Implications of ASX Corporate Governance Principles for Woolworths Group Limited

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Implications of ASX Corporate Governance Principles

Woolworths Group Limited
Executive Summary
The operations, as well as progress of the company depend on the line of action. Further, the pivotal part
is played by the corporate governance regulation and the practice of risk management. If the company
has a strong foundation of corporate government together with an appropriate risk management then the
company can easily combat any adverse situation. Moreover, the operations of the company will remain
undisturbed. In the report, the emphasis is on Woolworths Group Ltd. (Australia) that is listed on the
ASX. The company adheres to the corporate governance principles of ASX. The report is structured in
terms of its principles and the vital approaches that have been followed by the company. The report
initiates with the implication of corporate governance principles on the company followed by the risk
assessment. Further, ASA-570 that deals with the analytical procedure by the auditors is put forward to
the discussion and the ratios of the company are computed for the purpose of evaluation.
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Woolworths Group Limited
Contents
Introduction..................................................................................................................................................................... 3
Implications of ASX Corporate Governance Principles.....................................................................................................3
i. Laying down a solid foundation for management and oversight :............................................................................3
ii. Appropriate structure of the board..........................................................................................................................3
iii. Acting ethically and responsibly:..............................................................................................................................4
iv. Safeguarding of integrity in corporate reporting......................................................................................................4
v. Make timely and balanced disclosure:.....................................................................................................................5
vi. Respecting the rights of security holders:................................................................................................................5
vii. Recognizing and managing risk:............................................................................................................................5
viii. Remunerating fairly and responsibly :..................................................................................................................6
Risk Assessment...............................................................................................................................................................6
Conclusion......................................................................................................................................................................10
References......................................................................................................................................................................11
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Woolworths Group Limited
Introduction
There has been a massive change in the supermarket of Australia in the past five years. The pioneer in the
field remains Wesfarmers and Woolworths (Beaton-Wells, 2015). Woolworths is an Australian based
company is engaged in the retail operations. Its segment comprises of Food and petrol that procurement
of the products of food and petrol and reselling to New Zealand. The company has made great strides in
the year 2017 owing to its strong operations. The net profits were in the positive zone and assets were
utilized to the optimum. The analysis will shed light on the corporate governance practices of the
company followed by the risk management approach (Woolworths limited, 2017). The food market is a
highly profitable venture and Woolworths has ensured that it remains a giant owing to its formidable
policies.
Implications of ASX Corporate Governance Principles
The company Woolworths Group Limited follows the Corporate Governance Principles that can be
clearly seen after a thorough study of the Annual Report and Corporate Governance Statement for the
year 2017. The company has followed the following principles as can be seen from the Corporate
Governance Statement:
i. Laying down a solid foundation for management and oversight:
The company board is accountable to its shareholders and other stakeholders. The board has its own set
of responsibilities that have been disclosed by the company in its corporate governance report. Its
responsibilities include analyzing the strategies made and ensuring their implementation, adopting the
financial statements and reports and monitoring the management processes for checking the integrity of
such reports (Woolworths limited, 2017). Further, the selection of CEO and other top-level executives,
considering and monitoring the social, environmental and ethical impacts of company’s activities,
monitoring the relationship of the company with its stakeholder and key regulators & making sure that
the company is following the corporate governance policies through proper review and monitoring
(Roach, 2010).
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