JAPARA Healthcare: Corporate Governance Case Study and Analysis Report

This case study analyzes the corporate governance practices of JAPARA Healthcare. It begins with an introduction to corporate governance and its importance, followed by an overview of JAPARA's current governance mechanisms, including audit and risk management, code of conduct, and privacy and political donation policies. The study critically examines the implementation of these mechanisms, highlighting issues such as rigidity in adapting to regulatory changes, loss of key personnel, and potential damage to the firm's reputation. The analysis draws on academic literature and JAPARA's annual reports. The report concludes by suggesting improvement measures, such as enhancing the power of internal individuals, creating awareness about policy changes, and developing the skills base of management members to address the identified challenges. The appendix provides a summary of JAPARA's corporate governance principles.

CASE STUDY

Table of Contents
INTRODUCTION...........................................................................................................................1
Current corporate governance followed by JAPARA Health care.........................................1
Critical analysis of implementing Corporate Mechanism......................................................1
Improvement Measures..........................................................................................................2
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3
APPENDIX 1...................................................................................................................................4

INTRODUCTION
Corporate governance practices play vital role for business as it assists the companies in
establishing its environment according to determined social values of the country. The report
evaluates and critically analyse the corporate governance activities followed by the JAPARA
health care.
Current corporate governance followed by JAPARA Health care
Corporate governance activity of health care ensures that every individual who is related
to business should be linked with the mechanism which are, board members, stakeholders,
governance council, and management (JAPARA Health care: Annual Report 2016). This adopted
by Australian enterprises to manage risk, authorities, responsibilities and appropriate policies and
procedures which promotes growth and development of company in order to satisfy the needs
and wants of consumers. The 3 Corporate governance principles followed by JAPARA are as
follows: Audit and risk management: It assists the management in establishing control over
internal environment of business according to external environment Code of Conduct: The codes of conduct are followed by every employee of the
organisation to ensure ethical and legal environment of workplace.
 Privacy and Political donation policy: This principle assist the health care centre in
maintaining confidentiality of information in order to make stability in organisational
functions.
Critical analysis of implementing Corporate Mechanism
According to Haque and Deegan 2010, implementing corporate governance activity
within the organisation interrupts the confidentiality of information. In contrast, it also leads to
many changes according to all the individual who is involved in governance mechanism.
However, in the contrary, Christensen, Kent and Stewart 2010, has stated that governance system
is formulated by Australian government to make health care responsible and environmentally
sustainable. Moreover, it helps heath care organisation in adopting best approaches to track
performance and opportunities. In addition to this, 3 issues which arise due to non-compliance
with corporate governance policies are as follows:
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 Fluctuation in regulatory frame work of health care centre: Due to rigidity of work
environment the system is not adaptable to changes which is the major issue faced by
JAPARA health care.
 Loss of key personnel: The organisation lacks skilled labourers which develops the
dependency on few skilled employees (ASX Corporate Governance Council 2014)
 Damage to reputation of firm: In appropriate distribution of powers and responsibilities to
employees sometimes leads to confusion and creates damage to the reputation of firm.
Improvement Measures
The mechanism can be improved by adding few more practices which are as follows:
 Enhancing the power of internal individual working for organisation.
 Creating aware about changes in policies and procedures (Pham, Suchard and Zein 2011).
 Develop skills base of all management members.
CONCLUSION
The report concluded the effectiveness of implementing corporate governance practices
in health care centre in which it critically outlined the issues which are arising due to non
compliance with governance principles which are adaption to the changes in policies and
procedures, lacks skilled and capable employees which is affecting the reputation of JAPARA
for long run. Thus, the report suggested improvement measures like recruiting skilled staff,
developing flexible working environment and appropriate distribution of responsibilities.
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REFERENCES
Books and Journals
Christensen, J., Kent, P. and Stewart, J., 2010. Corporate governance and company performance
in Australia. Australian Accounting Review. 20(4). pp.372-386.
Haque, S. and Deegan, C., 2010. Corporate climate change‐related governance practices and
related disclosures: evidence from Australia. Australian Accounting Review. 20(4).
pp.317-333.
Pham, P.K., Suchard, J.A. and Zein, J., 2011. Corporate governance and alternative performance
measures: evidence from Australian firms. Australian Journal of Management. 36(3).
pp.371-386.
Online
JAPARA Health care: Annual Report, 2016. [Online]. Available through:
<http://investor.japarahealthcare.com.au/FormBuilder/_Resource/_module/
dYCDKYylV0umYHC7KDqmOw/file/2016_Annual_Report.pdf>. [Accessed on 11th
October 2017].
ASX Corporate Governance Council 2014. [Online]. Available through:
<http://www.asx.com.au/documents/asx-compliance/cgc-principles-and-
recommendations-3rd-edn.pdf>. [Accessed on 12th October 2017].
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APPENDIX 1
3 Corporate governance principles followed by JAPARA health care Audit and risk management: In this the Audit committee is focuses on monitoring and
reviewing the functions of internal and external auditor. In this the management also
keeps an appropriate record of financial statements and reports as it reduces the chance of
risk and uncertainties. Code of Conduct: The codes of conduct are followed by health care centre to establishing
high level of ethical standards and integrity within work environment. It comprises, legal
regulation and policies and procedures set by the company.
 Privacy and Political donation policy: This helps the organisation in maintaining
information about any employee confidential. Moreover, the donation to political parties
are also promoted to support the effort of labourers.
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