Analyse the corporate governance statement of NewsCorp - Essay Example

With the help of the board which ought not have less than three members, it is expected that the director of the company hold office for only a year (NewsCorp 1). The director also needs to be elected through a majority vote and must enjoy their independence. Under the guideline of the corporate governance, NewsCorp indicates that board meetings are mandatory and reviews of the previous meetings must be done at all times (1). Executive sessions of the non-executive members of the board must also be held without the interference of the board members.

Through the board meetings and headship, NewsCorp indicates that it becomes easy for the company to run its affairs (1). The board leader also feels free to manage the affairs of the company as an independent person; thus, effectual consultations and communication with the concerned stakeholders. It is also recommended that the members be keen whilst selecting their leader as leadership determines the kind of performance from the company. Additionally, the board is charged with the responsibility of coming up with various committees to assist the running of the company’s affairs.

The committees include the Audit, the Nominating and Corporate Governance; and the Compensation Committees (NewsCorp 1). The committees involve independent directors who operate under Exchange Act and NASDAQ listing standards (NewsCorp 1). It is important to note that these committees have been given the mandate of retaining, deciding and terminating the fees by the consultants and other legal advisors based on their discretion. For instance the compensation & succession committee reviews on compensation issues of the CEO based on their performance as well as his/her compensation.

This is done by assessing the potential of the existing members in the company, and who would be the best suitor in the company’s next management (NewsCorp 1). In terms of ethical standards of the company, the corporate governance does not hesitate to specify its requirements from its members. NewsCorp indicates that the Board of Directors of the Company are keen to ensure that its members act in utmost integrity and respect to all employees in the company regardless of their affiliation (1).

With the adoption of the Standards of Business Conduct, the board ensures that all the employees comply with the code of conduct. The company can therefore be argued to comply with the utmost standards of ethics. However, compliance with the ethics would not be achievable if the company did not have a chain of communication. The board then ensures that all the members have access to the ethics code and that they understand its contents well. For instance in relation to conflicts in the company, the members are aware of the procedures to follow, the same case applies in terms of property information and interaction with other persons such as government officials (NewsCorp 1).

Employees are also conversant with what needs to be done in the event of harassment and safety of the workplace (NewsCorp 1). The CEO and financial officers are also not exempted from the code of conduct. Through its board, the Company felt the need for protecting its whistleblowers. However, stockholder communication has also been provided for, since it allows for effective communication with all the stakeholders of the company (NewsCorp 1). This