Corporate governance assignment analysing Focus Pty Ltd operational performance
Task: How to analyse Focus Pty Ltd operational performance using Corporate governance assignment research methodologies?
Corporate governance assignmentarethe most manifesting practice for managing business development and sustainability in long-term prospects. Corporate governance regulates principles and process decision-making in which board or directors and stakeholder bodies are included. TheCorporate governance assignmentreport has the purpose of assessing the importance of corporate governance. Moreover, the report will consider ASX transitions, challenges of sustainability report and risks of the logistic company showcased in the case study.
1. Identify and discuss four good corporate governance practices that you consider to be relevant to this company
Governance practice of Focus Pty Ltd has not yet commenced rather as per the investors' crisis, the organisation must have business insights as such esteemed senior executives hiring, transparency between company and stakeholders. Most importantly, as per the opinion of Almashhadani and Almashhadani (2022), business compliance with ethics and laws should be addressed along with corporate strategy and risk management are the practices of effective corporate governance. Henceforth, the present organisation Focus can also effectively deal with the participation of business entities for making their business landscape lucrative. As per the investors' concern for further financial investment, the company neither operates with different management departments that are required to oversee business nor board committees for performance review. In regards, the company should adhere to the practices of corporate governance as such Accountability, Fairness, Transparencyand Responsibilities(Diligent, 2022). Most importantly, Focus Logisticsis expected to address its investor's concerns with such governance practices. In fact, the investors have remarked the organisation as one of the family-run businesses in which non-value, sustainability report is much required for even manipulating national banks.In this case, the company for addressing the investor's concerns, the company may overshadow the following practices. Accountability – Accountability is suggested for building confidence and strong relations between the stakeholders and shareholders for crafting solid controlling systems and managing organisations accordingly (Almashhadani and Almashhadani, 2022). Moreover, Focus can better evaluate the performance of the company for defining company positioning and assessing risks.
Fairness – With an effective corporate governance policy the company, Focus Logistics can treat their shareholders and departmental employees accurately to ensure company performance and risk management.
Transparency–Transparency in organisational governance policy is almost equivalent to accountability for endangering confidence. The company in accordance to increase accountability, reliable information can be possibly found for developing company performance(Diligent, 2022). In fact, with transparent reports and information of the company, the logistic organisation generatesCorporate governance assignment sustainability reports, which is the major concern of their company.
Responsibilities– In the above-mentioned responsibilities of corporate governance, the company will be required for wielding its power responsibilities while favouritism eliminate automatically(Nugroho, 2021). Therefore, the logistic company, Focus Logistics can portray a fair corporate management level in each possible way.
As per the given scenario of Focus Logistic, the company is running after by positioning family members in the hierarchical top and close friends for further operations without structuring their company department closely. Moreover, the CEO, Mrs Alice Rose-Gardneis going to be the self-nominated next chairperson due to a lack of board members which may create issues in further business scenarios specifically in times of expansion. Henceforth, the company can better focus on corporate governance for dealing with such issues.
According to the report ofFrerichs and Rogers (2022), the companies are working in different regional levels whereas the best leaders even required diverse oversights for managing third business regulations. As such the IDEX Corporation is providing robust disclosers over the compositions of organisational boards for practicing diversity. The company in order to enhance their productivity even seeks for regulating flexibility scale.
Describe how these would be beneficial for a large private company such as Focus Logistics as it transitions into an ASX listed entity.
Corporate governance is beneficial for companies that lead lucrative operations and performance capacity by attracting investors and stakeholders. Considering the variable of ASX listed company, the business entities are obliged to follow some potential guidelines set by ‘ASX Corporate Governance Council’ (ASX., 2022). In accordance with the Corporate governance assignmentguidelines, the present logistic business entity that is expanding its business boundaries to a national niche market must be insightful of the principles. As per the council principles, the company for managing its daily operations and oversight needs to lay concrete foundations. Secondly, following the council, the organisation Focus should have well-structured boards with managers that allow added advantages as such composition, commitment and so on. For effective business organisation transition, the company has to instil an industry-based culture that must reinforce lawful actions social responsibilities and ethical portraiture in the business landscape. In this regard, the company has to produce corporate integrity reports that should penetrate high-quality information regarding the organisational operations. As per the case scenario, the organisation is not intended to integrate reports regarding the business operations which is the most required for the ASX list. By determining to be listed in the ASX list, the logistic company, Focus Logistic must make their operations timely and disclose their balance for further decision making (ASX., 2022). Apart from this, Focus for enlisting the brand name in the ASX list has to monitor their security holders or board or members as key stakeholders by which risks can be assessed and managed. Lastly, the council principle stated that the company should remunerate fair responsibilities.
Apart from this, regulating the corporate governance in the business scenario as well as in large scale business entity, it can experience differently. Most importantly, corporate governance allows the companies to get drastic decisions by improving decisions approaching. Although Jacob Gardne, COO of Focus logistics has stated over building corporate governance, the company might slow down their process as well as decision-making process by endeavouring corporate governance rather it is not a real-time statement(Rathod, 2022). Apart from this, according to CFO David Rose, as the investors of Focus is acquiring 12 per cent of their board table, the organisation is probably securing their seats and careful about making throwaway statements or approach. In regards, in case the business shows its concern over building corporate governance it might employ good talented directors for its boards. The company in this Corporate governance assignmentcase can supervise their sustainability even in the ever-evolving scenario.
2. Summarise the significance, benefits and challenges of producing a sustainability report for Focus Logistics, especially for a business within the logistics industry. Despite the corporate governance practice, sustainability practice is highly required for emerging business profitability. The significance of the concept used on this Corporate governance assignmentreport is to assist the organisation in the decision-making process in a more effective and presenting way for further development. In fact, considering the logistic industry whereas supply chain management is the topmost priority of any logistic service entity, a sustainability report allows the company for enabling their potentiality in supply chain management and reduces their risks accordingly. In addition, sustainability report of logistic industry process with waste management or reduction associated with cost-saving. Based on the significance of drafting a sustainability report, the logistic organisations can endorse their practice more promptly. Following the case study, in reference to the statement of David Rose (CFO), Focus Logistic is considerably looking after their loyal customer base along with the faithful customers by generating a separate community rather than needs to push forward for development. In this connection, if the company, Focus Logistic create acustomers report, it might help them to attract more customers by targeting a new customer segment(Dinter, 2022). Apart from this, the company can attract esteemed talents for developing their productivity merging along with a loyal employees base. Most significantly, with the practice of reporting sustainability information, the organisation might exaggerate their business manifesto by upgrading its operational status.
By crafting a Corporate governance assignmentsustainability report the company not only get profits rather challenges and shortcomings in reporting the report are inevitable. In general, the logistic companies are responsible to supervise their supply chain and transportation in which energy consumption is expected ata high rate as well.According to Han et al. (2021), balancing between profitability and long term sustainability is creating hassle which might bea challenge for sustainability reporting. In fact, carbon footprint increased due to its excess practice that might impact sustainability reporting. In the Corporate governance assignmentscenario of Focus sustainability, the organization is not well aware of the fuel consumption that is working as contract-based while their fleet trucks have high consumptions limit.
Identify the key elements that should be included in such a report in this industry
Sustainability reporting of an organisation is considered to be the non-added reporting technique that is in nutshell for most of the company. Mostly for logistics companies or different industrial companies for quality sustainability reporting the organisers must consider the key five elements. The elements are stakeholder engagement, business progress reports and benchmarking, supporting frameworks for better business understanding, visually compelling and ensuring transparency. The company no matter their industrial standard or business size should acknowledge its stakeholders' engagement in highlighting the decision-making process(3R Sustainability, 2021). Most importantly, their customers and employees numbers, board of directors and investors or partners will be variable. As the sustainability reports assist the company in pitching investors for further expansions and investment, business performance evaluations and benchmarking are expected to do so. Apart from this, framework supports are highly required for unpinning the company development and performance of different managerial heads(3R Sustainability, 2021). Most importantly, the company should include their sustainability approach in form of CSR or ESG for ensuring its performance is compatible and sustainable in the longterm. Corporate governance policies and their approach can be additional elements for sustainability reports for logistic companies as it helps the organisation in remaining lucrative in the existing market.
For instance, MSC Cruises is keening to publish their sustainability reporting that showcasing their foundation of ‘zero impact operations’. The organisational group with the Advisory Board has supported their suitability team for ensuring their relevance progress and to review them consistently (International Shipping News, 2022). Executive Chairman of MSC Group has stated that navigating their extraordinary turbulence in last two years has been focused for sustainable business practice for which reason it has published its Corporate governance assignmentsustainability reports.
3. Summarise the key risks for Focus logistics and explain what benefits there would be in minimising risk.
In general, the logistic companies are expected and experience innumerable risk factors during their operational periods even after experiencing steady development and growth. Deteriorating organisational structure and regulatory oversight can be the major risk factors for a logistic company. In this conception, Focus Logistic even not structured its business by separating its operational departments and not regulating its business policies following compliance and law (Benz et al., 2021). According to the statement of Mrs Jennifer White, founder and current chairperson of Focus Ltd,for managing sustainability the company will not be able to purchase their own commercial trucks and operate a simple business which is hindering their business expansions although. Mostly, the organisational Chief Operating Officer has highlighted the risks that confirm to be confined to the business regardingcompliance issues (Munawar et al., 2021). The key risks identified on this Corporate governance assignmentthat the current logistic organisation is focusing mostly on are investors as due to lack of business clarityeven after such notable growth, investors are not been interested indealing with the company.
Most significantly, Focus Logistic Ltd will be more beneficial in minimising such risks that have been pinned in the abovesegment. As opined by Miklosik, Starchon and Hitka (2021) for mitigating the risks the organisation will definitely report with a sustainability statement by which it can better clarifyits business scenario to the investors for further monetisation. In refers to the company that performing with multimodal supply chains is engaging risks management practices. Blume Global for ensuring their end-to-end visibility for in operations is associating with Resilinc(Blume Global, 2022). According to the CEO of Blume, only with proactive participation in managing supply chain is the way of fulfilling shipment.
Provide clear and succinct advice on what actions the company should take to minimise risk.
For addressing the risks pinned in the above segment, the organisation Focus Ltd can better reflect on the sustainability reporting. In case the organisation insightfully manages their reporting technique it will definitely be transparent with its business information where it must structure its board of directors. In fact, performance evaluations can be possibly done through the same process as the Corporate governance assignmentsustainability report will consist of the benchmark through which the company will understand the importance of employing esteemed employing and allocating operational actions differently as per the departmental segment (Geerts, Dooms and Stas, 2021). Moreover, for minimising the risks of the organisation, the hierarchy has to supervise and monitor their daily operations which will be highlighted even in the sustainability report. Most importantly, theorganisational leaders, as well as executive board members, have to define the sustainable goals of the company for satisfying their corporate responsibility that will show their concern. Thus, the company by forecasting its sustainability approaches by step can better manifest their further development.
The above segment has included factors regarding the practice of logistic company and its dilemma for changing its structure. Moreover, it can be included in this Corporate governanceassignment that the principle of corporate governing and sustainability reporting including risk management cardinals.
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