Evaluating JB Hi-Fi's Corporate Governance and Legal Compliance

This report provides an overview of JB Hi-Fi Limited's operations, focusing on its retail business in Australia and New Zealand. It identifies key Australian laws and regulations impacting the company, including the Fair Work Act 2009, Environment Protection and Biodiversity Conservation Act 1999, Fair Trade Law, and the Privacy Act. The report assesses JB Hi-Fi's corporate governance arrangement, highlighting its commitment to ethical codes, employee relations, workforce diversification, social responsibility through programs like Helping Hands, and environmental sustainability initiatives such as the Carbon Disclosure Project. The analysis demonstrates JB Hi-Fi's efforts to balance business objectives with legal compliance and social responsibility.

Running head: AUDITING AND ASSURANCE
Auditing and Assurance
Name
Institution

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Question 1: Overview of operations of JB Hi-Fi Limited
JB Hi-Fi Limited is a retail company that deals in home electronic products. The
company has its headquarter in Melbourne and operates two segments in Australia and New
Zealand. JB Hi-Fi operates over 200 retail stores in Australia and New Zealand. The
company generates its revenue by selling home-based products such as car sound systems,
CDs, games, DVDs, Whitegoods, small appliances, and musical products among others (JB
Hi-Fi Limited, 2017).
In 2016, JB Hi-Fi acquired The Good Guys, a consumer retail store, to expand its
market share and competitive advantage amid the increasing competition rivalry in the retail
store industry.
Under the leadership of CEO Cameron Trainor, the company generated total revenue
of $ 6,855,400,000 which comprised of sales as well as income from other trades (JB Hi-Fi
Limited, 2017). JB Hi-Fi uses a centralized management style to control over 12200
employees across its stores; policies are formulated at the headquarters and implemented by
the management of its respective stores. However, the company allows the contribution of its
employees when making decision making.
Question 3: Australian laws and regulations that impact the operation of JF Hi-Fi
The Australian government (Federal and state) have introduced several statutes and
Acts that govern the activities of companies like JF Hi-Fi within its jurisdiction. Some of the
laws include the Fair Work Act 2009, Environmental Law, Corporation Act, and Taxation
law.
a) Fair Work Act 2009

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The Fair Work Act 2009 seeks to offer a balanced relation framework between the
employer and the employees. The Act outlines the workplace relations system which defines
the terms of the relationship between the employers and the employees. Accurately, the Act
describes the terms of employment, rights, and responsibilities of the parties involved, and
the compliance requirements (Latimer, 2016).
Workplace relation should promote social inclusion as well as advocate for economic
prosperity without discrimination. Failure to comply with the act has a direct negative impact
on JB Hi-Fi regarding fines, negative corporate image, and conflict with government
agencies. In 2016, JB Hi-Fi committed itself to the compliance with the Fair work
Ombudsman requirements (JB Hi-Fi Limited, 2017).
b) The Environment Protection and Biodiversity Conservation Act 1999
The Australian Environment Law generally hold that environment should be used in a
manner that promotes sustainable social and economic development. Therefore, businesses
should operate in a way that protects the physical, social and economic well-being of the
people and the community. Violation of the Act attracts a fine of not less than AU $ 250,000
for corporation besides sanctions by the government and court cases which would affect the
company's reputation (Latimer, 2016).
In complying with the Environment Law, JB Hi-Fi is engaged in a number of
programs initiatives such as the Carbon Disclosure Project (CDP), The Smarter Choice
Program, and Australian Packaging Covenant (JB Hi-Fi Limited, 2017).
The company adheres to the Carbon Disclosure Project (CDP) which require
companies to monitor and disclose their energy consumption and greenhouse emissions
annually. JB Hi-Fi engages experts to identify implementable solutions that can be applied to
reduce its greenhouse emissions and energy consumptions (JB Hi-Fi Limited, 2017).

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c) Fair Trade Law
The fair trade law was enacted by the Australian government and it governs the
operations of companies within its jurisdiction. The law ensures that businesses compete
fairly without violating the rights of its stakeholders. Before standing businesses, investors
are required to understand several clauses under the law, namely; Australian standards, Codes
of Practice, Consumer law and the Consumer and Competition Act. Moreover, companies
that sell products and service to the consumers must adhere to policies such as product
labelling, refunds and warranties, pricing regulations and selling goods and service
guidelines.
d) The Privacy Act
The Australian Privacy Act provides comprehensive guidelines on how businesses
should handle information obtained from their consumers and associates. Companies are
required to maintain the privacy and confidentiality of customer’s information. Lastly,
businesses are required to destroy the unwanted information that was collected from the
customers (Bottomley, Hall, Spender, & Nosworthy, 2017).
Question 6: Assessment of JB Hi-Fi’s corporate governance arrangement
JB Hi-Fi has a comprehensive corporate governance plan which guides its day to day
operations as well as its relationship with respective stakeholders. The plan is based on three
pillars of governance, social and environmental factors;
a) Governance factor
JB Hi-Fi Limited is committed to ensuring that its operations are based on ethical
codes and high moral standards. The Company has guaranteed that its practices and policies
adhere to the ASX Recommendations.

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JB Hi-Fi gives a relationship with its employees a high priority. For example, the
company entered into a workplace compliance agreement with the trade union representatives
(ADELOPO, 2010). The initiative has contributed to the development of better
communication and a strong relationship with the employees (JB Hi-Fi Limited, 2017). The
company, also encourage its employees to take part in an annual survey which seeks to obtain
their opinion on the workplace environment. Lastly, JB Hi-Fi trains its employees to increase
customer satisfaction with the services provided to them (JB Hi-Fi Limited, 2017).
JB Hi-Fi has increased the number of female employees in its workplace to achieve
workforce diversification. In 2016, the company implemented an assessment report that
sought to monitor the progress of a gender diversified workplace (Crowther & Seifi , 2015).
The progress of the implementation can be seen in the 2017 JB Hi-Fi's annual report.
Although the gender inequality still exists in the workplace, the number of female
employees has increased on an annual basis. More women are getting senior positions in the
company which is useful for developing an efficient workforce and reducing work turnover
rate (JB Hi-Fi Limited, 2017).
b) Social factor
When it comes to social factors, the company has ensured that its operations are
within the acceptable social norms. As a socially responsible company, JB Hi-Fi Company
has initiated several activities aimed at promoting the welfare of the society. Some of the
giving back to the social programs include Helping Hands in Australia and New Zealand
(Bottomley, Hall, Spender, & Nosworthy, 2017).
c) Environmental factor

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JB Hi-Fi advocates on environmental sustainability in its operations. Employees have
the responsibility of protecting and maintaining the environment. The company has educated
its employees on the importance of considering the environmental impact of their activities.
JB Hi-Fi has improvised effective ways disposing of wastes and utilization of natural
resources.

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References
Adelopo, I. (2010). The Impact of Corporate Governance on Auditor Independence. A Study
of Audit Committees in Uk Listed Companies.
Bottomley, S., Hall, K., Spender, P., & Nosworthy, B. (2017). Contemporary Australian
Corporate Law. Sydney: Cambridge University Press.
Crowther, D., & Seifi , S. (2015). Corporate Governance and International Business (1 ed.).
London,UK: Bookboon.com.
JB Hi-Fi Limited. (2017). 2016 Annual Report. Melbourne: JB Hi-Fi Limited.
Latimer, P. (2016). Australian Business Law 2016. Chicago: Oxford University Press.