WHISTLEBLOWING

ASX's Corporate Governance Principles and Recommendations

Contents

Introduction3

Discussion4

ASX Corporate governance and code of conduct4

Whistleblow5

Duties and Rights5

Cases involving Whistleblowing6

Going against the policies7

Conclusion9

References11

ASX's Corporate Governance Principles and Recommendations

Introduction

A company's corporate governance is a set of systems, processes and principles upon which a company is govern. It provides a guideline, and a direction to fulfill the company's goals and objectives in order to add value for the company and benefit stakeholders in the long term. Stake holders for the company can be board of directors, management, employees, shareholders, government and society. The principles of corporate governance include conducting business with integrity and honesty, being transparent and accountable to stakeholders and working within an ethical framework. (John et al, 2005, pp. 2-3) Importance of effective corporate governance ensures an attainment of confidence in the industry. It bases a criterion that foreign investors deciding on which company to invest in. Plus it positively influences the share price of the company and its can make it easy to get various sources of capital at reasonable credit terms (Lisa, 2009).

The essay describes the Corporate Governance principles of Australian Securities Exchange (ASX). Furthermore, ASX's Corporate Governance states in code of conduct regarding Whistle Blowing policies in order to protect the company's employees. A discussion over issues related to whistle blowing policies and rights and duties of whistle blower is done to provide a broader perspective of the topic. Lastly a recommendation is to be given for whether to keep Whistle blowing policies for ASX's employees. The recommendation would be on the basis of the theoretical information and cases describe in the background of the essay. This would ensure a solid knowledge ground to support the opinions for concluding the essay.

Discussion

ASX Corporate governance and code of conduct

Australian Security Exchange is a group of diversified range of market services in order to compete globally in the capital and security market. It serves primary and secondary market services such as raising, hedging and allocating of capital flows and discovery of trades and market price. The company functions as a market operator and facilitates clearing house and payment systems. Along with the defined services, AXS promotes corporate governance standards among Australian listed companies and assists in educating retail investors.

ASX Corporate governance includes sets of charters and constitutions, which provide regulation policies to the Board and Board Committees. Policies are also a part of the company's corporate governance to ensure that businesses are conducting in accordance to the ethical framework. Most importantly policies make it certain to carry out business open and accountable to the stakeholders of the company. The code of conduct serves an important function for any company, even for AXS. It promotes responsible and ethical decision making by the directors and employees as well as work in the best interest of the company and its stakeholders. Employees should work with high standards of honesty, integrity and equality in all aspects of their employment in accordance to the code of conduct.

ASX has a Whistle Blowing policy towards its employees, which states ...