. In addition, Telstra has application development strategy that
will increase product differentiation hence the high value of company products in the market.

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Many different products and services that are differentiated to increase product portfolio (Giesler
& Veresiu 2014).
4. History of the organization
Telstra has undergone various transformation in the past ten years to ensure that its focus
is placed on customers and not a business. During the management of David Thodey the period
between 2010 and 2015, the company made numerous changes to keep with its commitment to
values. Firstly, the definition of customer value within the company service delivery and
operations was made in a period of leadership of David Thodey. At this point, the company
increases the focus on customers service and value of customer service as the key culture of the
company (Damon 2010).
Secondly, the company in 2010 started a market share strategy that was to build on the
market share and the position of the company in the market in terms of product category. The
company, therefore, was committed to strong sale volume that became evidence in the 2011
profit announcement. The profit that was announced reflected the customer conversion after the
launch of market share driven strategy (Bhattacharya, Sen & Korschun 2011).
Thirdly, the company in 2011 embarked on customer service delivery improvement that
saw the company investing in social media outreach. During this transformation, the company
invested in social media marketing with the aim of connecting to customers through social
networking. In 2012 the company indicates more than 140000 social media chat that the
company has been doing with customers a translation of 600% per year. This the company
announced in 2013 and shows the commitment of Telstra to meet customer need through
excellent service delivery as shown in the table below (Giesler & Veresiu 2014).

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Figure 2: History of Telstra customer service commitments
Fourthly, in 2011, the company launched digital customer service delivery. Telstra digital
transformation is another key historical feature that shows its commitment to customer service.
An example of digital transformation was based on the development of CrowdSupport that was
geared towards the provision of an offline forum for customers. The company, therefore, realize
huge customer posting on the forum that helps it realize its commitment to customer value
(Bettersby 2011).
In 2014, Telstra started its Digital First platform that gives customer online transactions
to enhance the customer experience. The company showed its commitment to customer service
and changing the way people live though exposing customers to digital transactions. This lead to
many customer transactions and sales. In the overall history of the company has been marked
with progressive transformation of customers service. The company has undergone various
transformation that has seen the company moving to digital customers service that offers online
transactions. This has given the company a competitive advantage in the market among other
similar companies. Additionally, the company has been working on various applications that will
help the company to meet the needs of pf customers in the digital. In total, more than 70% of the

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company transactions were done online leading to the huge transaction being reported in the
company’s history shown in the table below (Lee 2011).
2016 was another year in the history of Telstra that the company launches various stores
through the country to increase its commitment to reach customers and provide quality product

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or service. The company has a total of 360 stores offering a variety of service that was being
restructured to meet the current customer's service delivery requirements. The company invested
in store design as a way to increase customer trust in the company. In the same year, the
company was listed as the most valuable brand owing to its commitment to customer service and
culture of corporate responsibility (Bulgacs 2013).
5. Stakeholders view
5.1 Customer view
Various stakeholders have expressed varied opinion and view on the company's service
and commitment to its value. Firstly, customer service is one key area that customers have taken
time to provide their opinion on the level of service. The company through its NBN has
improved the network connection as expressed by customers. Few customers have expressed
their positive opinion on the company and its services especially the level of the satisfactory of
the service. The positive rating is drawn from the speed on services that the company offer to
customers (Robert 2012).
5.2 Investors view
Secondly, investors express their positive view of Telstra progress and profitability. The
return on invested within Telstra has been good and this has attracted the attention of the
investors or shareholders that express their positive view on service level. Investors sometimes in
2018 express their disappointment on the profitability when the company has a poor rating but
has since regained its profitable level making investors impressed (dela Paz 2016).
5.3 Management view

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Thirdly, the management has also been part of stakeholder has also expressed their view
on the company especially on the delivery of advertised values to customers. The company
employees have a different opinion on the company's delivery of values to customers. The
management expresses the positive view on the shared value of the company as compared to
other staffs that have shown their displeasure on the management if staffs. The company
indicates within its core values as teamwork focus a value that employees show how limited
within the company is. The internal management of employees is the only limiting factors to the
company as compared to its human right policy where the company indicates its focus on
improving the welfare of employees (AFP 2018).
5.4 Negative view
Lastly, unfortunately, customers also express their disappointment on the frequent
disconnections that characterized the customer service process. The review given by customers
shows poor connection especially when reaching out to customers service desk. Negative
comments and review of the customers are based on the slow response of the company towards
customers service and communication. Below is an example of a customer view on customer
service (Farrington, Curran, Gori, O'Gorman & Queenan 2017).

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Figure 3: Customer's view on mobile data
6. Telstra integrity
6.1 Telstra quality assurance
Telstra has various accountability and integrity checks that ensure that consider the
quality of various issues in the company. Firstly, customer service quality is an important issue
that the company has been investing in to ensure that the company has excellent and effective
service. The company has a customer service policy that is vested in the core values of the
company. In addition, the company has a quality department that accesses the quality status and
standards of the products and services. The culture of the company that aims to elevate how
customers are treated and served with high dignity. Various internal processes that are run within
the company aim to increase accountability of the company in the market (Mogoş 2016).

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Figure 4: Various internal processes and risk audit
Secondly, the company has a cybersecurity strategy that keeps the company protected
and other customers that are connected to the network. Cybersecurity is an issue of concern in
the modern telecommunication business and the company has strong telecommunication. Key
factors that are considered under the cybersecurity include customer security, business security,
mobile security, and applications security. Cybersecurity is another issue that the company has
invested in maintaining to ensure that customers are safe. Cybersecurity also touches on the
financial integrity of the company that ensures no money is invested in the company through
cyber-attack (Gerd 2014).
Thirdly, the company has other areas that form the key integrity of the company such as
financial integrity and operational efficiencies. The company has an operational management

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system that ensures that the operation of the company is managed through a system with high-
level efficiencies. This ensures the company operates in a manner that upholds high customers
service efficiencies. In addition, in compliance with the investor requirement the company has a
high financial management system that has a high financial system with integrity, accountability,
and return on investment. The integrity is also enhanced by the organization's internal system
that is software managed with a view to reduce any inefficiencies and instead increase
efficiencies and this is reflected in smooth operations (Mason 2017).
6.2 The organizational hypocrisy
The company has been view has had much organizational hypocrisy due to the dis[arity
between advertised values and the actual customer's service. The customer rating and feedback
have been marked with negative comments especially the online customer review. Various
customers have provided negative comments that reflect the negative rating of the company. In
addition, the quality of service has been viewed as poor and not matching the advertised values.
The company culture is based on high-quality customers service that is currently rated low in the
market. Moreover, recent network outages that were witnessed in the country reflected the poor
quality of service that Telstra offers to customers. Another area of hypocrisy is the commitment
to employees affair that has been viewed as poor as compared to its employee management
policies. Online review and company rating, especially from the employee’s perspective, has
also been poor as compared what is expected of the company with the same capacity as Telstra
(Adhikari 2016).

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7. Conclusion
In conclusion, the company risk management and risk audit form key for identification of
weakness and success of the organization. The organization management especially the internal
processes management serves to improve the organizational efficiencies that are translated to
value commitments. Telstra is an example of a company within the Australian market with
shared values that reflect the organizational commitment to meeting customer service. The value
commitments that form part of the company marketing or advertisement is important for meeting
customer needs. In addition, the company has been running various internal processes that aim at
improving the company improve on accountability. Therefore, the organizational risk and
governance audit offers the opportunity to understand the commitment to its values that are used
to designed marketing advertises. An example of the company shared value is customers
treatment with respect value and integrity.
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