Corporate Governance

Abstract

Corporate Governance is becoming an increasingly popular concept in the business world. The effective governance structures help the organization create value and employ the processes of innovation, exploration and development. The system also provides the control systems that correspond with the risks involved. This research paper explains the ways in which the interest of the key stake holders are taking into account when preparing code of conducts for managers and non-executive directors of publicly-listed companies. The examples from the context of Australia are presented along with the recommended measures for maximization the effectiveness of the code of conduct.

Table of Contents

Introduction1

Corporate Governance1

Corporate Governance and Codes of Conduct in an evolving stage1

The Fundamentals of Corporate Governance2

Importance of Corporate Governance and Codes of Conduct in the context of Australia3

Development of Codes of Conduct6

Examples from Australian context7

Code of Conduct developed by Group 1007

Corporate Governance and Codes of Conduct at the Phosphate Australia9

Maximising the effectiveness of the code of conduct10

Conclusion13

End Notes14

Corporate Governance

Introduction

The term corporate governance was hardly known by anyone as the concept was not so popular. At present, the changes in the climate and the business environment put great emphasis on the concept of the corporate governance. It has become a staple requirement of everyday business and the concept is gaining popularity with the passage of time.

Corporate Governance

Corporate Governance can be defined as the framework comprising of the rules, policies and practices that help in exercising and controlling the authority within a corporation. It provides the mechanism that helps the companies and the authorities in control to be held responsible and accountable for activities that are conducted by them. The codes of conduct help in setting and making the strategies that help to achieve the objectives. The assessment of risk and optimization of performance are some other characteristics that mark the concept of corporate governance.

Corporate Governance and Codes of Conduct in an evolving stage

The corporate governance and codes of conduct are evolving with the organization's changing environment and alterations in the codes are tailored so as to meet with these changing circumstances. Neoliberalism is blamed by some people for the structural and attitudinal causes of the Global Financial Crisis .Developments in Australia are having a significant impact on the evolution of the corporate governance practices.

The Fundamentals of Corporate Governance

The boundaries and the edges of the corporate governance have been shifting with the dynamic shifts in environment .In formulating corporate governance, the establishment of the board and the senior executives' role is mandatory. The following are the fundamental requirements when a corporate governance mechanism or codes of conducts for a publicly listed corporation are developed:

An integrative approach by the concerned authorities (one who can influence corporation's strategies) is required that takes into consideration not only the legal but also the ethical and societal concerns of the stakeholders.

The picture of the company's all material matters are needed to be presented.

The corporate governance mechanism must take into recognition the rights of the company's ...