Rudrakshi answered on Feb 22 2022
MBA402 CORPORATE GOVERNANCE, SUSTAINABILITY AND ETHICS
CASE STUDY WRITTEN REPORT
Table of Contents
As stated by Rudyanto and Siregar (2018), focus Logistics, Australia's sixth biggest private logistics firm, was started in 1965 by Mrs White in Horsham, Victoria, with the motto "Go Local." The company provides countrywide logistics solutions for small enterprises (SMEs). Focus, which is attempting to become an ASX-listed business, need extra funding to fulfil its development strategy, according to Rose, who noted that the firm has shown some promise in the previous six months. Conferences with investors and private equity firms were scheduled for the day. Although Focus Logistics is a significant firm, the corporation receives a great deal of negative feedback from customers and the business has inadequate managerial control as well as a lack of management and reporting capabilities.
He said that the company was still operated in the manner of a family business. In addition, they pointed out that numerous managerial and executive roles are held by family members and close associates and that there are no board committees at the company, among other things (Bae et al. 2018). In order to address all of the concerns of investors, Focus Logistics must adhere to sound corporate governance procedures, one of which is the Governance Frameworks: It is critical for any firm to adhere to the primary structure of the organisation, upon which the organisation was founded. The governance framework is similar to the foundation of a corporation since it focuses on the fundamentals, on which an organisation should be operated, such as accountability su
ounding roles and duties and accountability.
Commitment to constituents, as well as interaction with them and developing sustainable business practises, among other things, second, management paperwork is one of the most significant practises that a business, such as Focus logistics, must adhere to. Because Focus logistics is a firm that is always evolving and forging ahead, it is critical that the governance documentation be kept up to date and co
ected (Scherer & Voegtlin, 2020). These papers may aid in the establishment of the regulations, by which the firm is governed, the definition of the rights and duties of the shareholders/owners and the provision of proof to authorities and other stakeholders about the corporate governance in place in the organisation.
Mrs White responded to investors' concerns about operational risks by stating that trucks are the backbone of Australia's economy and that she should think of a comparatively simple business than purchasing a truck, hiring someone else to drive it and having the customer settle the account a couple of days after that. According to her, enlisting attorneys and experts in costly lawsuits just serves to make problems more difficult than they need to be. Jacob Rose, Mrs Rose's 26-year-old son, shared his thoughts on corporate governance with the business's chief operating officer, Jacob Rose. Jacob Rose believes that corporate governance inhibits and decreases the rate the board's priority setting, as well as innovation and creativity, which results in unnecessary complications in running a company.
The board's exclusive focus, he believes, should always be on maximising shareholder profits until and until policies are in compliance with existing laws and regulations. He went on to say that, it is preferable to pay a minor fee rather than spend thousands or millions of dollars on useless and unending compliances and that a family-run firm should always place a greater emphasis on accomplishment rather than compliance (Salvioni & Gennari, 2019). Mrs Rose's other son, David Rose, the company's chief financial officer, had a distinct perspective. As an outcome of his comments, they are no longer considered a "local" firm. Since Nan began her company on her kitchen table with just Uncle Sam as a truck driver, a lot has changed.
Today, they employ more than 2,000 employees, not including the 3,000+ contractors that work for us. He went on to say that he feels that firms functioning democratic have a greater responsibility to care after their workers, particularly subcontractors, than they do now. According to him, it would be fantastic if their colleagues could identify them as the leaders in corporate governance and environmental policies in the future. This view of David focuses on the strategies of corporate governments, since it is critical to guarantee that corporate governance concepts are cascaded, consistently and effectively down to subsidiary boards, as well as that subsidiary boards are aware of their respective obligations.
Because of the fact that...