MBA402 Governance, Ethics and Sustainability Report 3 Sample
Your Task
Write a report to a company board summarising your views on corporate governance, sustainability, and risk management practices.
Assessment Description
Preparing well written reports for an audience as sophisticated as a corporate board on fundamental topics such as corporate governance, sustainability, and risk management practices is an important capability for business managers.
The Learning Outcomes you will demonstrate in performing this assessment include:
LO1: Evaluate the success (or lack thereof) of an organisation's governance responsibilities
LO4: Analyse the sustainability initiatives practiced within organisations and determine their effectiveness in meeting corporate and ethical objectives
LO5: Apply corporate sustainability practices in a real?world example and examine their appropriateness in a variety of contexts
Assessment Instructions
1. Read the Case Study document which will be made available to you on Monday, Week 10 in
MyKBS under the Assessments tab.
2. Prepare a short, written report answering the questions in the Case Study.
3. Include at least five academic references from academic journals and textbooks, as well as full details of informational sources you consulted as part of your assignment research.
Please refer to the assessment marking guide to assist you in completing all the assessment criteria.
Question 1: Identification and discussion of the three appropriate ASX corporate governance principles
JKM was started by the soil scientists Keith Milton and Joshua Milton and the company later extended the operations through the mining industry site recovery. Starting the project of the water reclamations, significant capitalization has been made through the ASX governance principles.
Laying foundations for oversight and management
JKM has a restructuring impact on the next generation as this has been a family business. According to the guidelines of the ASX, the company must introduce the technique of risk maturity so that the world meets the industry stakeholders' and environmental expectations (Ping & Teck, 2020). For UNI Assignment Help, The principal advocates for a solid bedrock for governance and insights. The attitudes and cultures will constantly be introduced to the management so that the stakeholders can comprehend the market needs and work according to the guidelines. The responses and identification of the risks can be managed in an environment that must be here in JKM. The company is built up that maintains the ASX guidelines and affects governance infrastructure. Strategic planning must reflect the notion of risk maintenance and reporting of the risks.
Make balanced and timely disclosure
Even though the company is enrolled into an ASX-listed entity or not, the appropriate standard and style of corporate governance create value for the shareholders (De Bont, 2022). The board charter must clarify the responsibilities and roles of the people. There should be no misunderstanding in terms of the accountabilities. The secretary of the JKM will also discuss crucial aspects of corporate governance. The secretary must do a few administrative tasks for the boards and the management. Management must be appropriately screened and the written agreement must express the clear indications of the written agreements. The screening must be done for education, experience, characters, bankruptcy history and criminal records. The entity must maintain a written agreement with the senior executives and the directors (Ali, Liu & Su, 2022, p.1642). The factor might also be enlisted here that can hamper the independence of the directors. The principal corporate policies are demonstrated to maintain the written agreement's authenticity.
Structure of the board to add value and be effective
The role management must be sincere in putting forward the roles of the manager in identifying the diversity policies. The senior workforce must set measurable objectives in guiding management principles (Farooque, Hamid & Sun, 2021, p.48). The indicators of the performance evaluation anticipate the risks that can be faced by the JKM management and take the appropriate measures. The company must introduce operational delivery that the technological procedures must facilitate. The strategies of management must maintain ethics, governance and sustainability. JKM must allocate limited sources to ensure operational flexibility and feasibility. The values enhanced in the management add to the effectiveness of the structure. The fats are disclosed to the committee that ensures the appropriate balance of expertise, skills, responsibilities and duties. The efficient evaluation must set clear guidelines for setting up the capabilities in a positive direction. The management of the procedures considers the appropriate management that ensures the effective management of powers and positions (Ali, Liu & Su, 2022, p.1642). As in the case of JKM, the proposed collaboration aligned with the company expansion that focussed on the insights of the management and the reluctance to invest. The board members and the senior executives are the closest families who also felt the need to comply with the ASX guidelines. Keith Milton opined that the company has been looking forward to being enlisted into the stock market.
Beneficial for JKM
This is clear that compliance with ASX guidelines will never be an onerous responsibility for JKM. The company does not require outsiders to check sustainability credentials (O'Brien, 2019, p. 78). Following the guidelines will have potential benefits as it will have the proper risk management framework. Attendance of the board meeting plays an exponential role in generating risk management structures. Engagement in sustainability reporting is possible and the best practices can be possible for corporate governance to be held with exponential values. JKM co-founders and the CEO, chairpersons will have a strong and strategic vision in doing the land reclamation projects and maintaining transparency and innovative values. JKM will benefit through the amended capitalisation for the company operations through the strategic platforms. The executives, managers and employees will be given proper training to withstand the management changes and combat all kinds of risks (Ping & Teck, 2020). Ore-crop intends to invest in JKM with a 20 % ownership stake. Ore-crop will be involved in the reporting of sustainability and the incorporation of the management of risks. The effectiveness of the risk management procedures will be maintained and the integrity of the corporate reports will be conformed to.
Repurposing JKM structures and the following ASX principles will help extend the industrial activities and the recovery of the mines. The water reclamation project has been made from the project portfolio. Each activity will safeguard the rights of the activity holders that will be integral to the JKM operations. The focus is on the long term that would set up the policies for stating the quality directors with attractive remuneration (Safari & Parker, 2023, p. 20). Senior executives will be motivated and trained with practical principles that will help JKM gain maximum profitability in the long run. The integrity in the managers' responsibilities is maintained, which affects the success of the Milton/Peterson family. The families are given a significant role that suggests the company is bound to go by the policies to safeguard the system. The entity's values and risk management strategies will be reinforced to manage the system's practical sustainability. The broad concepts embodied in governance capture the dynamic force that moves on through practical principles (Warren, 2020). Disclosing all the arrangements to the members will significantly enhance the stakeholders' confidence. The business visions and the decisions will have principles that have equal importance in managing the practical principles.
Question 2: Sustainability Report
Benefits and Challenges Producing Sustainability Report for JKM
Environmental sustainability has been proven to allow the company to run the operation effectively to prevent the ecosystem's health from being compromised. As the JKM industry tends to find the problems about the factors causing trouble in agriculture, sustainability reports can provide the company with critical topics and ways to deal with them. Identifying soil contamination is one of the advantages (Buallay, 2019, P.98). According to the sustainability report, various human activities can contaminate the soil. It has been shown that the rate of soil contamination in urban areas is the highest. The reason behind this cause is former industrial sites and their land developments, industrial dumps and vast amounts of pesticides, which can potentially impact that area’s soil. Through the detailed report, JKM learned that biological treatments could aid soil contamination, as many bacteria helps decompose the oil's substance. JKM is using advanced technologies to clean the groundwater. Sustainability reports show that using pump and treating systems, air sparring, or bioremediation can help to clean up the groundwater (Tsalis et al., 2020, P.1617). All these factors show that a detailed sustainability report provides JKM Company with solutions to create efficient agricultural circumstances. The sustainability report helps the company attract more industries seeking their services for practical solutions. Also, the government is providing backup to JKM Company as their cause shows the potential to impact the environment for betterment.
Although there are some challenges in using a sustainability report, the broadness of the report can create confusion in the company. Many documents are needed to make a sustainability report, especially communication and education is a crucial factor to make the report (García?Sánchez et al., 2019, P.832). Also, JKM has to ensure that all their suppliers and providers are on the same page to adapt the process and ready to submit all required documents. However, in that case, the JKM Company has to become dependable on others to proceed further. This broadness of the report can also help JKM’s competitors gain knowledge about their work process. Another challenge a sustainability report offers is the enormous uncertainty in the necessary framework. As sustainability reports require proper knowledge about metrics, it causes uncertainty in making the framework (Ong and Djajadikerta, 2020, P.2). Metrics depend on environmental factors. However, as the environment constantly changes, it disrupts the metrics too. This factor causes the JKM Company trouble keeping pace with the changing data management and providing a compacted report. Also, these factors are causing trouble for JKM Company to work fluently to solve the environmental hazards.
Identification of the Elements Included in Sustainability Report for Mining Industry
Earthwork excavation and extraction of minerals and metal ores in the mining industry negatively impact the sustainability of the environment. Agricultural and other economic activities of communities are impacted by soil and water contamination. People residing near mines face several health hazards due to contamination in the groundwater reserves. There are several standard treatment methods for contaminated soils: Bioremediation, chemical oxidation, and soil stabilisation (Batista et al., 2019, P.102898). Generally, these methods are recommended by soil testing agencies. A recommendation for controlled implementation of a remedial soil report can characterise an effective soil remedial report. The sustainability report or consultancy will be such that the report should be such that the treatment process will not harm the environment. This implies that the spreading of harmful substances should be prevented, and the health of the workers and livelihood of the people and community will be safeguarded. The sustainability report should recommend effective measures related to soil remediation, groundwater remediation, sentimental remediation and remediation of harmful disposal of pollutants. Remediation through various biological treatments should be included in the sustainability report. Bioremediation processes are more sustainable as this process depends upon microorganisms that include bacteria and fungi for the degradation of pollutants (Rodrigo-Comino et al., 2020, P.1178622120977491). Contaminants like halogenated organic solvents, hydrocarbon nitrogen compounds, and poisonous metals such as lead, mercury, chromium and should be treated through effective remediation.
Question 3: Key risks for a company
Some risks for JKM
JKM carries some risks according to their work ethics. The main concerning factor about JKM is its current company structure. It has been considered one of their key risks, as the management team and various operational controls lack the potential. Also, investors often become concerned before investing, as the board members of JKM are family members. Also, according to Keith Milton, JKM is not commanding correctly on the required resources of MNC. He also fears that restructuring the company for improvement can cause trouble for future generations to run the business. Another risk to JKM is regarding its sustainability report. As the company provides detailed sustainability reports to other industries, lacking the proper recruitment can cause trouble for the company. Lacking valuable information in the sustainability report can make JKM lose customers. Not only that, sustainability reports require many resources to be completed. As a result, the cost of compliance is a crucial threat to the current company (Chaudhuri et al., 2021, P.1550). Especially when the company faces a management issue, cost management can be a real threat to the company.
Benefits of minimising risk
The risk minimisation in JKM is strategically significant in triggering profitability and maintaining consistency throughout. The management has taken active steps to clean the contamination of the soil. The sustainable methods incorporated in the management will benefit JKM and ensure the prospects of the investors and the board members. Eradicating the negative impacts on the surroundings fosters eco-friendly practices amongst the management, members, and employees (Kara, F?rat & Ghadge, 2020, p.105570). Toxicity vanishes, and the circulation of the nutrients gets positive consequences and garners positive criticism. Optimal results are driven in productive ways that determine the establishment of efficacious strategies. The hazardous substances are eliminated that can be effective for the JKM. Risk management decreases the burden on the stakeholders and more the chances of investment flow.
Action needs to be taken by JKM
JKM must develop an alliance with the partners of remediation services who can offer the clients high-quality technical services. Partnerships with probable channels and individuals might help diversify the service distributions. The emergency responses to risk management must be resilient and can also provide strategic insights to the company (Asr et al., 2019, p. 215). The development of the land can prevent further environmental degradation and the environmental engineering approaches must be solidified that could offer the risk response strategies and the development of the solid stratagems. The regulatory report can be conducted thoroughly and correctly to ensure compliance. The evaluation and the testing of the soil, regularly done, have conducive effects on the management of functions. The refreshed ecosystems can yield positive consequences for the company to devise efficacious stratagems (Kara, F?rat & Ghadge, 2020, p.105570). Cost-effective stratagems build a resilient ambiance along the environment.
Reference List
Ali, S, Liu, B & Su, JJ., (2022), ‘Does corporate governance have a differential effect on downside and upside risk?’, Journal of Business Finance & Accounting, vol. 49, No. 9-10, pp.1642-1695. DOI: 10.1111/jbfa.12606
Asr, ET, Kakaie, R, Ataei, M & Mohammadi, MRT, (2019), ‘A review of studies on sustainable development in the mining life cycle’, Journal of Cleaner Production, vol. 229, pp.213-231. DOI: https://doi.org/10.1016/j.jclepro.2019.05.029
Batista, PV, Davies, J, Silva, ML & Quinton, JN, (2019), ‘On the evaluation of soil erosion models: Are we doing enough?’, Earth-Science Reviews, vol. 197, p.102898.DOI: https://eprints.lancs.ac.uk/id/eprint/135811/1/Batista_et_al_2019_in_press.pdf
Buallay, A, (2019), ‘Is sustainability reporting (ESG) associated with performance? Evidence from the European banking sector’, Management of Environmental Quality: An International Journal, vol. 30, no. 1, pp.98-115. DOI: https://doi.org/10.1108/MEQ-12-2017-0149
Chaudhuri, R, Chavan, G, Vadalkar, S, Vrontis, D & Pereira, V, (2021), Two-decade bibliometric overview of publications in the journal of knowledge management. Journal of Knowledge Management, vol. 25, no. 6, pp.1550-1574. DOI: http://dx.doi.org/10.1108/JKM-07-2020-0571
De Bont, K (2022), ‘Announcements search’, ASX, Available at: <https://www.asx.com.au/asx/v2/statistics/announcements.do> (Accessed: 05 June 2023)
Farooque, OA, Hamid, A & Sun, L, (2021), ‘Does corporate governance have a say on dividends in Australian listed companies?’, Australasian Accounting, Business and Finance Journal, vol. 15, no. 4, pp.47-75. Available at: https://ro.uow.edu.au/cgi/viewcontent.cgi?article=2228&context=aabfj
García?Sánchez, IM, Hussain, N, Martínez?Ferrero, J & Ruiz?Barbadillo, E, (2019), ‘Impact of disclosure and assurance quality of corporate sustainability reports on access to finance’, Corporate Social Responsibility and Environmental Management, vol. 26, no. 4, pp.832-848. DOI: https://doi.org/10.1002/csr.1724
Huan, H, Hu, L, Yang, Y, Jia, Y, Lian, X, Ma, X, Jiang, Y, & Xi, B, (2020), ‘Groundwater nitrate pollution risk assessment of the groundwater source field based on the integrated numerical simulations in the unsaturated zone and saturated aquifer’, Environment international, vol. 137, p.105532. DOI: https://doi.org/10.1016/j.envint.2020.105532
Kara, ME, F?rat, SÜO, & Ghadge, A, (2020), ‘A data mining-based framework for supply chain risk management’, Computers & Industrial Engineering, vol. 139, p. 105570. DOI: 10.1016/j.cie.2018.12.017.
O'Brien, J, (2019), ‘Corporate culture and the search for authenticity; Law and Financial Markets Review, vol. 13, No. 2-3, pp.77-80. DOI: https://doi.org/10.1080/17521440.2019.1612618
Ong, T & Djajadikerta, HG, (2020), ‘Corporate governance and sustainability reporting in the Australian resources industry: An empirical analysis’, Social Responsibility Journal, vol. 16, no. 1, pp.1-14. DOI: https://doi.org/10.1108/SRJ-06-2018-0135
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