MBA402 Case Study: Corporate Governance & Sustainability Report

This case study analyzes Focus Logistics Pty Ltd as it transitions into an ASX-listed entity, focusing on the importance of corporate governance practices, sustainability reporting, and risk management. It discusses four key corporate governance practices relevant to Focus, emphasizing the benefits of reliable reporting, quality management, accountability, transparency, fairness, responsibility, and employee care. The study explains the significance, benefits, and challenges of producing a sustainability report, highlighting key elements such as stakeholder engagement and transparency. Furthermore, it identifies key risks for Focus Logistics, including strategic, operational, financial, and compliance risks, and outlines mitigation strategies to minimize their impact, ultimately promoting sustainable growth and development. Desklib provides access to this and similar solved assignments to aid students in their studies.

MBA402 Assessment 3 Case
Study

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Discussing four good corporate governance practices relevant to company and its benefits for
large private company such as Focus Logistics as it transitions into an ASX listed entity........1
Explaining significance, benefits and challenges of producing a sustainability report along
with key elements for Focus Logistics in specified industry......................................................3
Explaining the key risks for Focus logistics and benefits there would be in minimizing risk....5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7
APPENDIX .....................................................................................................................................8

INTRODUCTION
Corporate governance is concerned with following the rules and responsibilities
which can help in adhering the industrial norms can become possible. In the current era,
substantiality can be achieved by managing the risk in turn significant growth and
development can become possible. The current study is based on Focus Logistics Pty Ltd
(Focus) which operates as an independent consultant. In this respect the current study will
pay attention on discussing four good corporate governance practices being relevant to
this company that can benefit firm. It will focus o providing the significance, benefits and
challenges of producing a sustainability report for Focus Logistics. Key risks for Focus
logistics and explaining what benefits there would be in minimizing risk along with the
action to mitigate will be involved in the present study.
MAIN BODY
Discussing four good corporate governance practices relevant to company and its benefits
for large private company such as Focus Logistics as it transitions into an ASX
listed entity
In the current era, there is higher requirement of having the significant corporate
practices so that accomplishing the effective ability to operate in the logistic industry can
become possible. In this respect, there are certain course of action which is required to be
taken into the consideration for having sustainable functioning in sector (Jiang and Kim,
2020). For the purpose of meeting requirements of the customer along with ensuring the
growth & development of the firm the organization requires focusing on adopting the few
corporate government practices by Focus transitions so that distinct level of benefits can
be derived which involves encouraging positive behavior, reducing cost of capital,
improving top-level of decision-making, assuring internal control, enabling better
strategic planning, attracting talented directions.
From the evaluation of the case study it can be mentioned that firm has the
perspective of avoiding reporting as it is not considered to not mandatory practice. The
specific organization is having carbon footprint in the enormous manner which is
indicating that firm is not having effective proper level of the corporate governance that
needs effective development of quality management action (Danoshana and Ravivathani,
2019). On the basis of the observation it is identified that firm is avoiding to be trouble

with the tax policies as it will hamper their objective of offering maximized return to
shareholders. It can be mentioned tat the firm is not effectively focusing on having the
reliable action for the business community as higher fuel prices, etc are leading to greater
cost which is hampering the overall performance of the company. It is indicating that
these are the certain issues which is prevailing in the overall management of the
organization which is required to be emphasized via establishing crucial corporate actions
as follows:
The one of the significant course of the action which is required to adopted by the
Focus logistic that comprises having reliable reporting and preparing the documentation
so that good level of trustworthiness among investors can be provided (Bhagat and
Bolton, 2019). This is basically related with compliance with the ethical action of full
disclosure of the information to investors so that proper decision-making can become
possible by them in turn effective ability for reducing concern based scenarios. It is
important for the directors as well due to its presence taking the decision in the
standardized manner become possible. For accomplishing objective of higher profitability
& sustainability the firm should give emphasis on having effective management of
reporting practice can allow coordinating with corporate governance.
In the operational practices of Focus logistic there should be attentive paid on
having the reliable course of action such as possessing effective quality management
which can help in cope up with corporate governance. Carbon footprint has the adverse
impact on the environment which majorly influence communities in negative pattern. It is
important for Focus Logistic to ensure that its carbon footprint is declined via
concentrating on the regulations such as health & safety, standardized process, Kaizen
activities, etc. these all can help in business actions in the most reliable manner so that
effective pattern of quality can be maintained. These all actions helps in gaining the
standard procedure so that better ways of delivering services and improving quality at the
every level of business can be done. In respect to be become the effective logistic firm in
the industry it is important for the company to emphasize on possessing three crucial
course of the action which involves having healthy & safety, standardized processes and
kaizen activities for having effective quality management.

There is requirement to concentrate on having the compliance with the basic
principle of accountability, transparency, fairness and responsibility. It is important for
the specified organization to get the transparent course of action for having significant
accountability via making reliable meeting of tax policies (Aguilera, Marano and Haxhi,
2019). There is need to ensure that effective coordination with framework can be exerted
to meet the fair decision-making. The good coordination with the requirements of the
taxation policy particular firm can get the benefit of trustworthiness processing in turn
good code of conduct via ensuring reliable corporate tax management. It can allow to
ensure that reliable & relevant reporting has been done to adhere significant transparency
principle of corporate governance.
The fourth course of the action which can be effectively taken into the
consideration by this particular enterprise for having benefits such as Focus Logistics as it
transitions into an ASX listed entity involve fulfilling the roles and responsibilities
concerned with possessing significant care for the employees in turn effective ability to
meet organizational goal of having coordination with corporate governance action. On the
basis of this it recommended to the organization to get the effective culture in its
processing so that adherence to standardized practices can become possible. It can enable
the specified organization to uplift its performance in turn good competitiveness
developing become able for firm. These are the crucial suggestions which can help the
firm to get good practices in turn higher profitability via managing the prevailing risk to
possess sustainable working environment formulation for achieving growth &
development.
Explaining significance, benefits and challenges of producing a sustainability report along
with key elements for Focus Logistics in specified industry
Sustainable report is basically related with having the disclosure of
communication of environment, governance and social goals of organization (What is
Sustainability Reporting? 2022). It is helpful in identifying the priorities of Focus
Logistics so that light on key performance indicators can be provided. In the logistic
industry, sustainable report pay attention on having the significant information regarding
the series of measures to be adopted by firm in order to decline environmental impact that
is usually caused by their supply chain practices. The one of the significant benefit that

can be achieved by the firm m through having the reliable sustainable report which
provides assistance in gaining aligned with environmental preservation to get such
effective practices via identifying the suitable practices. It is found to be important for
focus Logistic as it can give effective understanding of prevailing changes in industry so
that adopting in order to improve efficiency for reducing cost reduction via aligning with
agility in delivery system. It can permit to receive the significant exposure to social or
environment threats that can impact the business. It intends to help in taking reliable
action for growth via managing risk.
In the logistic industry, the sustainable report can be formulated by paying
attention on having key elements such as stakeholders engagement, compelling visuals,
bench marking & progress, supporting from the framework, ensuring transparency, etc.
the sustainable report should focus on having the emphasis on key pillars which includes
human, social, economic and environmental so that effective course of action can be
taken.
There are different form of the benefits which can be achieved by having the
sustainable report that comprises understanding the sustainability in logistics measures
which impact the processes which can help in achieving the overall performance
(Alabdullah, Ahmed, and Muneerali, 2019). The crucial advantage that can be derived by
firm includes corporate reputation in improved manner, building consumer confidence,
inclined level of innovation, etc. in the current era, having effective sustainable report by
Focus Logistic which will help in assessing the ability to recognize the prevailing risks so
that taking effective course of action in turn effective ability to make improvements can
be done. It as well gives the opportunity to have improved risk management through
focusing on possessing effectual innovation actions that can lead firm to have proper
position in the sector. In addition to this, the other form of the advantages that is achieved
by formulating the sustainable report which involves revealing company's performance in
economic, environmental & social areas and posing impact on stakeholders so that
improvement opportunities can be received (Ullah and et,.al., 2021). These all can provide
assistance in gaining the good level of the customer loyalty and satisfaction. On the basis
of this, it can be interpreted that Focus Logistic can get these form of the benefits from

having sustainable report that can ultimately contribution in having improved & quality
performance in specified industry.
There are few challenges which are required to be concentrated on the
organization includes that involves inclined cost, difficulty in monitoring supply chain
practices, lack of alignment in responsibilities and sustainable framework across supply
chain (Tseng and et.al., 2021). This is concerned with having the significant
complications into the overall processing as focus is given on course of the action such as
measuring key performance indicator via focusing on crucial elements such as
environment, etc so that positive impact on the overall growth and development of firm
via taking effectual action in logistic industry can become possible.
Explaining the key risks for Focus logistics and benefits there would be in minimizing
risk
There are different form of the risk which are required to be focused by
organization for achieving the significant ability to eliminate the risk in turn achieving the
reliable approach for the growth & development can be received (Zaman and et.al., 2022).
There are few risks which are needed to be focused firm (mentioned in appendix) so that
reliable benefit for attaining growth can be done. With help of this, it can be mentioned
that there are various form of threats which is need to be eliminated on respect to gain the
profitability so that higher profitability can be achieved. This involves the risks such as
strategic, operational, financial, compliance, strategic, etc. these all the adverse level of
the impact on the functioning of the business. Each type of the action has the adverse
level of influence on the overall processing of firm which negatively hamper the
positioning of enterprise. The main reason behind this is that it can be helpful in making
the strategic action for ensuring that reliable development for growth can be derived.
It is important for the firm to pay attention on taking crucial action to mitigate
risk so that declining their impact for receiving competitiveness can become possible
(Tibiletti and et.al., 2021). It has the impact and its likelihood so that assuring that
appropriate course of action can be implemented. For overcoming operational risk,
mitigation action comprises offering clarity of significance regrading compliance with the
total quality management course. Strategic risk can be avoided by executing KPIs for
standardized results. Compliance threat can be resolved by proper offering of clarity &

delegation of roles and responsibilities. Financial risk can be dealt with having variance
analysis so that deviation can be overcome. These all can benefit the firm to have
substantial performance in turn higher profitable position can be derived.
CONCLUSION
From the above report it can be concluded that having significant corporate
governance is important for achieving the sustainable growth and development. The
objective of report is to understand the significance of corporate governance, sustainable
and risk management so that effective functioning can be obtained. The present study has
involved the four corporate government actions such as quality management, adhering tax
policies, reliable reporting, etc. it has given emphasis on significance, benefits and
challenges of sustainable report which aids in improving performance. There are different
risks which distinctly affect firm that involves strategic, operational, etc that can be
mitigated by taking significant action.

REFERENCES
Books and Journals
Aguilera, R.V., Marano, V. and Haxhi, I., 2019. International corporate governance: A
review and opportunities for future research. Journal of International Business
Studies. 50(4). pp.457-498.
Alabdullah, T.T.Y., Ahmed, E.R. and Muneerali, M., 2019. Effect of board size and
duality on corporate social responsibility: what has improved in corporate
governance in Asia?. Journal of Accounting Science. 3(2). pp.121-135.
Bhagat, S. and Bolton, B., 2019. Corporate governance and firm performance: The
sequel. Journal of Corporate Finance. 58. pp.142-168.
Danoshana, S. and Ravivathani, T., 2019. The impact of the corporate governance on firm
performance: A study on financial institutions in Sri Lanka. SAARJ Journal on
Banking & Insurance Research. 8(1). pp.62-67.
Jiang, F. and Kim, K.A., 2020. Corporate governance in China: A survey. Review of
Finance. 24(4). pp.733-772.
Tibiletti, V. and et.al., 2021. Does corporate governance matter in corporate social
responsibility disclosure? Evidence from Italy in the “era of
sustainability”. Corporate Social Responsibility and Environmental Management.
28(2). pp.896-907.
Tseng, M.L. And et.al., 2021. Sustainable industrial and operation engineering trends and
challenges Toward Industry 4.0: A data driven analysis. Journal of Industrial and
Production Engineering. 38(8). pp.581-598.
Ullah, F. and et,.al., 2021. Risk management in sustainable smart cities governance: A
TOE framework. Technological Forecasting and Social Change. 167. p.120743.
Zaman, R. and et.al., 2022. Corporate governance meets corporate social responsibility:
Mapping the interface. Business & Society. 61(3). pp.690-752.
Online
What is Sustainability Reporting? 2022. [Online]. Available through:
<https://ecovadis.com/glossary/sustainability-reporting/>

APPENDIX
Risk management table:
Type of risk Impact Likelihood Mitigating action
Operational risk Improper ability to
offer standardized
outcomes
High Offering clarity of
adherence & its
consequences so that
suitable action
implementing
Strategic risk Ineffective ability to
meet market forces
Moderate Involving KPIs to
ensure standardized
results
Compliance risk Rise in legal
complications
High Proper delegation of
roles and
responsibilities
Reputation risk Inappropriate brand
positioning in market
High Effective marketing
& promotional
action
Financial risk Lower profitability
to maintain
sustainability
Low Execution of
variance analysis.