Corporate Governance

Topics: Corporate governance, Board of directors, Management Pages: 33 (12221 words) Published: August 24, 2013
Table of Contents
EXECUTIVE SUMMARY2
INTRODUCTION3
1. ASSESSMENT MODEL3
2. ASSESSMENT ON EACH ORGANISATION5
CHINA MOBILE LTD5
DAIMLER AG7
SAMSUNG ELECTRONIC CO. LTD9
QANTAS AIRWAYS LIMITED12
WORLD VISION AUSTRALIA14
3. OVERALL EVALUATION16
CONCLUSION17
LIST OF REFERENCES18
APPENDIX21
Assessment Model for China Mobile Ltd21
Assessment Model for Daimler AG24
Assessment Model for Samsung Electronics Co. Ltd27
Assessment Model for Qantas Limited30
Assessment Model for World Vision Australia34

EXECUTIVE SUMMARY
The corporate governance of five organisations (China Mobile Limited, Daimler AG, Samsung Electronics Corporation Limited, Qantas Airways Limited and World Vision Australia) is evaluated using a specially developed model which focuses on six corporate governance related factors that will enhance corporate governance quality. These factors are: * Whether the company’s board is structured to add value, * Whether the board is remunerated fairly and responsibly, * Whether the board is able to recognise and manage risk, * Whether there is timely disclosure and safeguarding of the financial report’s integrity, * Whether there is adoption of a stakeholder approach to corporate governance, and * Whether the firms increase transparency and accountability of the directors. For each organisation, we have identified the main stakeholders relevant to their operations. This analysis would be of relevance to stakeholders as it attempts to shed light into the corporate governance systems of the organisation and help stakeholders evaluate the companies. Having applied the model to each of the organisations, it is found that there is no one organisation that can satisfy the model completely. However, some organisations performed better in certain factors than others, and there are clear indications that some organisations have better overall corporate governance. All of the organisations’ corporate governance can benefit through improvements such as greater transparency of the board, higher safeguarding of the financial report’s integrity, better structuring of the board to add value and more focus on adopting stakeholder approach to corporate governance. In our analysis, Qantas Airways Limited has performed the best in our corporate governance assessment model, followed by World Vision Australia, Daimler AG, Samsung Electronics Co. Ltd and China Mobile Limited.

INTRODUCTION
There has been increasing debate over whether stronger corporate governance is needed to mitigate problems that can lead to corporate collapses. The renewed interest in corporate governance is partly sparked by the recent Global Financial Crisis whereby the public witnessed many major organisations failing and requiring “bailouts” to continue operating. Numerous guidelines and recommendations like the ASX Corporate Governance Principles and the Sarbanes-Oxley Act in U.S. have been established to strengthen the quality of corporate governance. However, it is often difficult to define and quantify ‘good’ corporate governance due to the lack of benchmarks and criteria available to assess corporate governance. In this report, an attempt to assess and compare 5 different organisation’s corporate governance was done using a specially developed corporate governance assessment model that consists of 6 major factors accompanied with a total of 29 measures. By no means is this a comprehensive model for evaluating organisation’s corporate governance, but it can provide stakeholders an easy way to evaluate and assess firms. 1. ASSESSMENT MODEL

Factor| Description| Reason for choosing Factor| Y/N| Comment| Structure the board to add value| Are there any rules or recommendations regarding the composition of the boards?| The board facilitates and ensures that director's duties imposed by law are carried out effectively and adds value to the company. They are the interface between...

References: Samsung Electronics Co Ltd 2009, Disclosure Control Policy, viewed 8 May 2013,
Samsung Electronics Co Ltd 2012, 2012 Sustainability report, viewed 9 May 2013,
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