Essays on Vodafone Australia Corporate Governance Practices Case Study

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The paper "Vodafone Australia Corporate Governance Practices " is an outstanding example of a business case study. Governance is paramount in all sectors and it guarantees that the right things are done in the right procedures for the benefit of all the stakeholders involved. Integrity, correspondence and adhering to all the set policies ensure that governance is enforced within and outside the organization. Moreover, governance helps see that sustainability is achieved in all the practices as well as responding to all factors that affect the running of the organization (Gompers, Joy, & Metrick, 2003, p. 122).

Corporate governance is involved in checking on how an organization is controlled and led to issues pertaining to relationships and distribution of responsibilities as well as rights to all stakeholders involved. Furthermore, it determines and directs how rules and objectives are set in an organization according to its mission and vision as regard to its core values. Therefore, corporate governance helps in monitoring performance and accountability in an organization for a specified period to enable reporting to stakeholders on progress (Lan, & Heracleous, 2010, p. 298). Over time stakeholders have been sensitized on the importance of corporate governance and how it ensures the effective and efficient running of public organizations.

Openness and transparency are vital in corporate governance for public organizations in ensuring that practices, procedures, structures and strategies are developed with the public interest and not personal interests. The clear guideline is issued by a corporate governance framework that synchronizes the organization’ s boards and stakeholders responsibilities to achieving set goals and objectives. These help set priorities and utilize limited resources over a set timeframe without duplicated responsibilities on critical issues (Mainardes, Alves, & Raposo, 2011, p. 229).

This paper looks into at least three key features of Vodafone’ s Australia corporate governance framework and how it positions the firm to engage with stakeholders on local and international levels. Moreover, in a global context, it checks on what ethical challenges this firm may or may not be addressed with its current governance arrangements. Literature Review Corporate governance frameworks viewed from both perspective of agency and stakeholders can be likened to car wheels whereby for it to operate effectively, they must be balanced well.

In this era of rapid changes, corporate governance must be swift in responding to issues for sustainable control to be achieved. When dealing with roles and responsibilities in an organization it is important to note that there is a difference between business management and corporate governance (Palmrose, Richardson, & Scholz, 2004, p. 62). Business management deals with executive officers ensuring that daily activities are undertaken for productivity and performance to be recorded. On the other hand, corporate governance involves directors ensuring that the executive officers perform their duties appropriately according to the set rules and responsibilities for the realization of increased corporate value.

These directors make important and critical decisions on behalf of other stakeholders; this saves time and resources and ensures that sustainable progress of the organization is achieved (Salami, Johl, & Ibrahim, 2014, p. 18). Agency Approach From the agency theory, issues related to the relationship between business principals and agents of the business are addressed. The business principals being the shareholders while the business agents being the executive arm of the business. Therefore, the agency theory assists in resolving conflicts that may emerge when there are differences concerning the goals and objectives of the business.

The shareholders face the difficulty of verifying what the business agents are doing towards achieving the set targets. Hence, the theory helps to tackle such issues. Furthermore, the theory helps when there arise diverse attitudes between shareholders and executives on risk management in the organization. This is to help come to a compromise on what is to be done when risks arise in the running of the organization (Westphal, & Zajac, 2013, p. 627).

Considering the agency approach of the corporate governance framework, there exists assumptions that the business principals are one entity while in reals sense they diverse ranging from individuals to families to institutions. This introduces complexity in corporate governance because each group that forms the shareholders/business principals have diverse social interests. Moreover, the agency approach shows that corporate governance has narrowed the organizational perspective to shareholders rights ignoring the wider sociology understanding of the whole issue. The agency approach shows that corporate governance framework emphasizes more on the wellbeing of shareholders and does not consider chief factors affecting the agents of business (Salami, Johl, & Ibrahim, 2014, p. 26).

References

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Bertrand, M., & Mullainathan, S., 2003, ‘Enjoying the Quiet Life? Corporate Governance and Managerial Preferences’, Journal of Political Economy vol. 111, pp. 1043-1075.

Bertrand, M., Duflo, E. & Mullainathan, S., 2004, ‘How Much Should We Trust Differences- in-Differences Estimates?’ Quarterly Journal of Economics, vol.119, pp. 249-275.

Gompers, P. A., Joy, L. I., & Metrick, A., 2003, ‘Corporate Governance and Equity Prices’, Quarterly Journal of Economics, vol. 118, pp. 107-155.

L. L., & Heracleous, L. 2010. ‘Rethinking Agency Theory: The View from Law’ Academy of Management Review, Vol. 35, No.2, pp. 294-314.

Mainardes, E. W., Alves, H., & Raposo, M. 2011. ‘Stakeholder Theory: Issues to Resolve’. Management Decision, Vol.49, No.2, pp. 226-252.

Palmrose, Z.V., Richardson, V.J. & Scholz, S., 2004, ‘Determinants of Market Reactions to Restatement Announcements’, Journal of Accounting and Economics vol.37, pp. 59–89.

Salami, O. L., Johl, S. K. & Ibrahim, M. Y. 2014, ‘A Holistic Approach to Corporate Governance: A Conceptual Framework’ Global Business and Management Research: An International Journal Vol. 6, No. 3.

Vodafone, 2011, Corporate Governance: Vodafone Annual Report 2011, Available from [10 March, 2015].

Vodafone, 2014, Law Enforcement Disclosure Report: Legal Annexe, pp. 8-11, Available from [10 March, 2015].

Westphal, J. D., & Zajac, E. J. 2013, ‘A Behavioural Theory of Corporate Governance: Explicating the Mechanisms of Socially Situated And Socially Constituted Agency’. The Academy of Management Annals, Vol.7, No.1, pp. 607-661.

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