Corporate Governance Organization and Humanistic †Free Samples

Question: Discuss about the Corporate Governance Organization and Humanistic. Answer: Introduction Corporate governance is very crucial for the success of any organization corporate governance. The board of directors dictates corporate governance of a company. This, therefore, requires that the board to constitute of the mechanisms that ensure that the best people are appointed to the boardroom. The topic of corporate governance was first developed in the 1930s but came to be popularized in the 1970s. The aim of corporate governance is to achieve the best practices within an organization that promotes productivity. The practices which are developed by the board are meant to balance the interest of stakeholders and at the same time provide a framework that helps attain the company's objective (Arnold, 1997). The case is not of any difference at OPTUS Australia, the company that strives for sustainability in their customers, employees, and employees. The company has a Corporate Responsibility group that was formed in 2010 and provides strategic leadership, governance, and oversight. This group also helps to drive the agenda by ensuring that the companys agendas are aligned with the business strategy. The paper will provide an oversight of corporate governance at Optus Australia and how it can be used to enhance business practices (Blant, 2013). Corporate governance is a structure through which direction and control of a company are attained. The board of directors of a company normally exercises corporate governance. The shareholders appoint the board of directors as well as the auditors who then form a governance structure that represents the interest of the shareholders (Cadbury, 2011). The role of corporate governance in a company involves: Setting the strategic aims of the company, providing leadership by affecting the strategies, conducting supervisory duties on the company management and reporting to the shareholders in regards to their stewardship. Therefore, corporate governance is about how a company sets its values and its strategies to ensure it is aligned to the desired direction. Corporate governance for the listed companies is a requirement by law. A good corporate governance is one that considers the control of a company regardless f it is a requirement by law or not. This is because corporate governance improves transparency and accountability between the organization and its stakeholders. In summary, the role of corporate governance can be simplified to the role of the board of directors (Cadbury, 2011). These roles include: Governance; where the board establishes the structure as well as the response that help to fulfill board responsibilities, which aim to address the stakeholders interests Strategy; which involve advising the management in developing strategies and plans that are aligned with the goals of the organization as well as the stakeholders. Performance: where the board reviews and approves company strategies, financial plans, and the annual operating plans. The board also conducts an assessment on the performance of the management based on the established budgets and the alignment to the company's goal. Integrity, the board is responsible for setting the ethical standards of a company of which it passes over to the management for policy and procedure implementation. These policies are designed to promote legal compliance and promote honesty. Talent, the board overseas talent programs within an organization especially those related to executive leadership as well as the potential successor to the CEO. Risk governance, the board monitors the risk exposure on strategy, operations, and finance and works together with the management in determining the risk appetite, tolerance, and alignment with strategic goals (Turnbull, 2012). Better management and fewer ethical and or legal problems are one of the benefits of corporate governance. This involves setting values that limit these issues. Corporate governance improves reputation in a way that more stakeholders become willing to work with your organization. The stakeholders might include the media who can promote the business government and suppliers. This process is further promoted through information sharing which is viewed as information sharing. This makes people feel more confident while engaging in business dealings(Dorcas, 2017). Corporate governance ensures fewer fines, penalties, and lawsuits through policies and regulations that take a specific step to file complaints within the local and state rules. Corporate governance decreases conflicts and fraud as it limits the potential bad conduct of employees by putting in place laws that mitigate fraud and conflict of interests. For instance, a Company's governance might forbid loans to officers and family members or hiring of family members (S?tiblar, 2016). Reduction of wastage is also realized within an organization once corporate governance is put in place. This is due to the set guidelines and structures that are meant to guide the execution of activities hence reducing the wastage of resources (Gerald, 2017). Mitigation of risks and mismanagement, as the board of governance, lays down a structure and provide the way forward; it helps in reducing risks as well as mismanagement within the organization. Finally, there are increased economic benefits, which result from increased trust within the community. Even though the benefit is long-term, corporate governance is very crucial for profit making organizations The limitations of corporate governance The establishment of corporate governance within an organization leads to increased operation cost due to increased administrative requirements. This is due to the duties of the board that includes entering into contracts and financial agreements (Slater, 2015). The separation of management and ownership is another limitation of corporate governance that could hurt the organization in the end. The separation poses an agency problem in that the board of directors especially in corporations that trade stocks publicly. The directors are torn in between maximizing the shareholder's wealth and maximizing personal benefits from the company success (Goodijk, 2015). Misrepresentation of information to avoid paying high taxes or affect the value of the company shares through trading assets between the parent and subsidiary to increase or decrease the amount of revenues and assets. This limits the effectiveness of corporate within the organization (Harisson, 2017). The extensive misuse of power that has been delegated to the company has contributed to the development of laws that prevent the misuse. However complying with each and every of this policies or laws is very costly and demanding for many organizations. Insider trading is another problem that has largely been associated with corporate governance. This happens when officials who have access to highly confidential information, sells it to an outsider. This might lead to an impact on the company's shares as well as its value. Insider trading can also occur when a person with access to the companys share information sells the shares to a person unknowingly (Kelvin, 2017). Using corporate governance to enhancing business practice with the Optus Australia organization Corporate governance is a system that governs and leads the corporation towards the realization of its goals. The objective of corporate governance is to increase accountability to avoid massive disasters. The disasters might include bankruptcy and lawsuits. Corporate governs ensures that problems are promptly addressed, and all the stakeholders are involved. All these actions help in enhancing business practices at Optus or any other organization (Mary, 2017). Other ways in which corporate governance can be used to enhance business practices is by recognizing the role of shareholders in maintaining the companys stock price. This will eliminate the normal trend of brushing away shareholders with little impact on stock prices and allowing a way for shareholders with the majority shares to move their interest. This will not only favor the minority shareholders but also increase the popularity of Optus Australia. The consideration of other stakeholders is also another way of ensuring corporate governance has been well incorporated into the business practices. This is attained by creating a good relationship through addressing the non-shareholder stakeholders, which creates harmony with the community as well as the press (Melis, 2015). Corporate governance ought to make a unanimous decision involving business strategies, therefore corporate governance requires that the board of directors at Optus be on the same page. Optus is a successful organization in Australia. However, the success can be further be enhanced through corporate governance, which will help to make sure that apart from attaining higher profits, the organization also ensures the sustainability of the organization. This may include ensuring that the staff is well paid, civil and legal issues are well addressed through establishing a code of conduct regarding ethical decisions (Morroni, 2013). Once the Optus Australia organization has embraced the corporate governance into ifs business practices, it will also ensure transparency within the organization. This means that financial records and earnings reports will be stated clearly and without exaggeration. Having transparency within the organization helps to increase the public confidence and avoid Ponzi schemes (Simon, 2013). Conclusion In conclusion, corporate governance acts as the control station for a plane which is the Optus organization. Without proper directions and controls from the directors, the organization is prone to face a lot challenges along the way. The company not only does it face challenges but slows its growth and even at times, it lead to stagnated growth. Therefore regardless of whether the company is listed or not, the presence of corporate governance is very crucial and should be included in the business practices of the organization. Optus should thus grab the opportunity as well as the benefits of having corporate governance to take their success to the next level. References Arnold, F. (1997). Corporate Governance Update.Corporate Governance,5(1), 46-48. https://dx.doi.org/10.1111/1467-8683.00040 Blant, K. (2013). Corporate Governance Report: Corporate Governance Principles -a Japanese view.Corporate Governance,7(2), 209-214. https://dx.doi.org/10.1111/1467-8683.00149 Cadbury, S. (2011). The Corporate Governance Agenda.Corporate Governance,8(1), 7-15. https://dx.doi.org/10.1111/1467-8683.00175 Dorcas, S. (2017).Why is Corporate Governance Important?.BusinessDictionary.com. Retrieved 10 May 2017, from https://www.businessdictionary.com/article/618/why-is-corporate-governance-important/ Gerald, F. 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