Corporate Governance: Code of Ethics, Practices, and CSR Analysis

This assignment solution delves into key aspects of corporate governance, exploring the benefits of adopting a code of ethics, including enhanced brand image, stakeholder trust, and employee accountability. It evaluates best corporate governance practices, such as the importance of a competent...Read More

Corporate governance

Table of Contents
Table of Contents.............................................................................................................................2
Question 3........................................................................................................................................3
Question 4........................................................................................................................................3
Question 6........................................................................................................................................4
References........................................................................................................................................6

QUESTION 3
Introduction
Code of ethics refers as a set of standards and norms that govern the activities of the company.
The present study is related with the benefits of the adoption of code of ethics.
Body
The main objective of the code of ethics is that it creates work environment supported by
integrity, objectivity, accountability, excellence and the ethical behavior (McWilliams, 2015). It
assists the company for obtaining the good brand image by providing the good services to the
customers. Further trust of stakeholders is also enhanced towards the company due to their
constant compliance of corporate ethics (Saeidi & et.al 2015). Responsibility is another feature
of the code of ethics. If the employees are accountable for their work then they will pay more
attention for their work.
Recommendation
It is recommended that company should follow the code of ethics for compliance with the all
rules and regulations imposed by any law. By this approach employee motivation is also
improvised because the code of ethics ensures that the workers of the company get equal
treatment in an ethical manner.
QUESTION 4
Introduction
Company can improve its strategic planning and risk management strategy by implementing the
good corporate governance (Ni, and Van Wart, 2015). The present study evaluates the best
corporate governance practices of the organization.
Body
Some best corporate governance practice is defined below –

 The board of directors of the company should be highly competent and skilled. The
directors of the company must have the knowledge and expertise related with the nature
of the business. The board must be accountable for their work and give the sufficient time
and attention to address the important matter.
 Company should give the significance to integrity and morals in all decision making.
Directors and managers of the company establish an environment supported by code of
ethics and follow with all the state and other laws that prescribe the norms for business.
 The board should define the fee structure of the directors in such a way by which the
conflict of interest can be avoided and it does not make any impact on the performance of
director. Further the company should set the performance targets for the executives and
continuously evaluate their performance against the set target and link the compensation
with the performance. With this regards, the Qantas airways limited improved its
financial performance by setting the target and the manager of the company regularly
evaluate the performance for meeting up the target.
 The board of directors of the company is responsible for building the framework for
managing risk by considering financial, legal, operational and environmental aspects.
Further they should regularly review the sufficiency of the system and assess the risk.
Recommendation
It is recommended that company by implementing the above procedure should follow the best
corporate governance practice.
QUESTION 6
Introduction
The present study is related with the implementation of the best practices in the area of corporate
social responsibility disclosure and corporate governance practice
Body
The board of directors of the company should provide high quality disclosures in the financial
statements with respect to the operational as well as financial result of the company. By this,

shareholders and other stakeholders can easily understand the existing affairs of the company In
order to strategically implement CSR practices it is necessary to ascertain present value activities
of the organization which have positive impact on socio-ecological environment of the company
and activities which required necessary modification. The specified procedure includes insider as
well as outside prospective that result into attainment of CSR activities in appropriate position
and provide benefit to organization as well as society. For example, Wesfarmers issues its
sustainability report every year by which the shareholders get the information regarding the CSR
activities undertaken by the company.
Recommendation
Apart from the financial information, it is recommended that some non-financial information of
the company is also required to be disclosed. Further the role, responsibility and the structure of
the board must be disclosed, supported by the balance shareholding of the executive and non-
executive directors, so that the shareholders and the stakeholders can ascertain the independence
of the board (Suliman, Al-Khatib, and Thomas, 2016).

REFERENCES
McWilliams, A., 2015. Corporate social responsibility. Wiley encyclopedia of management,
pp.1-4.
Ni, A. and Van Wart, M., 2015. Corporate Social Responsibility: Doing Well and Doing Good.
In Building Business-Government Relations (pp. 175-196). Routledge.
Saeidi, S.P., Sofian, S., Saeidi, P., Saeidi, S.P. and Saaeidi, S.A., 2015. How does corporate
social responsibility contribute to firm financial performance? The mediating role of competitive
advantage, reputation, and customer satisfaction. Journal of business research, 68(2), pp.341-
350.
Suliman, A.M., Al-Khatib, H.T. and Thomas, S.E., 2016. Corporate social
responsibility. Corporate Social Performance: Reflecting on the Past and Investing in the
Future, p.15.