BUA5CG Corporate Governance Take Home Exam Semester 2 2018 Total marks: 30 Due date: 8 pm 3rd November 2018 · Please read the attached five (5) media articles: · ASX200 boards near 30pc gender target:...

Business Law
Question 1.a: Summarizing the articles and their relevance to corporate governance
    The Peter Swan article reflects the importance of experienced shareholder directors by considering the issues faced by a single independent director of the firm. In this regard, the author found that the independent decision of directors or owner of the business might be loss full in case of swing trade because it does not consider the interest of overall stakeholders. However, by considering the interest of different stakeholders, it becomes easy for an organization to cater the requirement of various parties and improve the business image along with the long-term survival with the increased rate of return. At this juncture, the independent directors are punished if the swing trade makes the loss and vice-versa. In this context, the experienced stakeholders play an essential role in the success of the business because corporate social responsivities are also fulfilled with the help of involving all the critical stakeholders in the decision-making procedure.
Nonetheless, the corporate governance practices show that it is crucial for the business to integrate all related activities and focus on ethical dealing effectively. At the same time, the CG practices indicate that the roles and responsibilities of management should be clear so they can be held responsible for the decision taken in their area. By considering the importance of corporate governance and its role in the success of the business, it is vital in the current article that the owner should consider the views of other stakeholders; otherwise, it is their sole responsibility to bear their part of risks and ensure the well-being of other related parties.
    According to James Frost, the payment of bank executive is much higher because their pay does not revise descending and the consequent from the bad management. In this regard, the data collected through the survey on the APRA regulated firm and found that the surveyed firms poorly meet the requirement of remuneration policies. This unconcern about the remuneration policies negatively affects the risk management and financial soundness of the company because the significant part of liquidity goes waste in paying unnecessary high wages to the employees. Apart from this, the study of the survey also shows that the junior employees faced more degradation in the payment in comparison to the senior executives because the top executive protects themselves from the adverse outcome of the pay revision. It reveals that the accountability of the senior and junior executive for any risk in the firm is different which foster inappropriate behavior for the junior executives and reduces the trust of executives towards the organization. This article is linked to the corporate governance practice of the evaluation of the performance of making the principled compensation decisions. This evidenced that unfair wage or compensation policy has a negative impact on the reputation of the business and it determines the unethical conduct. Therefore, the article suggests that every firm must submit the detailed banking accountability regime (BEAR) for showing the accountability of the different level of executive conclusively.
Questions 1.b: The Stakeholder theory related to the summarized articles
    As per the above discussion, the experienced stakeholders are good for the business because their experience enhances their decision-making capabilities through which they take effective decision for the business and helps the company for surviving in the critical situation (Jones, Wicks and Freeman, 2017). On the other hand, the ineffective decision through the...