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Overall Growth And Success Of Organization Ã¢â¬Myassignmenthelp.Com
Question: Discuss About The Overall Growth And Success Of Organization? Answer: Introduction Corporate Governance is a set of laws, guidelines and procedures used inside the office in order to maintain a good corporate culture in the organization so that the company is able to meet up with the entire requirement. It is able to grow a good relationship between the company and the stakeholders thereby maintaining a long-term sustainable relationship. The directors, the Chartered secretary and the managers are able to achieve the good corporate balance and culture by following certain rules within the organization. Good corporate governance helps in the improvement of the organization growth and gives a high integrity and standard. The factors, which contribute to the good operations governance, are as follows: The directors- The directors plays a vital role in the improvement of the organization and the overall growth and the directors are the decision makers and whatever decision they take depend the overall growth and success of the organization. The shareholders of the company- Shareholders play a vital role in the growth of the organization, since they contribute to the capital of the organization. They are considered to be the primary owners of the organization, since they contribution money in the organization. In return, of the capital contributed by them they expect huge dividends from the company. Stakeholders of the company: The stakeholders or shareholders are the lenders of finance, the government organization. The Stock exchange and the financial institution, the employees the suppliers of raw materials and the lenders and the people at large, from whom the company is also dependent The community: The whole community, the society help in the upliftment of the company. The system of corporate governance is set of laws by which the organization is directed. It is a set of procedures and regulations by which the company can balance the interest of all the contributors and the people related to the company. They are the suppliers, shareholders, lenders, customers, the financial institution, and all the people. Board of Ardent Leisure recognise and manage the risk arising from this incident The Board of Ardent Leisure who was the owner of Dream world went into crisis after the disaster in 2016. There was a tragic incident and the people were killed. The incident occurred on the thunder river rapid ride. It is one of the biggest attractions for the tourist. That incident occurred due to the vessel that was not working according to the report said. The company that owns the dream world park was responsible for the accident. They were required to maintain the rides and then needed to ensure that the people who were riding the ride was safe and thus the rides in the park are functioning properly. The company needed to ensure the health and safety of the tourist who were riding the thunder ride. After investigation it was found that the ride was not maintained and kept properly fort the last four years. The workers were informed that the theme park Dream World did not have proper management and maintenance. There has been number of problem and concerns that was raised to during that time. The directors and the management said that the tourist were aware about the risk at the time they were taking the ride. But this is not a justification that the company will not maintain the rides and they will ensure the safety of the tourist so that they can avail the ride being aware that it is risk free. Thus it has been the fault of the organization that they failed to maintain the safety of the tourist. Due to their mistake and negligence the tourist faced this terrible accident. The disaster was very grief in nature and this caused a huge damage to the organization and the company had to pay a huge financial penalty, since they were not able to recognise and manage the risk arising from this incident. ASX principles of Good Corporate Governance The principles stated in the governance highlight the rights and responsibility that is distributed among the various participants that is in the corporation. It includes that the procedures that the rules that the regulation of decision making in the corporate affairs through corporate governance. It also includes that the processes through which the objectives of the corporations are set and followed in the social, market environment and regulatory context. The mechanisms of governance include monitoring the actions, practices, decisions and the policies of the companies, its agents and stakeholders. Discussion The practice and structure of corporate governance is an important and continues to be important in the determination of the directors liability for breach of ASX principle of corporate governance. In the assessment of the corporate governance practices, Australia commences from a position of strength. It is however important to seasonally review the practices of the directors and the management so as to promote high standards of transparency about the practices of corporate governance of listed entities.The council gives the listed companies the flexibility to adopt alternative practices of corporate governance, if considered suitable depending on its requirement. Corporate governance ensures that the risk of the board and the responsibility that the company can comply with those regulations and the board shall comply with all the laws. It ensures that the board gets the information, which will enable them to do their work efficiently and effectively. It enables to communicate thus it ensures proper flow of information and is able to communicate with all the stakeholders. It will thus evaluate the performance for the executive officer and throw opportunities to the board to run his organization efficiently. marketing improves the skill, competencies required for the people to the task. There is a policy and training programs, which will help in the improvement of the board and help at the board to perform better The directors had breached their duty of care and diligence The directors and the management had done breach of their duties since they did not have care and diligence for the proper maintenance of the rides. This posed significant loss of the company since the event was tragic The reasons are as follows: Reason 1- The riders were not adequately restrained against being thrown from the raft. All four riders who were killed were thrown from the raft. The restraints in the raft were a lap sash seatbelt and a bar to hold. There should have been a double shoulder harness, as in roller coaster rides . Reason 2- The conveyor belt which was lifting the raft had been unsafely modified. The conveyor belt lifted the rafts at the end of the ride to the start of the ride loop. The accident occurred because the raft in front had got stuck at the top, and when the fatal raft hit it, it flipped. Reason 3- The normal practice is that attendants are stationed in line of sight positions along rides in theme parks. They have the ability to stop a ride if they see something wrong. It is not known if an attendant was watching the conveyor belt on this ride. Reason 4- There was no separator to prevent rafts from colliding with each other on the conveyor belt. It is normal for rafts/cars to be kept separate with a separator. The Dream world theme park was closed for 45 days, resulting in a financial loss for its owner Ardent Leisure, including a 44.5% drop in earnings to 30th June 2017. Board review and improve the effectiveness of the companys risk management framework The type of governance and the practices that a company or the organization chooses to adopt is basically a matter that the board of directors and also the top management is charged with all the legal responsibility of managing its businesses with the due care and the diligence. The management is therefore charged with ensuring that the company is appropriately governed and has appropriate governance policies in place. Under these recommendations and principles, a listed companies has board which considers that the recommendations of a council is inappropriate to its particular situation, it is free not to adopt it. In case there is failure to adopt it, then it must elaborate clearly why it has not adopted the recommendation. This is what is referred to as the if not, why not approach. The need for this explanation is to ensure that the market receives an appropriate level of information about the companys governance arrangement. This will ensure that: security and other stake holders in the entity in question can get the opportunity to have a conversation that is meaningful to with the companys management on matters of governance. The holders of securities can use these information obtained on decision making and how to vote on particular resolution. Investors can also use the information to determine whether or not to invest in the securities of the company. This approach is vital to the principles and recommendations operation. The principles and recommendations apply to all the companies that are listed, irrespective of the legal form that they take, or whether or not they are established within Australia or another place, or even if they are companies managed internally or externally. Some of the recommendations need to be modified when they are applied to companies that are listed and externally managed. The principles and the recommendations are directed specifically to, and only intended to apply to those companies that are listed in the ASX. However, as they give a contemporary perspective of the appropriate corporate governance standards, other different bodies may get it useful in setting up their rules of governance or practices. The principles and recommendations which are structured and that seek for the improvement of some principles. These principles are to be laid that a foundation that is solid for the management that has and the oversight. This means that a listed company should establish then disclose the respective responsibilities of the managements and how their behavior is monitored and evaluated. The boards structure in value addition; a company that is listed should have an appropriately sized board, composed, and with relevant skill and commitment to help it in discharging its duties effectively. The other principle is to act in an ethical and manner; a company that is listed has to act in an ethical and responsible way. Another principle is to safeguard its integrity in corporate reporting; a company that is listed must have formal and punctilious processes which verify and also safeguard independently its corporate reporting integrity[1 References Austin R.P. and Ramsay, I., Ford's Principles of Corporations Law, 15th Ed. 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