Strengthening Corporate Governance: A Case Study of Woolworths Group

This report examines the corporate governance and ethics of Woolworths Group, analyzing its annual report and corporate governance statement. It identifies corporate governance practices in relation to the eight principles and recommendations of the ASX Corporate Governance Council statement, evaluating the strengths and weaknesses of the company's governance. The report finds that Woolworths has implemented measures aligned with ASX principles, including director skill assessment and voting structures. However, it also suggests recommendations to strengthen corporate governance, such as improved oversight tools and adjustments to board responsibilities to enhance diversity and address potential resistance to organizational guiding principles. The report concludes by emphasizing the importance of continuous improvement in corporate governance practices for sustainable growth and long-term shareholder value.

Corporate governance
and ethics

Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Examine the annual report and inclusive Corporate Governance statement of an Australian
superannuation fund of Woolworths Group...........................................................................3
Identify the corporate governance practice in relation to the eight principles and
recommendations of the ASX Corporate Governance Council statement.............................3
How effective the strengths and weaknesses is the corporate governance of the company?.4
What recommendations can be given to propose to strengthen the corporate governance?..4
REFERENCES...........................................................................................................................6

INTRODUCTION
The corporate governance report of an organisation helps in putting the principles of
the company maintained and give a guide to follow those principles (Al-Gamrh and et.al.,
(2020)). In the following report, Woolworths Group is taken of which the corporate
governance statement and annual report is analysed. By examining the report, it gives an idea
to the management system of the unethical practices happening in the organisation. Further,
the principle in respect of the organisation will be identifies considering the ASX council
statement. Further, the pros and cons of the statements is elaborated along with the
recommendation that the company would take into account for increasing the strengths of it.
MAIN BODY
Examine the annual report and inclusive Corporate Governance statement of an Australian
superannuation fund of Woolworths Group.
Many changes and modification are one in the company to ascertain the effectiveness
and to create more sustainable environment in the company It is rates as 8 out of 10 in the
skills of directors in relation with the corporate governance. On the whole, the company has
taken all the measure of the corporate governance by considering the principle of ASX
corporate governance council statement. It also adapts the voting structure for the
appointment of the directors which helps the company is maintaining the economic
ownership. Also the board of directors are determined on the basis of the skills and
experience which will help the company in further maintaining and fulfilling the new
business needs (Botes and et.al., (2020)).
Identify the corporate governance practice in relation to the eight principles and
recommendations of the ASX Corporate Governance Council statement.
The principles which are helped in creating the corporate governance practices are
enlisted in the ASX group, which help the nation in achieving greater outcomes by fulfilling
the reasonable expectations of the investors in certain circumstances. The corporate
governance practices that are followed in the ASX council statements leads to fulfil the listed
entities demand and focus on the skills that are company can maintain by fulfilling its
commitment and knowledge towards the practices. Further, the balanced disclosure should be
maintained with the external shareholders by demonstrating the all the required relevant
information for the getting and investing in the company. This information should be

provided in the annual report of the corporation for meeting the corporate governance
practices. Also, every business concern should have a risk management committee which
helps in managing the risk whenever appropriate and needed by the company, so that the risk
could not be enlarged and will be solved timely and no major hazardous situations occur in
the company. The above practices and principles are made for the welfare of the company by
giving it a medium for sustain in the industry for the longer time (Crifo, Escrig-Olmedo &
Mottis, (2019)).
How effective the strengths and weaknesses is the corporate governance of the company?
Woolworths respects its excellence in corporate governance, consistency and fair
management, including quoting, selection and execution privileges. Woolworths Group
Securities Trading Policy is continually advancing and aligned with the company's position.
Viable business management needs to be centred on the CEO and senior executives, focusing
on their own responsibilities and, with the business' investors, the shared goal of building a
long-term reputation. Corporate governance is the design of an organization by aligning all
personal, corporate and societal interests. It also helps to create connections between the
organization's board of directors, investors and partners, and have proper association work to
prevent extortion. The leading group of the head of the institution is designated by the
investor and reviewed by the person in charge through a detailed or comprehensive meeting
to supervise and conduct business (El Gammal and et.al., (2020)). The person in charge of the
leadership team is responsible for accomplishing organizational goals, giving management,
standardizing management, and disclosing performance and problems to investors. All board
activities depend on regulations, guidelines and investors. There are different assumptions
that emphasize the improvement of company management, including agency assumptions,
stakeholder assumptions, management assumptions, etc.
What recommendations can be given to propose to strengthen the corporate governance?
To strengthen the corporate governance of Woolworth’s Group, the following are
some of the points that can be made to improve it:
The new edition of the Committee's Corporate Administrative Strategy Questions
refers to a number of changes in the obligations of the Organization's governing bodies and
key executive departments. Likewise, currently top management will assess whether there is
any resistance at any level to the guiding principles of the organization. The executive head is
expected to answer questions to the board about currency issues and a rebellion related to the

group's characteristic strengths. Woolworths' corporate governance should be strengthened
and additionally upgraded due to adjustments to board responsibilities and improved
oversight tools. These new changes to corporate governance reporting will create issues and
challenges for listed entities. Entities will now be required to make changes to their policies,
values and governance reporting. Organizational structures also need to be revisited. Changes
to Principle of corporate Governance are intended to increase board diversity. That means
companies now need to restructure their boards to align them with corporate governance
rules. Board reorganization will be a huge challenge for the company (Rezaee, (2020)).

REFERENCES
Books and Journals
Al-Gamrh, B. and et.al., (2020). Investment opportunities, corporate governance quality, and
firm performance in the UAE. Journal of Accounting in Emerging Economies.
Botes, V. and et.al., (2020). A structured approach to the governance of ethics using the five
lines of assurance model. International Journal of Economics and Accounting, 9(4),
336-352.
Crifo, P., Escrig-Olmedo, E., & Mottis, N. (2019). Corporate governance as a key driver of
corporate sustainability in France: The role of board members and investor
relations. Journal of Business Ethics, 159(4), 1127-1146.
El Gammal, W. and et.al., (2020). The relationship between CSR and corporate governance
moderated by performance and board of directors’ characteristics. Journal of
Management and Governance, 24(2), 411-430.
Rezaee, Z. (2020). Contemporary Issues in Business: Corporate Sustainability, Corporate
Governance, Organizational Ethics and Forensic Accounting. NOLEGEIN-Journal
of Business Ethics, Ethos & CSR, 6-9.