QantasIntroductionQantas Airways is Australia’s flag carrier which operates from Sydney. It is the largest airline in Australia and the oldest constantly operating airline across the globe. The company has a market share of 65 percent of the domestic market in Australia and carries 18.7 percent of the passengers coming in and going out of the country. Qantas has two harmonizing airline brands namely Jetstar and Qantas. Additionally, it operates other businesses and airlines in certain markets like Q Catering and Qantas Holidays. Its brands offer domestic, regional and global services. The company’s main strategy is enhancing the profitability of its two core brands.
It also aims at restructuring its global business operations in efforts to eliminate increasing losses (Plessis, McConvill & Bagaric 2005, p. 200). This paper will identify Qantas’ corporate governance key features and analyze how the company positions itself in engaging with stakeholders at the local and global levels. It will also talk about the ethical challenges of Qantas which can or cannot be handled using its present governance framework. Features of Corporate GovernanceGood corporate governance ensures the creation, enhancement and protection of the value of shareholders.
Qantas’ Board of Directors maintains and makes sure that the company’s management maintains a higher level of business ethics. Qantas’ corporate governance has several key features (Clarke 2007, p. 312). IndependenceAccording to Clarke (2007, p. 312), Qantas has ten independent directors. Such directors have the capacity to discharge their duties without being bound by business interests or other relations. They are also ready to air their views during board meetings without any concerns pertaining to their position as well as third party’s position. In order to ensure that the company gets the appropriate independent directors several factors are considered.
To start with, the director should not be a large shareholder of Qantas or have direct associations with a Qantas’ large shareholder. In addition, the director should not have served in an executive position in Qantas in the preceding three years. Moreover, the director should not be a customer or supplier of Qantas. He or she is also expected not to have any direct or indirect association with a customer or supplier of the company.
Besides, the director should not have served in the Board of Qantas for a duration which can materially hinder his or her capacity to function in the company best interests. All these requirements are aimed at preventing conflict of interest among the independent directors while serving the company. Directors’ election and re-election The Board and the Nominations Committees are responsible for the election of directors. They ensure that there is a correct balance between skills, expertise, diversity and experience. During the selection process, the Board seeks the assistance of external consultants and each member of the Board is given a chance to meet all the nominated directors.
After the selection, the appointed directors are given formal appointment letters which set up the main appointment’s conditions, terms and expectations. Re-election of directors is assessed by Nominations Committee. The directors are re-appointed according to the Constitution of Qantas as well as the Listing Rules of ASX (Clarke 2007, p. 314).