This Section of the Report Focuses on the Principles Corporate Governa

Question: How Wesfarmers has been operating the Australian and New Zealand ? Answer: Introduction Wesfarmers has been operating the Australian and New Zealand markets in the chemical, mining and retail industries along with the markets for industrial and safety products. The organization is the largest company in Australia with close to 66 billion Australian Dollars revenue as per the analysis of 2016 financial year. To maintain this leadership in the corresponding markets, the management of Wesfarmers should implement effective and efficient corporate governance in the workplace, which in turn provides the employees with a set of guidelines to carry out and excel in their daily activities. Good corporate governance will allow Wesfarmers to have better control on all of its resources and better management of all its business activities. This report focuses on corporate governance which can be implemented in the workplace of Wesfarmers in order to yield a lot of value out of it and to enhance its business processes (Beekes, 2015). Principles This section of the report focuses on the principles on which the corporate governance of Wesfarmers will be based on. These principles define the guidelines to be defined as part of the corporate governance and the policies to be implemented in the workplace of the organization. These principles are mentioned below. Customer and stakeholder focus This principle allows the business model of Wesfarmers to focus on the needs and requirements of the customers and stakeholders. These needs are put at the highest priority by all the business processes of the organization, which in turn allows the customers and stakeholders to have pleasant experiences with the organization (Claessens, 2013). Equality The corporate governance should ensure that all the employees in the workplace of Wesfarmers should be treated equally. This in turn will allow the management of Wesfarmers to have a strong and motivated workforce (Larcker, 2015). Transparency All the information in the workplace of Wesfarmers will be transparent as per the corporate governance, which in turn will allow the organization to have an efficient flow of information throughout the organization. This allows the organization to maintain a strong workforce having complete knowledge of the business processes of the organization (Christensen, 2015). Business ethics This principle of the corporate governance focuses on the integrity and ethical behavior of the employees in Wesfarmers. The corporate governance will allow the employees to be integral to the organization and to have ethical behavior in the workplace (Chan, 2014). Governance model This section of the report focuses on the model of the corporate governance to be used in the workplace of Wesfarmers. Dual board The dual board model of the corporate governance will allow Wesfarmers to improve its business processes to a significant extent. With this dual board governance model, the higher management of Wesfarmers will report to the board of directors and the board of directors will be supervised by a board of supervisors (Larcker, 2015). The board of directors and supervisors will be two independent entities responsible for carrying out their duties separately. This in turn allows both the boards to have separate business activities. Board of directors This board consists of a representative of the higher management, chief executive officer and chief operational officer along with a group of executive and non-executive directors responsible for providing their opinion and suggestions. This board will have the responsibilities for designing, envisioning and approving various business strategies and policies (Tricker, 2015). The higher management of Wesfarmers will report to the board of directors about the status and operations of various departments in the business model of the organization. The board of directors will control most of the critical business decisions and will include the higher management and line management along with the individual employees in most of the decision making processes (Kim, 2013). Board of supervisors The board of supervisors of Wesfarmers consists of the members elected by the employees of the organization. These members will be responsible for monitoring the board of directors and following their decision making process. This in turn allows the board of supervisors to ensure that the board of directors is not misusing the available power and is following the corporate governance implemented in the workplace of the organization (Iliev, 2015). The board of supervisors will consist of previous executive and non-executive directors of Wesfarmers along with the representatives elected by the employees of the organization and from different departments. Legislations and regulations The corporate governance will have a major role in maintaining the adherence of Wesfarmers to the legislations and regulations applicable to the corresponding industry and market. This in turn will allow the management of the organization to ensure legal and efficient business processes of the organization. Some of these legislations and regulations are mentioned in this section of the report. Corporations Act 2001 Australian Securities and Investments Act 2001 These legislations are collectively known as Australian corporation law, which in turn defines the restrictions and guidelines for the business processes of any corporate body in the Australian markets. The corporate governance of Wesfarmers will ensure the adherence of all of the business processes to the Australian corporation law (Miglani, 2015). Along with the Australian corporation law, the business processes of Wesfarmers will adhere to the anti-corruption, the bribery act and the foreign corrupt practices act. These are a few of the legislations kept in focus by the corporate governance of Wesfarmers (Hay, 2016). Audit process The audit process is one of the major components of the corporate governance to be implemented in Wesfarmers, which covers all the business processes of the organization. The corporate governance of Wesfarmers will create an audit committee with the representatives from the employees and higher management along with a few of the directors of the organization (Bell, 2014). This committee will be responsible for auditing the business processes of the organization in regular time periods. These audit processes will be analyzed on the basis of a number of factors to define the principles of the corporate governance and to monitor the performance of the business processes on the basis of these principles. So, the audit processes included in the corporate governance of Wesfarmers will include the activities of checking whether equality, transparency and business ethics are maintained in the workplace along with customer and stakeholder focus (Bain, 2016). Board committees The corporate governance of Wesfarmers will allow the creation of several other committees in the workplace of the organization in order to support the activities of the board of directors and the board of supervisors. These committees are mentioned in this section of the report. Audit committee Responsible for the audit processes carried out in the workplace to monitor the adherence of the business processes to the government policies CSR committee Responsible for setting the CSR goals and carrying out the CSR activities as part of the business model of Wesfarmers (Young, 2014) Investment committee Responsible for all the investment decisions taken by the organization and works with the board of directors to finalize the investments Nomination committee Responsible for the nomination processes carried out in different departments of Wesfarmers, which in turn leads to various critical business decision making processes Remuneration committee Responsible for the management of the remunerations of the human resources in the workplace of Wesfarmers Risk committee Responsible for the identification, analysis and management of the risks in the business processes of Wesfarmers along with the recommendations provided to the board of directors to create or update the organizational policies (Whincop, 2017) Conclusion This corporate governance will allow the management of Wesfarmers to streamline the business processes in the workplace of the organization. As mentioned in the report, the corporate governance of Wesfarmers will focus on all the components of its business model, which in turn will allow the management to ensure effective and efficient execution of the business processes in the workplace of Wesfarmers. So, the implementation of this corporate governance in the workplace of Wesfarmers will in turn lead to enhancement of the business processes in terms of quality and performance, which leads to more profit. This corporate governance will allow Wesfarmers to yield more revenue out of the business processes and to gain leadership in the corresponding industries and markets (ArAs, 2016). References ArAs, G. (2016).A handbook of corporate governance and social responsibility. CRC Press. Bain, N., Band, D. (2016).Winning ways through corporate governance. Springer. Beekes, W., Brown, P., Zhang, Q. (2015). Corporate governance and the informativeness of disclosures in Australia: a re?examination.Accounting Finance,55(4), 931-963. 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