Essays on Commonwealth Bank of Australia - Governance in the Globalizing World Case Study

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The paper "Commonwealth Bank of Australia - Governance in the Globalizing World" is a perfect example of a business case study. Corporate governance is not a new concept in the business world. It refers to the processes, people, and range of activities that are instituted to ensure that there is formalized and proper as well as direction oriented stewardship of any firm’ s assets (Gnan et al, 2013). It also involves the accomplishment and execution of various processes that ensure to ensure that the executive uses their time, talent and resources effectively even in the absence of the owners of the firm.

These processes can be highlighted as risk management, marketing and operational strategies, internal control mechanisms, conformance to set regulations, public relations, communication and financial reporting (Gnan et al, 2013). The aim of this report is to evaluate the corporate governance framework of Commonwealth Bank of Australia as well as the ethical issues that the company has or is likely to face in regard to the corporate governance framework present. Literature Review Corporate Governance Framework Boards of organizations with good corporate governance frameworks have a better understanding of their ultimate role which is oversight of every process that is aforementioned.

This framework must-have attributes that direct the organization towards effective governance as well as tools that are competent enough to manage governance risk. There are two main aspects of the corporate governance framework. These are the stakeholders, shareholders and agency approach or theories as per some literature. The framework just envisages how the firm is controlled and owned. However, for the scope of this report only two will be discussed; stakeholder and agency approach. Agency Approach or Theory This approach or theory has been identified by various kinds of literature to be the core theory explaining corporate governance.

Kholeif (2009) asserts that in this approach, the shareholders are placed on top of the stakeholders in terms of their preferences making them the resilient persons in the company.


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