Ethics and Governance - Sandfire Resources

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ETHICS AND GOVERNANCE – SANDFIRE RESOURCES
Student Name: Student ID:
5/29/2019

EXECUTIVE SUMMARY
Ethics and governance plays a very important role in the functioning of the company. Through
this report the ethics and the corporate governance has been evaluated of the company which is
listed in the Australian Stock Exchange. The report does not contain any form of analysis of
financial data of the company rather it has detailed the governance of the company including the
composition of the board of directors and the manner the remuneration is paid to them.
The main reason is to make the shareholders and the other stakeholders of the company aware
about the functioning of the company. The results have been concluded as positive in response to
the industry norms.
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Contents
EXECUTIVE SUMMARY.................................................................................................................................2
INTRODUCTION...........................................................................................................................................4
DETAILS OF THE COMPANY.........................................................................................................................4
SUMMARY OF CORPORATE GOVERNANCE..................................................................................................6
COMPOSITION OF THE BOARD................................................................................................................6
REPORTS – CHAIRPERSON AND CEO........................................................................................................7
REMUNERATION REPORT........................................................................................................................8
BOARD ORIENTATION..................................................................................................................................8
INTERPRETATION OF COMPANY COMMUNICATIONS USING LEGITIMACY THEORY..................................12
CONCLUSION.............................................................................................................................................14
REFERENCES..............................................................................................................................................14
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INTRODUCTION
The Global financial crisis has been faced during the period from 2008 till 2014 and till date its
effects are visible. The crisis has occurred majorly due to the non availability of the strict norms
and regulations due to which the industries have played with the ethics and the governance team
has acted on their own discretion. The great example was of the Lehman Brothers.
The main purpose of the report is to analyze the ethics and corporate governance of the allotted
company that is listed in the Australian Stock Exchange. The company allotted for the purpose of
the report is – Sandfire Resources. The report has started with the details of the company with
respect to the nature of business and origin. Then the corporate governance of the company has
been discussed in detail with respect to the composition of the board of directors and nexus with
the related reports. The main body of the report is then has been highlighted in detail. It is related
to orientation of the board as related to the stakeholders and the shareholders of the company.
This has been detailed with reference to the different theories including agency theory,
stakeholder theory and etc. Lastly the interpretation has been given as to how the company
communicates with all the stakeholders of the company using the legitimacy theory.
The possible and essential outcomes have been whether the company is following all the ethics
in business and the corporate governance of the company is good. The report has then ended up
with the conclusion as to the likely governance and the ethical climate of the company. The data
for the report has been obtained from primary as well as the secondary resources. The primary
sources include the annual report of the company and the information contained in the official
website and the secondary includes the material of the different authors on the same subject.
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