Source review Text 2
In the article ‘Corporate Governance Principles and Recommendations with 2010 Amendments’, ASX Corporate Governance Council (2010) defines corporate governance in Australia and introduces eight corporate governance principles and recommendations. The article is related to the BABC report on the definition of corporate governance and explanation of the key principles of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations which have a strong focus on ethics. However, excessive information and few examples make it hard to obtain useful evidences to support the BABC report.
This article is useful to define the corporate governance and examine the relationship between the key principles of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations and ethics. The council (2010) expounds eight principles and recommendations to guide the listed companies, their investors and the wider Australia community constantly. To support the principles, the council provides the definition of corporate governance as ‘the framework of rules, relationships, systems and processes within and by which authority is exercised and controlled in corporations.’ (The ASX Corporate Governance Council, 2010, p.3). While the principles and recommendations are coherent and some parts of them are related to BABC report topic, the massive information and few examples make it hard to acquire the relevant information. This is limiting since the BABC report only requires principles and recommendations about ethics.
On the one hand, the key principles of the ASX Corporate Governance Council’s principles and recommendations have a strong focus on ethics. For instance, principle 2 is that ‘Structure the board to add value.’ This principle requires companies be responsible, which reflects responsibilities and duties on business ethics. However, some of recommendations of principle 2 are irrelevant to the...
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