Report on Corporate Governance Reporting and Comparison

This report delves into the intricacies of corporate governance, focusing on the application of corporate governance principles and their impact on companies. It begins with an introduction to the core principles of corporate governance, including fairness, accountability, transparency, and responsibility, and emphasizes their importance for attracting investors and ensuring financial development. The report then examines the key issues arising from changes in the Corporate Governance Principles and Recommendations (4th edition), highlighting alterations in principles 3 and 4 and their implications. A significant portion of the report is dedicated to analyzing Medibank's corporate governance reporting in response to these changes, including its strategies, risk management framework, and whistle-blower policy. Furthermore, the report provides a comparative analysis of corporate governance reporting between Medibank and Bupa, identifying similarities and differences in their approaches. The conclusion reiterates the importance of adhering to corporate governance principles and summarizes the key findings related to Medibank's governance practices.

Running head: REPORT 0
Financial Accounting 2
MARCH 26, 2020
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Contents
Introduction......................................................................................................................................2
Company background......................................................................................................................2
Key issues related to corporate governance.....................................................................................3
Corporate governance reporting of company in response of changes in Corporate Governance
Principles and Recommendations....................................................................................................6
Comparison between corporate governance reporting of Medibank and Bupa..............................7
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

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Introduction
The corporate governance principles play important role in the company. The
organisation that implements the good corporate governance principles will usually overtake
other organisations. The core corporate governance principles include fairness, accountability,
transparency, as well as responsibility. By following the corporate governance principles, the
company will be able to draw the attention of the investors. The support of these investors can be
helpful to get financial development. Several changes have initiated in corporate governance
principles. In the following parts, the corporate governance issues due to modifications in
Corporate Governance Principles and Recommendation (4th edition) in comparison of third
edition and corporate governance reporting of Medibank in relation to changes in corporate
governance principles. This report also makes comparison between corporate governance
reporting of Medibank and corporate governance reporting of Appen Limited.
Company background
Medibank works as the private healthcare insurer maintained by Australian government.
The company is listed in Australian Securities Exchange. Head quarter of organisation is situated
in Melbourne, Australia. It has above forty years of experience in providing good health to the
people of Australia. The company serves more than 3.7 million customers. Additionally, the
Medibank renders great range of healthcare facilities in Australia. These healthcare facilities
include mental healthcare sustenance, preventive care, integrated primary healthcare, as well as
after hour healthcare support. Further, the company also provides complementary services, such
as pets insurance, travel insurance, life insurance along with telephonic healthcare lines.

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Key issues related to corporate governance
A latest version of Corporate Governance Principles as well as Recommendation (4th
Edition) of Council was issued on 27th February, 2019. It will come into effect for the first
financial year of listed companies on or after 1st January 2020. The fourth edition preserves the
similar 'supple, non-compulsory "if not, why not" approach' to disclosures as in third edition of
the Corporate Governance Principles and Recommendations. It revised principles along with
recommendations have similar structure: eight core principles, supporting recommendations, and
explanation with direction on applying the recommendation. Following are 2 key changes are
made in redrafting Corporate Governance Principles as well as Recommendations (4th edition) –
1. Changes in principle 3 and recommendations - One of the key changes is the
redrafting of Principle 3 to signify that “the listed corporation should inspire as well as
repeatedly strengthen the culture across a company of performing morally, legally along
with and accountably”. The theme of values along with cultures are obverse and centred.
Following three new recommendations are introduced by this changed principle –
 Recommendation 3.1: The listed company should be communicative. It should
disclose the values.
 Recommendation 3.3 : as per this, the listed entity is required to -
(a) Contain and disclose whistle-blower policy
(b) Make sure that board as well as board committee is well updated of the material
incident reported in this policy (Phillips, et. al, 2017).
 Recommendation 3.4 : the listed organisation is required to –
(a) Contain as well as explain anti-bribery policy along with corruption approach

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(b) make sure that committee of the board is updated about the material violation of
the policy (Michala, Kiffin-Petersen & Ashkanasy, 2017).

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(Corporate governance, 2019a)
2. Changes in principle 4 and recommendation – the listed entity is required to develop
sound risk administration structure and occasionally monitor efficiency of that structure
(Sam, et. al, 2019).
In this relation, it is expected that the board would have satisfied itself that proper framework
exists for important data to be reported. In this way, the administration would be challenged. The
managers will be held accountable in relation to these changes. The manager would face
complexities and issues in being highly responsive in implementing above discussed changes. In
this way, 4th version of the corporate governance principles along with recommendations creates

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significance on a part of board in recognising and handling risks. The changes in fourth edition
also reflects the great expansion of the role of Risk Committee (Minter Ellison, 2019).
(Hodge & Greve, 2019).
Corporate governance reporting of company in response of changes in Corporate Governance
Principles and Recommendations
Because of the amendments made in corporate governance principles and
recommendation, Medibank continues to see the perfect shifting towards the great responsibility
by the board to set corporate governance expectations that align with community’s standard.
There is now an expectation that the board would make the robust self-evaluation on how an
organisation is living up to the culture as well as values. As per the corporate governance
statement of Medibank, the company will ensure that the strategies of company and risk appetite
are evaluated in against of the cultures, values along with purposes. It is stated in corporate
governance statement of company that Board of Medibank is devoted to wide-ranging corporate

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governance approaches to make sure the fulfilment of the obligation and responsibility to
shareholder, stakeholder along with organisation. The Board is committed to improving our
customers’ experience and providing them with greater value. The statement also states that the
company also focus on developing the risk management framework, making risk appetite, and
reviewing risk culture of company.
In addition, as per the principle changes, the Divisional Risk committee along with
Executive Risk Committee is management committee assists chief executive officers with
oversights of risk management functions across the operations for ensuring that material risk is
dealt with the approach described in risk management approach as well as risk appetite made by
BOD. In addition, the whistle blower reporting service that is known as ‘Medibank Alert’, is
available throughout the outer providers, to enable whistle-blowers to report conducts secretly, or
restrict who has knowledge about the individuality (Hodge & Greve, 2017).
Comparison between corporate governance reporting of Medibank and Bupa
The corporate governance statement of Medibank states that the Board of company states
the role as well as accountabilities. It defines the culture and values in proper manner so that the
changes related to corporate governance principles can be followed. It states whistle-blower
policy to ensure the rights as well as interest of the stakeholders as well as employees of the
company. It also describes those fields reserved for the determination of Board. For assisting the
performance of the roles and responsibilities, the Board has also developed five main committees
containing non-executive directors. It defines the role of risk committee for better expansion of
its roles (Leong & Hazelton, 2019).
When it is compared with the corporate governance reporting of Bupa, it is found that the
corporate governance statement of Bupa states that Strong corporate governance is critical to

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success of the company (Clarke, 2017). The board of company plays significant role in making
sure that this is in place through the Group. The company sets the cultural tone to do the correct
things as well as consider the customers first. Additionally, the governance structure also makes
sure that main risk and issue is escalated in a proper way. In this way, the company considers
that how the strategies are put in place. As the company has no shareholder, the company can
take long-run views and manage the Group in a maintainable manner for the customers.
(Corporate governance, 2019b)
Conclusion
As per the above analysis, it can say that it is essentially required to follow corporate
governance principles to establish sound system in the organisation. In relation to corporate
governance principles as well as recommendation (4th edition), the Board looks for ensuring that
Medibank is appropriately administrated to secure and increase interest of the shareholders.

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Medibank also ensures that the directors, administration, and workers are operated in the sound
environment of the corporate governance.

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References
Clarke, A. (2017). Developing a KPI for Measuring Staff Wellbeing: Implications for Australian
Law. Victoria UL & Just. J., 7, 22.
Corporate governance (2019). Bupa. Retrieved from: https://www.bupa.com/corporate/who-we-
are/corporate-governance
Corporate governance (2019). Medibank. Retrieved from:
https://www.medibank.com.au/about/company/governance/
Hodge, G. A., & Greve, C. (2017). On public–private partnership performance: A contemporary
review. Public Works Management & Policy, 22(1), 55-78.
Hodge, G. A., & Greve, C. (2019). The Logic of Public–Private Partnerships. USA: Edward
Elgar Publishing.
Leong, S., & Hazelton, J. (2019). Under what conditions is mandatory disclosure most likely to
cause organisational change?. Accounting, Auditing & Accountability Journal.
Michalak, R., Kiffin-Petersen, S., & Ashkanasy, N. M. (2017). Coping with Interpersonal
Mistreatment. The Handbook of Stress and Health: A Guide to Research and Practice,
365.
Minter Ellison (2019). Revised ASX Corporate Governance Principles and Recommendations
released. Retrieved from: https://www.minterellison.com/articles/revised-asx-corporate-
governance-principles-and-recommendations-released

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Phillips, C., Hall, S., Pearce, C., Travaglia, J., de Lusignan, S., Love, T., & Kijakovic, M. (2017).
Improving quality through clinical governance in primary health care. USA: Springer
Sam, I. A., Hooper, N., Niesche, C., Pash, C., Rowbotham, J., Southward, J., & Jepson, G.
(2019). 2019 Australian governance summit wrap-up. Company Director, 35(3), 16.