Australia Board Dragged Before Senate Inquiry †Free Samples

Question: Discuss About The Australia Board Dragged Before Senate Inquiry? Answer: Introducation The chosen article CPA Australia board dragged before senate inquiry over ongoing scandal dated august third, 2017 marks that there is a prompt need of improvement of corporate governance in all the Australian companies. The key points of this article are highlighting the issues of the CPA board transparency in order to have proper relation with the board members and shareholders and the other one is that in spite of the pressure on the CPA board it still overcrowding many ways to converse along with the disaffected members. CPA or the certified practising accountants, which is the accounting body of Australia and has over 15000 members in 121 countries. Their motto is mainly the maintaining of integrity within the Australian companies. This particular article highlights the importance of corporate governance in the companies so that they can maintain the levels of governance within organisation and business as well. This article firstly highlights the sacking of CPAs CEO Alex Malley , due to the controversies against him, which includes the bullying in work place, but this article also states that the board is still under pressure even after the CEO was sacked. This article follows the resignation of many other person of the CPA board and demonstrates that the remaining members of the CPA board are going to face a lot of questioning before the senate of the committee. That is why they highlighted the importance of a senate to set the improvement of the corporate governance for all the countries. This article demonstrates that as the board is facing a lot of questions about the corporate governance crisis of the board they have mentioned the need of senate enquiry due to their misfortune as well as corporate governance. This article also initiates the need of the corporation act in the century. Relating the aspects with the theories: Corporate sectors have become independent and powerful institutions in almost every country. These sectors have expanded their sizes to every corners of the world and have influenced many economies (McCahery, Sautner and Starks 2016). Due to this the impact of the shareholders on the organisations decision-making process are largely affected. With globalization, the pressure and ownership of the government on the organisations are decreasing resulting to which acquiring of accountability is been necessary job. This is the sole reason that every organisation requires the need of corporate governance to deal with the aspect of managing organisations. Corporate governance is the rules that controls and develops the organisational structure (Tricker and Tricker 2015). This set of rules help the organisation to stand up against crisis and risk and determine the goal of the organisation. The rules that it sets governs the organisational relationships with its management, shareholders and t he stakeholders. It can also be mentioned as a decision making body of the organisation which is in charge of deciding which decision to implement within the organisation for maintaining the organisational structure (Armstrong et al 2014). The above article specifies the importance of the corporate governance for the organisation and in the present world there is a presence of problem in maintaining the corporate governance in the organisation. In the above article, the issue highlighted specifies the stakeholder theory of corporate governance. This theory is developed by the incorporation of the corporate accountability among the stakeholders. Stakeholder theory of corporate governance defines any group or an individual who has the ability to affect or gets themselves affected by organisations objectives (Pig 2017). In the above article, also it is seen that the sacking of the CEO has lot of affects or impacts in the CPA board. Hence, it is clearly implied that this theory matches the aspects of the article. This theory suggests that the managers or the managing body has many duties and responsibilities to fulfil and similarly it can be depicted from the article that the CPA body has responsibilities towards the organisations and that is why they wants to initiate proper corporate governance system within the organisation. The article also specifies the need of senate and involvement of the other members to enable the prac tise of corporate governance in a proper way. The relevance of this point with the theory is that this theory includes the involvement of the stakeholders to participate and address to the aspects of the organisation. It is known that every organisation aims to have a number of stakeholders for helping in managing the system and that is what is same between the article and the theory. CPA has an initiative of expanding their networks with the members. Stakeholder theory also focuses in determining of the decisions that will have intrinsic value and the involvement of the stakeholders and this theory does not have the interest of dominating others (Pig 2017). Stakeholder theory covers the institutions like: Government Investors Political Groups Supplier Trade Associations Customers Communities Employees Though the above article has relevance to the stakeholder theory it also has relevance to the resource dependency theory of corporate governance which clearly identifies the role of the board in for helping the organisation to access the required resources. This can be said because the article specifies that the CPA board has stated the need of corporate governance as well as implementing the senate. Similarly, the resource dependency theory also highlights the role of the directors in the process of resource providing to the organisation as well as the people linked with it do (Pugliese, Minichilliand Zattoni 2014. The use and implementing of the resources increases the organisational design and provides them the encouragement to increase their performance level (Beekes, Brown and Zhang 2015). The CPA board wants to bring integrity among the organisations and they also wants to initiate the senate as well. Similarly, the definition of the resource dependency theory states that the m anagement or the board wants to bring many resources for the sake of the organisation. Hence, it can be said that the article is relevant to the two theories of corporate governance, which are stakeholder theory and the resource dependency theory. Importance of these issues in business and for publics: The issues that are mentioned in the articles are important for business because lack of corporate governance will not help the business to reach the desired goal. Failure and absence of corporate governance will result in financial crisis and the loss of business integrity as well. Corporate governance in a business will result in instating the customers, implementing of governing body within the organisation along with the implementation of policies for the employees (Claessens and Yurtoglu 2013). Corporate governance provides the help in increasing the accountability within the organisation and according to the article the CPA board knows the role of corporate governance for the business and that is why mentioned the implementation of the corporate governance among the organisation. Corporate governance for a business helps in introducing resources for the organisation, increases the stakeholders value, and maintains their relationship with the stakeholders to manage the transpare ncy of their decisions (Christensen et al 2015). The corporate governance is a way of directing and managing the administration of an organisation. It also initiates the role and involvement of the stakeholders in the business. The issues of not having a corporate governance system within the organisation can damage the system in many ways. Most obviously, absence of corporate governance within the organisation will damage the whole administration system. Absence of corporate governance system in the organisation reduces its integration and the organisation seems to lack in culture as well. Corporate governance provides the organisation hence without it the organisation will not be able to have any strong prejudice for managing the crisis (ArAs 2016). Presence of corporate governance also provides the organisation with the opportunity to involve the stakeholders in the meeting to utilize their key points and understanding. Presence of corporate governance within the organisation res ults to the identification of the stakeholders along with taking into considerations their decisions; it also helps in identifying and addressing the needs of the stakeholders in order to maintain a proper relationship with others (Iliev et al 2015). Presence of corporate governance provides the organisations the recognition of the responsibilities that the governing board has and will have to set a future for the organisation. Practise of ethical behaviour is another important measure that the corporate governance system practises (Larcker and Tayan 2015). Another use of having corporate governance system is that it helps in maintaining the transparency, be it in business or with the shareholders, it effectively follows the transparency so that there is no exaggeration of problem or issues. Corporate governance has a determining importance among the public. Impact of the issues mentioned in the article can be discussed by introducing the meaning of corporate governance according to the public (Bovens, Goodin and Schillemans 2014). According to the public, the corporate governance is the concept that is effective in both fiction and practice. The governing or controlling body involves integrity, transparency and others in the process of business management to satisfy the needs of the customers or the public (Dias, Rodrigues and Craig 2017). Hence keeping the issues of the article in mind it can be said that the CPA board had taken the right initiative of introducing integrity and corporate governance in the business organisation to help both the public and the business. However, corporate governance can be known as an efficient governance form that needs to be implemented in every organisation. Corporate governance of every organisation depends on the capital it has. This is because corporate governance is dependent on many factors like the accountability, involvement of stakeholders and their decisions (Ferrell and Fraedrich 2015). From the above it can be sa id that corporate governance is a very important system that is helpful for both the organisation and the public as without this, the business will not be able acquire their desired goal nor will the public be kept satisfied with needs. Every organisation needs to imply corporate governance in order to avail a proper managing and administrative board, which will help them to provide the customers the loyal services and have a better relationship with the stakeholders and for the public, corporate governance will provide assurance on behalf of the organisation (Strange 2016). Conclusion: From all the above discussion and having knowledge about the issues mentioned in the article, it can be concluded that every organisation has a massive need of corporate governance implementation in order to develop their business. The article mentioned the CPAs role on introducing the practise of corporate governance in the organisation, the board does this to initiate the integrity among the members of the organisation so that they do not face the problem that the CPA boards is facing after the sacking of the CEO. The CPA board is seen to be facing a lot of problems and that is why it has decided to bring integrity among the organisation and involve the stakeholders in an expanded way in the organisation. corporate governance is a process that will provide the organisation with integration and involvement of the stakeholders. It can be recommended that for initiating the system of corporate governance within the organisation, every organisation must have positivity so that the prac tise can be properly implemented. Corporate governance will help the Australian organisation in expanding their business with the help the shareholders. The involvement of the shareholders may help the organisations with better development and decisions that will have positive impact. The governance body will also deal with the risk management so that the organisation can be free to trade overseas. Corporate governance is very important for the small business, as this governing and managing body will provide them the acquisition to better future. In the article, it can be seen that the big businesses are not at all happy with the CPAs decision but it is necessary for every business to have an administrative body, which will be responsible for the decision making process and also help in building organisational culture. 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