Social and Environmental Reporting: CSR and Corporate Governance

This report delves into the realm of corporate governance, exploring its theoretical frameworks, including agency, stewardship, stakeholder, resource dependency, and transaction cost theories. It examines the crucial roles of the board of directors and external audits in fostering company sustainability, emphasizing their contributions to achieving sustainable development goals. The report further analyzes the engagement between a company and its stakeholders, using Barclays Bank UK PLC as a case study to illustrate practical applications of corporate governance principles. It highlights Barclays' commitment to transparency, ethical conduct, and stakeholder engagement, showcasing how the company addresses challenges and promotes sustainable practices. The report concludes by emphasizing the importance of corporate governance reforms to ensure integrity and value creation for all stakeholders.

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SOCIAL AND ENVIRONMENTAL REPORTING
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Introduction
Corporate governance is how businesses are conducted according to the desires of the owners.
By focusing on the profitability goal, corporates protect interests, and value of shareholders. On
the other hand, corporate governance pursues the interests of society by acting ethically and
meeting the needs of the stakeholders. There are three parties in corporate governance, including
shareholders, directors and managers (Haslinda & Benedict, 2009, p. 89). All parties in the firm
are entangled in the day to day running of the firm. Corporate governance is supposed to protect
the rights of shareholders and ensure that there is equal treatment of all shareholders (Sir, 2018,
p. 23). The aim of this paper is analyzing the theoretical frameworks of corporate governance,
the role of the board and external audit in enhancing company sustainability, and how corporate
governance creates engagement between a company and its stakeholders.
Critically summarize the theoretical frameworks of corporate governance by highlighting
its different mechanisms and approaches
Several theories have been used to explain corporate governance comprising; agency theory,
stewardship, the stakeholder theory, resource dependency theory and transaction cost theory
(Gérard, 2004, p. 24). These theories are analyzed below:
Agency Theory: Agency theory is termed as the affiliation amid heads such as stockholders and
representatives like the administrators and supervisors of the company. The model postulates that
the bondholders who are business owners are the owners of the firm hire directors and managers
to execute tasks (Haslinda & Benedict, 2009, p. 24). The agents may, however, not make
decisions that cover the interests of the principals.
Stewardship Theory: Under this theory, the company executives protect the owners' interests and
make choices on their behalf. Their primary aim is to generate and preserve an able body for the
stakeholders to flourish. Firms that apply stewardship theory place the CEO and the chairman

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under one executive, with the management comprising mostly of the in house members (Gérard ,
2004, p. 45). This model has a clear objective of the gratification of the shareholder.
Stakeholder Theory: This theory focuses on the effect of corporate activity on the stakeholders of
the corporation. The approach of the stakeholder model is to maximize returns from the business
operations. The network of relationships with many groups can influence the decision making as
the stakeholder’s model is concerned with the nature of relationships amid the stakeholders and
the firm (Sir, 2018, p. 32).
Resource Dependence Theory: The basic proposal of asset dependence premise is the obligation
for environmental links amid the company and external assets (Gérard , 2004, p. 78). The
associations have to require assets that prompt the improvement of trade networks between
associations. A few elements would seem to escalate the character of this reliance, for example,
the importance of the resources, the overall lack of the capitals and the degree to which the
resources are packed in the locale (Haslinda & Benedict, 2009, p. 48).
Transaction Cost in Corporate Governance: Organizations choose two options of obtaining
control over resources; the hierarchy of solutions and market solutions. The decision is based on
the comparison of the transaction cost of the two approaches (Haslinda & Benedict, 2009, p. 54).
Transaction costs are non-production costs which are incurred in the performance of a unique
activity; for instance, the expenditure sustained via subcontracting (Gérard, 2004, p. 76).
Critically analyze how the board of directors and the external audit could contribute to
achieving companies’ sustainable development
Corporate responsibility has risen as a strategic priority for most firms. The Board of directors
together with the external audit plays major roles in the achievement of company’s sustainable
development. The engagement of board of management sends a strong message to the leaders of

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the firm on the sustainability efforts (Haslinda & Benedict , 2009, p. 55). In corporate
governance, external auditors help in the protecting the shareholders’ interests. To achieve a
company’s sustainable development, external auditors do the following roles:
 Inspects financial statements to catch misstatements, errors, and fraud
 Performs audits on company accounts, operations and systems
 Reports audit findings and recommends to the company the necessary improvements
The board is not supposed to align its views on corporate sustainability and how the firm can
expect everybody to be aligned to assist firms that want to realize the gains of getting aligned on
the corporate responsibility, the board of director have several duties including:
Showing Leadership on Sustainability- The board establishes an alignment on the meaning of
sustainability for the firm and is sustainability for a firm entails. This is vital if the board needs to
drive leadership on sustainability. The board should set short and long haul manageability targets
— similarly as they accomplish for monetary goals — and guarantee that the organization’s
maintainability procedure and execution are conveyed at yearly gatherings and speculator
roadshows (Gérard, 2004, p. 58).
Setting up the correct motivators- The correct motivating force structures are fundamental to the
achievement of a feasible technique. The board should fuse supportability needs into both the
enrollment and compensation of administrators. They additionally ought to guarantee that
authority and representative presentation markers are intended to boost conduct that is feasible
and makes an incentive for the organization (Haslinda & Benedict, 2009, p. 46).
Setting up a culture of trustworthiness- The board can help set up a culture of uprightness by
putting accentuation on correspondence about maintainability, and by setting a model by the way
they manage intense exchange offs between transient benefit and long haul esteem creation.

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Supervision of execution and correspondence- Sheets ought to supervise the performance of the
supportable system and guarantee that key targets are being met. They ought to likewise assume
liability and responsibility for the organizations’ correspondence on supportability issues to
partners.
Corporate Governance Report: Barclays Bank UK PLC
A company provides shareholders with a mix of revenue streams that benefit from various
stages. According to Gerald, (2004, p. 34), a firm’s corporate governance report gives annual
disclosure on the overall corporate governance system as well as on the adherence to the set code
of conduct for listed companies. Barclays Plc, a UK based and headquarters bank operates
globally and has always been keen to creating and adding value to all shareholders across all
countries.
Barclays Plc’s corporate governance framework, policies, code of ethics and rules, and Board
doles are all designed to create trust between the company and its shareholders and to create trust
and engagement between Barclays and the wider community. The finance department of
Barclays publishes its annual report into the public where all the investors can freely access and
review it (Sir , 2018, p. 2). The company has been very focused in promoting the highest
standards of corporate government through which all investors and the larger society benefits.
There is auditor independence in the company, as auditors serve for the interests of shareholders
by disclosing facts without any compromise. Also, Barclays has an open and transparent
shareholder communication guideline where the investors have a direct communication with the
company and the board during AGM’s and other important stock exchange and shares review
dates.

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When it comes to the satisfaction of consumers, there is a gap that exists amid C-Sat superstars
and also the rans (Gérard, 2004, p. 34). The firm looks at the traits and separates the best
consumers from the rest. The firm fosters a culture of innovation and continual self-
improvement. The firm is clear on its objectives; therefore, sowing impact rather than the
functions they carry out. Through this, they earn the loyalty of the customers. The firm also
offers products and services designed for UK retail and business customers and provides the
shareholders with a mix of revenues and benefits at different stages of the economic cycle. There
are also flexible borrowing and payment solutions that are set to benefit the shareholders and
other key stakeholders of the bank across all countries in which it operates.
To continue with its development, the firm delivers reliable financial performance and franchise
led deposit growth with low risks and improved quality secured asset growth. There have been
uncertainties brought about by Brexit in the UK. The firm has faced various challenges while
planning for potential outcomes (Gérard, 2004, p. 34). There have been threats to organized
crimes and cyberbullying which have affected the operating model of Barclays in the country.
The firm has been investing wisely to ensure that its technological infrastructure is reliable to
uphold loyalty and trust for the customers.
In addition, Barclays Plc is ensured a spontaneous and Shared Growth Ambition Strategy by
increasingly creating and growing a collection of great performing and high quality products,
strategic partnerships, and services that address all the unmet societal wants and at the same time
creating a unique commercial benefit to the larger community and other social clients (Sir , 2018,
p. 4). Still, Barclays has been in proactive dialogue with all its stakeholders in attempts to shape
the Bank’s corporate responsibility priorities. Again, Barclays has been so committed to sharing

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updates about its performance to the investors and offering opportunities for collaboration and
pursuance of common goals through strategic partnerships.
To ensure sustainable corporate governance for the benefit of shareholders and the society at
large, Barclays Plc has:
Enhanced Board-level accountability: Barclays ensures that the Board capitalizes on reputational
risk exposures and issues, conduct risks, and the effectiveness of shares-split and prices to ensure
fair investor outcomes
Executive and management oversight: Here, Barclays ensures that the Group Risk Committee is
responsible for the review and monitoring of the risk profile of the bank to its key stakeholders
and the community at large (Sir , 2018, p. 6). There is collaboration, consistency, and
collaboration in relation to Barclays and its citizenship strategy.
The firm has been assisting the community and premier customers to go forward via a range of
new products and propositions. The firm has made enhancements in BMB to assist customers in
managing their finances effectively and also view their current accounts from other banks. The
misplaced debit cards are easily frozen through BMB (Gérard, 2004, p. 45). There is also a
calendar view feature that is used to show regular payments. The latter assists in the development
of the entire community.
Conclusion
In conclusion, corporate governance ensures adherence to certain policies or standards as well as
the ethical codes that guide operation of a firm. In this decade of financial crisis, a lot of
resources are required in redefining the corporate governance strategies and terms of regulation
in order to ensure integrity and true reflection of company affairs into the investors and the other
key stakeholders. Corporate governance needs reformations, and the UK is not immune to these

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changes; all companies need to comply with corporate governance rules and policies in order to
promote transparency and add value to all stakeholders of any given company.

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References
Gérard , C., 2004. Corporate Governance Theories: From Micro Theories to National Systems
Theories. FARGO - Centre de recherche en Finance, ARchitecture et Gouvernance des
Organisations , pp. 1-40.
Haslinda , A. & Benedict , V., 2009. Fundamental and Ethics Theories of Corporate Governance.
Middle Eastern Finance and Economic, Volume 4, pp. 89-94.
Sir , C. I., 2018. Barclays Bank UK PLC Annual Report, s.l.: Barclays Bank UK.