CORPORATE GOVERNANCE

The Corporate Governance of SABMiller



The Corporate Governance of SABMiller

Introduction

The main purpose of this paper is to make an analysis of the company's annual report, and make an analysis based on the given annual report. The paper makes analysis on the corporate governance disclosures and its usefulness to the reader of financial statements. The paper also makes analysis on the financial risk disclosure and its usefulness to the reader of financial statements.

Corporate Governance Disclosures and its usefulness to the readers of the financial statement

The corporate governance disclosures describe the different corporate governance rules and ethics and these are the requirements of corporate governance, which a company should inevitably follow. As SABMiller's is a much admired company, therefore, it is very necessary for the company to follow the different ethics and standards of transparency. Implementing corporate governance is a very difficult task. Many companies in the different sectors face unexpected problems in the implementation of corporate governance. When it comes to define the concept of corporate governance, there is no universally accepted definition of the said phenomenon. The definition of corporate governance varies from one country to another. This is primarily because each country is different from the other in terms of their culture, historical development as well legal system (Sarcar, 2000). The definition of corporate governance has determined in terms of the ways in which a firm's finance suppliers make sure they would get a good Return on Investment (ROI).

The company shows in its corporate governance section that the ordinary share of the company ahs reached to 1,659,040,014 shares. SABMiller, in its annual report shows the ways through which the company operates its board meetings and resolve the conflicts. The main sections discussed in the annual statement of SABMiller are board meetings and attendance, operations of the board, matters reserved for the board, conflicts of interest, the roles of executives and non-executives and the information and training details.

This definition is deficient because it lays emphasis on financial supply but does not distinguish the relationship that exists between the firm and the legion of stakeholder of SABMiller, who have varying interests and they have to be taken care of. For this reason, corporate governance has also represented as a collective grouping of individuals, who have unified into a body with authority and power to control things, give directions, and rule and organization (Turnbull, 2000).

In particular it should be noted that corporate governance proves its existence by formalization in terms of both documentation of understanding of the actors of SABMiller (Balabanis, 2008). This creates the need for a communication process for effective and efficient interaction between the layers of SABMiller (board of directors, officers and employees). Similarly, it is essential for SABMiller to develop within the organization a culture, readable and understandable, focused around risk management and internal control.

These elements, which can not be comprehensive, face the increasing complexity of the environment internal and external systems of a company, however, must allow keeping control and control of transactions by the structure, ...