Essays on How Does BHP Billiton Exhibit Control Assignment

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The paper "How Does BHP Billiton Exhibit Control" is an outstanding example of a business assignment.   Corporate governance is all about the processes, the rules or the laws that guide a business’ s operations. There has to be an administration in a business that administers specific duties for the business to run normally, there has to be a controlling unit from which orders come from or decision making come from and there has also to be a regulating unit that regulates power or how the business is controlled. All these are units of corporate governance.

Corporate governance is how the business is governed. The governance has to have a structure and rules and these guide the success of the management of the business (Brancato, 1997). It is a system by which companies are directed and managed (ASX, 2010) In order to determine the extent of compliance with corporate governance best practices, the best practices have to be outlined or described and compared with the activities of the company as described in the report. Corporate Governance Best Practices These are styles or characteristics that organizations use to manage or control the operations (Brancato, 1997).

There are no specific best practices or standard best practices that must be used by organizations in corporate governance. The argument behind this is that private companies are different from publicly owned companies, therefore, will not have the same corporate governance practices. Companies also have different business objectives which have to be achieved by different strategies. These different strategies also require different corporate governance approaches (Todd, n.d). This is why the performance of a corporation depends on the corporate governance style best suited for the corporation and not a specific approach to corporate governance.

This means that best practice depends on what style best suits a corporation. Any Corporate governance, however, has to have control, trust, sovereignty and influence (Brancato, 1997) & (Todd, n.d). Control means having the executive level officers and operational managers to manage the business according to its objectives, trust means developing trust between the shareholders and the management of the organization, sovereignty means defining specific roles for specific groups of the organization and influence means having one or two groups with more influence depending on what the organization wants to achieve, for example, it is indicated that organizations that allow the boards and the management to have more influence, with the shareholders having fewer rights pay higher dividends and stock repurchases to shareholders (Todd, n.d).

The practices can be used individually or together How Does BHP Billiton Exhibit Control? BHP Billiton has a corporate structure with the following The Board of Directors: This group has the role of representing the shareholders and is accountable to them for achieving the aims of the organization. This, the group does through the governance of the business by use of its own styles.

Overall decision making is done by the board of directors who receive information from the CEO, the sustainability committee, the risk audit committee, the remuneration committee and the nomination committee (BHP Billiton’ s Annual Report, 2010). This means that apart from the four basic best practices, the governance of BHP Billiton includes the sustainability committee, the risk audit committee, the remuneration committee and the nomination committee all which are considered important in the achievement of the organization's objectives.

These practices are specific to BHP Billiton.

References

Australian Stock Exchange (ASX), 2010, Principles of Good Corporate Governance and Best

Practice Recommendations. Viewed on 3rd November 2010:

BHP Billiton (B), 2010, Working with Integrity: Code of Business Conduct. Viewed on 3rd

November 2010:

BHP Billiton’s 2010 Annual Report.

BHP Billiton (A), 2010, Code of Business Conduct, Viewed on 3rd November 2010:

Brancato, C. K., 1997, Institutional Investors and Corporate Governance: Best Practices For

Increasing Corporate Value, Chicago: Irwin Professional Pub.

British Columbia Ministry of Finance, 2004, Tax Bulletin: Director's Liability. Viewed on 3rd

November 2010:

Ferrell, O. C., Fraedrich, J. and Ferrell, L., 2009, Business Ethics: Ethical Decision Making and

Cases, 7th Ed., New York: Cengage Learning.

Ledgerwood, J and White, V., 2006, Transforming Microfinance Institutions: Providing Full

Financial Services To The Poor, World Bank Publications.

Todd, A., n.d., Corporate Governance Best Practices: One Size Does Not Fit All. Viewed on 3rd

November 2010:

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