Focus Logistics: Corporate Governance, Sustainability & Ethical Report

This report examines corporate governance, sustainability, and ethical practices relevant to Focus Logistics, a large private company transitioning to an ASX-listed entity. It identifies and discusses four good corporate governance practices: governance frameworks, effective board reporting, broad and diverse board composition, and defined roles and integrity, along with accountability and coordination between strategies and goals. The report summarizes the significance, benefits, and challenges of producing a sustainability report for Focus Logistics, highlighting key elements to be included in the report. Furthermore, it identifies key risks for Focus Logistics and explains the benefits of minimizing risk, providing actionable advice for the company to mitigate these risks and ensure sustainable development.

Corporate
Governance
Sustainability and
Ethics

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The term corporate governance is known as the structure which contains rules, practises and
different practises which are used to direct and control a company by promoting the managerial
efficiency (Rashid,2018). Corporate governance is a system which indicates how the managers
should direct and manage the operations within the organisation. It also signifies that who
holding the power and accountability of certain functions and activities which are running in the
business. Furthermore, this report will also include the benefits, challenges and sustainability
report for the Focus logistics company. Some good corporate practises will also be explained
which are relevant to the company.
MAIN BODY
Identify and discuss four good corporate governance practices that you consider to be
relevant to this company. Describe how these would be beneficial for a large private
company such as Focus Logistics as it transitions into an ASX listed entity
Corporate governance provides a frame work for promoting different activities and certain
operations within the organisation. It is considered as important because, it establishes a system
which provides different rules and practises that determines that how should a company pursue
its operational activities and what can be done to align the interest of stakeholder good corporate
governance can be beneficial to the focus logistics in many ways. Following are the four good
practises which can be helpful and relevant for the company in certain ways.
• Governance Frameworks
the frameworks of government can often be overlooked but, they are the backbone of how the
company or an organisation is governed by these policies and how it should be enforced so as to
promote the effective boards, encouraging the transparency around roles and responsibilities of

various, embers in the organisation (Barafort, Mesquida and Mas, 2019). A good corporate
governance and framework can provide the base for various activities and efficient approaches
towards how to achieve the targets of the organisation by adapting the policies made by the
government. This framework is basically designed to drive the sustainable business practises so
as to ensure that the company is moving forward in the direction of environmental concern
practises. The focus logistics can opt the governance framework so that it can attain efficiency in
its tasks and operations by which it can promote various functions which can generate success
within the organisation. As the organisation is large and have many levels of management, it
should focus on how to approach the new strategies and policies in such a manner which can
accelerate its growth.
• Effective board reporting
this term is concerned with the proper reporting of board directors and the management
framework established by them, so as to promote the effective decision making. This also
includes the proper flow of information which creates a system having transparency within the
organisation. This includes the various steps to maintain long term growth and focusing the
overall sustainability of the firm. The various challenges are also faced during this practise, such
as it is time consuming, inconsistent styles, it is also quite difficult in ascertaining the purpose
and the outcome which is required from the board. The focus logistics should encourage the
effective board reporting within the organization so as to promote the managerial efficiency.
 Broad and diverse Board composition- It has been observed that by distributing the
board wide way then it will helpful in taking various beneficial decisions for the company
as it involves various types of people and their thoughts or views which will help in
taking innovative decisions for the company. It will help Focus Logistics in developing
skilful strategies and planning for the betterment of the organisation. Decision making
process of the company will be more easy because there are various management leaders
are available for making the strategies and for their implementations (Shive,and Forster,
2020).
 Defined roles and integrity- By dividing the roles clearly to the specific individual it
will help in proper working of the organisation and make it smooth. By providing the
target to proper employees Focus Logistic can improve its management activities which
helps in gaining more profits and customers for the company. If company shows his trust

and faith towards the workers and consumers, then it will help in increasing goodwill and
image of the company. With the proper division of work by the management Focus
Logistic can avoid chaos in its functions and can help in develop the skills of the
individual employees. This helps the organisation to improve its functions and activities
of the company in the long run.
 Accountability- It refers to the situation where a leader is being responsible for the
activities and actions done by him, being accountable means accepting the errors and
mistakes and doing activities for the success of the organisation. Focus Logistics should
work in being accountable in their work for presenting the good values and ethics in front
of every. By showing such behaviour company will inspire other employees in an
efficient way and allow them to being a good leader for the company (Cohen, 2018).
 Coordination between Strategies and Goals- For achieving the desired target an
organisation needs to make its planning and execution in parallel with its aim. Company
must take decision which focus on the goal and motivate the employees and help them to
grow their inner potential in order to develop their level of productive skills for
achievement of organisational goal. Focus Logistic should adopt such strategies in its
operating functions which enables it to reach and get it set target. The decision making
board of Focus Logistic should focus on identification of risk taking ability of the
company and ensuring the ways by which these risks can be avoided.
Summarise the significance, benefits and challenges of producing a sustainability report for
Focus Logistics, especially for a business within the logistics industry. Identify the key
elements that should be included in such a report in this industry
In the modern business environment, there are many disruptions in the external
environment which threaten to affect the operations of a business in negative manner and there
are many changes which the business needs to bring in their operational framework along with
their daily work routine if they hope to achieve profitability in the market along with exploiting
the chances of obtaining long term stability (Kovermann,and Velte, 2019). Reporting is a very

important function of business management in which firms have to write, either physically
digitally or both about various operations which are a part of their daily routine and this is a very
important process due to the compliance which the business has to put up with in Australia as the
system of regulation of businesses in that country is quite rigorous and has to be taken very
seriously by Focus logistics. Focus logistics Also has a knack of slacking when it comes to
developing effective reporting measures and this will come back to bite it when the time comes
as developing proper reporting standards is very important for the company to develop a good
reputation in the eyes of the law and keep the business floated and profitable for a long period of
time. According to the data about Focus Logistics which has been presented in the case study,
the firm has to address the poor communication that it has with its stakeholders which is
threatening to hold the business back in the light of its planned expansion and enlisting as a ASX
company for the purpose of which proper reporting of its financial and environmental aspects of
business is key to ensure that the confidence of the investors is very high and they are
knowledgeable about every key plans and strategic activities that a business in undertaking. This
is where the concept of sustainability reporting comes in as it refers to the way in which the
ecological and environmental aspects of the business operations are shared with the detailed
stakeholders in order to effectively report the company’s commitment and current operational
function towards sustainability (Greuning,and Brajovic-Bratanovic 2022). A sustainability report
is very important in the current scheme of things as the modern business environment has
committed grievous sins towards the natural environment and pollution has become a global
issue which has been plaguing the countries world over and this is why businesses such as Focus
Logistics have to come forward with proper reporting standards to satisfy stakeholder enquiries
and questions about the same. The sustainability report contains extreme significance for a
company like Focus Logistics which are listed herein.
 The firm can gain massive amounts of goodwill through proper reporting of high
sustainability efforts which will help in listing as an ASX company
 The sector of logistics is notorious for being a serial offender in greenhouse gas
emissions and environmental degradation which is why it is important to gain customer
trust using proper environmental impact through sustainability reporting

 The firm has been criticized for their lack of cohesion and transparency in their business
and this is why it is important to strengthen this department through proper sustainability
reporting measure
There are also various benefits which are involved in developing a sustainability report for
the company which are listed herein.
 Chance to gain public exposure and positive media coverage
 Increased sales and profits because customer segments are becoming socially aware
 The reporting can help generate more transparency and coordination between
business departments
At the same time, there are also numerous challenges which this task involves which are
also listed herein.
 Lack of proper reporting standards in the company
 The company not having any internal capabilities for taking this task
 No proper commitment to lessen environmental impact
Summarise the key risks for Focus logistics and explain what benefits there would be in
minimising risk. Provide clear and succinct advice on what actions the company should
take to minimise risk.
There is various risk involved for the Focus logistics as the company is looking for the
expansion. It is identified that every business has a risk involved which need to be considered in
order to be sustainable in the market (Mohan, and Katakojwala, 2021). From the above case
study, it is identified that there is various risk involved which are discussed below:
 The potential investors have expressed their concern over the lack of risk management
which is initiatives at the Focus. It is identified that the business organisation has taken a
lot of debt which states that the company has a financial risk in order to conduct its
business operations.
 It is also identified that the various potential investors of the company are concerned
about the lack of sustainability. It has been identified that the carbon footprint of the

company is enormous. This means that the company is almost using the 2 litres of diesel
per year. It is also analysed that the business organisation employs hundreds of sub-
contractors where the consumption of the fuel is not known by anyone. It is analysed that
the company is not following any sustainability which is the risk factor for the focus.
It is identified that the minimising risk is the most important factor for the business
organisation. In context of the Focus logistics it is suggested that the company need to minimize
and concentrate on the operational risk engagement and they need to draft a business continuity
plan in order to conduct its business operations in the smooth and effective way. this is most
important for the company to focus on the various strategies which can be beneficial for the
sustainable development of the company. It is important that the company start a plan in order to
adopt the practices which are sustainable development and reduce the carbon footprint which has
been developed by the company. The another aspect which need to be considered by the
company is that it should concentrate on the performance of the company where it can hire the
employees and also keep the trustworthy employees within the business enterprise in order to
have growth of the company (Rezaee,2019).
CONCLUSION
From the above report it has been concluded that the company need to focus on the
sustainability in order to conduct its business functions in an effective and efficient way. This is
the most important aspect for the growth of the company. As there are various harmful effects
which can be created by the organisation and this need to be controlled. There is various risk
involved for the Focus Logistics which need to be identified and the various measures need to be
taken in to consideration by the company. The sustainability plays a major role in the growth of
the company and its business operations.

REFERENCES
Books and Journals
Barafort, B., Mesquida, A.L. and Mas, A., 2019. ISO 31000‐based integrated risk management
process assessment model for IT organizations. Journal of Software: Evolution and Process,
31(1), p.e1984.
Cohen, B.J., 2018. Beyond EMU: the problem of sustainability. In The political economy of
European monetary unification (pp. 179-204). Routledge.
Greuning, H.V. and Brajovic-Bratanovic, S., 2022. Analyzing banking risk: a framework for
assessing corporate governance and risk management.
Kovermann, J. and Velte, P., 2019. The impact of corporate governance on corporate tax
avoidance—A literature review. Journal of International Accounting, Auditing and Taxation, 36,
p.100270.
Mohan, S.V. and Katakojwala, R., 2021. The circular chemistry conceptual framework: A way
forward to sustainability in industry 4.0. Current Opinion in Green and Sustainable Chemistry,
28, p.100434.
Rashid, A., 2018. The influence of corporate governance practices on corporate social
responsibility reporting. Social Responsibility Journal.
Rezaee, Z., 2019. Business sustainability, corporate governance, and organizational ethics. John
Wiley & Sons.
Shive, S.A. and Forster, M.M., 2020. Corporate governance and pollution externalities of public
and private firms. The Review of Financial Studies, 33(3), pp.1296-1330.