Ethics and Governance Practices of Gold Road Resources Ltd

Running Head: Report
Executive Summary
Gold Road Resources has set up the corporate code of conduct to be followed by every
member of the organization including the board members, the management and all the
employees of the company. This code of conduct is designed to maintain high standards of
behaviour within the organization to be observed by all members and make the employees
aware of their responsibilities as per the employment contract with the company. This report
is compiled to analyze the ethics and governance practices of Gold Road Resources Ltd. The
organization Gold Road Resources Ltd was established in the year 2004. It can be inferred
from the analysis that although Gold Road has included detailed disclosure about their
policies and initiatives for environmental and social well being of the internal and external
stakeholders of the company the report lacks substance. It is recommended that the
organization should work towards gathering information about the actual consequences of
their operations on the environment and the society and include the same in the report along
with the corrective initiatives.
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Running Head: Report
Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Organizational background........................................................................................................3
Corporate governance practices.................................................................................................4
Corporate governance: stakeholder orientation.........................................................................9
Interpretation of company communication using legitimacy theory.......................................13
Conclusion................................................................................................................................15
References................................................................................................................................16
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Running Head: Report
Introduction
Gold Road Resources Ltd is an organization that primarily deals with the exploration of gold
deposits and is currently focused on developing the Yamarna Belt in Western Australia
stretched across an area of 6,000 square kilometers. This report presents the ethical outlook of
the organization and begins with providing the organizational background. This is followed
by presenting a brief summary of the corporate governance practices and the approach that
the organization has taken in terms of their orientation for reporting about the environmental
and social impact. The interpretation of the communication by the organization for this
purpose is included in the report to highlight the outcomes of the reporting practices and how
the organization can take measures for improving them (Guthrie & Parker, 2009).
Organizational background
The organization Gold Road Resources Ltd was established in the year 2004 as a private
organization with the name Faulkner Resources Pty Ltd. Russel Davis made use of his
experience of working in the Yamarna Greenstone Belt as a geologist to establish Faulkner.
After the acquisition of the Yamarna North and Yamarna South Projects in the year 2005,
Faulkner decided to go public and the organization was renamed Eleckra Mines. Eleckra
Mines became a public company in the year 2006 and also got listed on the Australian
securities exchange. The organization further explored the Golden Highway Resources and in
the year 2010, Eleckra decided to rename itself Gold Road Resources to represent the focus
of the company on gold mining operations. Currently, Gold Road Resources has complete
ownership of the Yamarna Greenstone Belt (Wilmshurst & Frost, 2010).
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