Telstra: Corporate Governance, Ethics and CSR Presentation

This presentation provides a comprehensive overview of Telstra's corporate governance, ethical considerations, and corporate social responsibility practices. It begins with a company overview, including its establishment, operations, and financial performance. The presentation then delves into Telstra's board structure, both before and after changes, and examines a significant scandal involving misleading advertisements and customer billing issues, leading to fines. The ethical problems associated with the scandal are analyzed through the lenses of egoism and utilitarianism. The presentation further explores Telstra's stakeholders, including consumers, internal shareholders, and the government, outlining their relationships and power dynamics. It assesses Telstra's compliance with the ASX guidelines, focusing on principles related to organizational structure, board composition, corporate disclosures, and stakeholder rights. Finally, it applies Carroll's pyramid of social responsibility to evaluate Telstra's CSR efforts and concludes with a list of references.

TELSTRA- CORPORATE GOVERNANCE, ETHICS AND CORPORATE
SOCIAL RESPONSIBILITY
NAME O F THE STUDENT:
NAME O F THE UNIVERSIT Y:

CONTENTS
 Telstra: company overview
 Board structure of Telstra
 The scandal
 Stakeholder and their relationship
 Application of ASX by Telstra- Australian Security
exchange
 Caroll’s Philanthropic Model

COMPANY OVERVIEW
► Established: 1st July, 1975
► Headquarters: Melbourne, Australia
► Employees: 32,000
► Operation: telecommunication
► Revenues: A$ 26 billion
► Subsidiaries: 150
► Products and services: fixed telephone line, cellular
network, cellular services, internet, data services,
television services (Telstra.com.au, 2019).

Tesla board structure

BOARD OF DIRECTORS BEFORE CHANGE: TELSTRA

BOARD OF DIRECTORS AFTER CHANGE: TELSTRA

THE SCANDALS
 Tesla was accused with
misleading advertisement.
 They advertised an
unlimited data offer.
 Customers faced high
billings after use.
 They were fines $10
million (ABC News 2019).
 They were also accused of
over paying the executives
of the executives.

LOOKING INTO THE
SCANDALS
 Telstra had offered their
customers with an unlimited
data service.
 They had hidden clause, terms
and limits that the customers
were not informed of.
 The Australian federal court
found Telstra guilty of
misleading the consumers and
making them confused.
 The high salary creates
industry disparity.
 They try to gain more profit to
pay their salary.

Telstra
Egoism
Self interest
Utilitarianism
Outcome based
The ethical problems related to the scandal

EVALUATION OF ETHICAL
CONCEPT
 The scandals that aroused in Telstra had two ethical
consideration.
 the first is egoism where organisms only focus on serving
their own purpose (Klettner, A., Clarke, T. and Boersma,
M., 2014).
 The second is Utilitarianism where people decide the right
and wrong depending on the consequences of the action.
 The problem here lies in the fact that, there is no inherent
right or wrong.

THE SIX PRINCIPLES STATED BY ASX
1. Creating a solid foundation in order to effectively manage and
oversee.
2. Creation of a solid structure of the board of directors for creating
value.
3. Promoting ethical as well as responsible decision-making.
4. Safeguarding integrity along with reporting their financial details.
5. Making timely and honest disclosures of corporate governance
(Corporate Governance Principles and Recommendations with
2010 Amendments. 2010).
6. Respecting the rights of the people that holds share.
7. Recognizing and managing risks.
8. Fair and responsible remuneration.

STAKEHOLDERS
• The main stakeholders of Telstra are the consumers.
• There are also internal shareholders.
• The government is also a share holder.
• The consumer relationship is purely contractual and the company
is the dominant one.
• Internal shareholders have a legal, contractual as well as moral
relationship. Here, the power is mutual (Governance at Telstra 2019
Corporate Governance Statement, 2019).
• The company shares a moral and legal relationship with the
government where the stakeholder plays the dominant role.