Corporate Governance and Ethics

Title: Corporate Governance and Ethics

Table of Contents
Introduction................................................................................................................................2
Rebuttal......................................................................................................................................3
Conclusion..................................................................................................................................8
Reference List............................................................................................................................9
1

Introduction
Student 1: Corporate governance refers to the system of practices, process and rules by
which an organization is controlled and directed. In relation to such context, the unit aims to
provide an understanding of effective legal governance of corporate that is needed to achieve
organizational success.
Student 2: The significance of the ethical practices and its related concept will also be
discussed under corporate governance. Along with the concentrating on the essential
compliance of the legal governance of corporate, related application and arguments will also
be provided in context to ethical governance of the organization or corporation to achieve
potential and display corporate responsibilities ultimately.
2

Rebuttal
Student 1: Corporate Governance consequently offers the system to attain the organizational
objective, form an effective action plan, measure performance through internal control,
corporate disclosure and encompass practically every management sphere. It past few years,
corporate governance has taken an increasingly major role in the Australian business
contexts. Mees & Smith (2019) discussed that in the realization of strong profile organization
collapses, and the backdrop against worldwide crisis has lead companies, shareholders and
government to actively advocate the establishment of the latest governance system. The
governance of the corporate has noted to be developed in Australia under iterative manner.
On the contrary, several parts of the organization are embracing an evaluated form of
corporate governance in the nation particularly that is principle-based or constituted under
legal compliance. Most of organization irrespective of the sector they operate in often
undertakes governance of their corporate activities and business practices through a specific
set of policies and resolution related to legal governance compliance. The board of directors
in a corporate are pivotal in authority and have a large implication for equity evaluation. Beck
& Paton (2018) argued that in respect to potentially operating under legal compliance,
corporate entities need to be based on the premise that managers, directors and staffs conduct
themselves in best attention of shareholders or owners. The shareholder’s interest that often
overlaps with the manager's interest needs adequate attention to ultimately maximize
shareholder’s wealth. Appuhami & Bhuyan (2015) added that the legal governance of
corporate produces high influences on corporate responsibilities. The process indulges
interaction between several participants like organizational management, the board of
directors and shareholders that helps to shape the company's performance and directing way
towards it. In order to achieve good governance of corporate in the respective marketplace,
the relationship between managers and owners in the company need to be healthy with
eliminated conflicts between them. As legal organization governance noted to impact
positively on share prices, it would be important for owners to track an individual’s
performance that is essential to be in accordance with standard performance. In a modified
corporation, the task and function of managers and owners if clearly outlined than
harmonised noted to influence efficient and sound company’s operations. Apart from
enforcing the healthier relationship between potential shareholders and corporate, on the
contrary compliance with legal governance allows the organization to function in a way that
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