Strategic Management and Business Policy - Assignment Example

Corporate governance is a system of rules in which corporation’s is directed as well as managed. It entails a balance between the interest of the stakeholders in accompany which is inclusive of shareholders, the executives, the shoppers, traders, government, sponsor and the society. Because corporate governance provides the structure for achieving the objective of the company, it includes nearly every scope of management from planning as well as the internal control to performance as well as corporate disclosure[Nor99]. Regulatory influences on public companies in Australia in relation to corporate governance Most of the appropriate source is corporation Act 2001 published by the Australian Securities and investment commission (ASCIC), the listing policy of the ASX, a corporation’s constitution and common law. The principal legislative foundation of corporate governance e in Australia is the corporation Act. The policy supplement the company’s Act. ASIC manage the corporation Act and publish regulatory manuals that deals with corporate governance matters. The guides are recommended, setting out comprehension of ASIC as well as its explanation of appropriate legislation. Corporations are guaranteed by the authorized listing rules of ASX, normally considered as listing rules correspondingly[Dav131]. The common law entails rules concerning corporate governance. Furthermore, numerous regulation entails provision for liabilities affecting corporations or the company directors income Ares that impact governance systems, specifically where failures to execute enough systems to avoid damage is a basis for accountability. The approach is taken in the regulation of competition as well as consumer’s safety, ecological safeguard as well as occupational health and safety. Whether Santos provides good governance About Santos Santos limited is an Australian company dealing in petroleum and gas exploration founded on 18th March, 1954. Santos is the acronym for the South Australia Northern Territory Oil Search. It comprises of four business segments which are Western Australia and Northern Territory, Asia Pacific, Gladstone LNG (GLNG), Eastern Australia. It also deals in the production, treatment and also the marketing of fossil fuel products such as natural gas, naphtha, condensate and liquefied petroleum gas. Other key area of specialization of this company is the transportation of crude oil from oil reserves on the continent[Int07]. Whether Santos provides good governance From the analysis of the annual report for Santos limited, it can be depicted that the company is dedicated to operating in a sustainable environment by constantly improving its economic, social and environmental performance to handle the long term business risk as well as take advantage of opportunities as the business seeks to grow and provide returns to shareholders. Environment On carbon print, the company is dedicated to improving fuel due to the fact that the operation uses almost 95% of the carbon prints hence it is important to reduce carbon emission. On water, waste and Noise pollution, it can be observed that the strategic measures undertaken by Santos, the company is dedicated to being environmentally reasonable that centers on reducing the resource usage, reducing the impact of noise pollution on the society by placing more concern on life of the people living with the business operations for Santos. The community The company is just not proving services but as well it is the driver of key economic activities as well as a responsibly member of the Australian community. The company is working diligently with the society so as to guarantee that there is mutual benefit between the society and the Santos limited to ensure that the going concern for the business is effective[Ala01]. b. Triple Bottom Line Accounting Triple bottom line accounting provide an assurance that the company must cover as well as disclose the following three key sustainability compliance in their annual reports; the environment, the community and the financial. Indication in Santos Annual report on triple bottom line account The society Santos limited is engaging in community development as observed in the sustainability report. The company sponsored programs and also engagement with direct representative from the society is eminent in the annual report of the company. In this regards, it can be observed in the annual report that the company is committed towards community development. Engaging the shareholders The Santos Corporate governance is key to ensuring that creation, safety as well as growth of shareholders wealth. The Board upheld and controls the Santos preserves the utmost level of corporate ethics. Water management and quality The accessibility, excellence and preservation of natural resources are significant for the success Santos limited. The company must aspire to supply development that reduce water consumption and contribute optimistically to catchments that operate in. this is depicted in the sustainability report for Santos limited, c. Company performance Yes the company is performing well as depicted in the annual report. It is apparent that Santos realizes a growth in net profits after tax in the financial year ending 2015. Furthermore, the investment in corporate social responsibility depicts a strong correlation with the net profit. As the company invests more in the sustainability compliance each financial year as observed in the annual report, the amount of reported net profit grows[Gle11]. The company can be observed to be performing in terms of asset growth, from the statement of financial position, it is apparent that the company asset keeps on growing each financial year which implies that the return on asset is improving which would have positive impact on net profit margins. The company capital is growing as well which is an implication that the capital base is growing permitting for company portfolio diversification, reduction of risk and growth in return on equity which leads to improved business performance for Santos limited[Pat13]. External factors that might impact the performance of Santos Limited The external factors such as the adoption of the latest environmental safeguards affects the business performance for Santos limited since, the company operates in an ever changing fierce competition and thus adaption of the correct situation might further affect the performance of the company. Santos limited operates in a hazardous environment and thus they are being affected by the string regulation. The effect of inflation had impact on price of oil which lead to significant effect on financial performance for Santos limited since, the cost of operation went high leading to a decline in net profit margin and hence the decline in business performance in terms of profitability[Gle11]. Question two How Instagram failed to comply with these theories in deciding to change its terms of service In appraising this case with concern to the ethical theories, we will examine how Instagram failed to adhere with the theories and thus the practice was not satisfactory, moral this when concluding to make changes on their terms and conditions of services. Instagram main motivation was to increase profits and is a depiction of the individualist point of view to seek the interest principally. As much as Instagram, did not depict profits once users realized that their privacy was under violation. The case depict a defilement of the ethical theory of individualism since when the changes to the privacy policy was made, Instagram lost many users as well as profits declines. According to John Stuart Mill  Utilitarianism is classified as ethically right or wrong merely when the impact are substantial that an individual may wish to depict the agent obliged as well as insisted, to act in the likely manner, The utilitarian may consider that Instagram option s of changing the terms and condition of services was not advantageous to users or to the company. This is because, the main objectives of Utilitarianism is to capitalize satisfaction for both parties engaged. Instagram was not in a position to bring contentment to its users or to the company. The case is not in compliance with the ethical theory of Kantianism since Kant explained that individual must do what is right since it is right to be deeming ethically principled[BHi13]. According o Kant, firm should not mislead or reserve information from its consumers. As results, Instagram made changes to its terms of privacy subsequent to gaining to 100 million users. The users were not informed of the changes and the defilement of their privacy may go undetected if it had been made public by the broadcasting houses. The verdict made by Instagram, to withhold information from stakeholders as well as to treat them as just a means of profit unavoidability led to users losing confidence in the company as well as it was damaging in terms of finance to their business operations. For the virtue theory, the ethical values that will be appraised are the; courage, trustworthy, temperance, as well as fairness. In some instance, Instagram decision of changing their terms and condition was brave since they risked their public image in efforts to improve profits. Anytime public image such as Michael Zuckerberg consider making some changes in their services face the risk of scrutiny and thus the option was bold and courageous for Instagram. Nevertheless, the virtue theory of courage provides that the options should be courageous as well as stand up for what is right. In this regards, Instagram was not courageous since they didn’t stand up for the right of users in their privacy. Instagram was as well not trustworthy since they considered expressing the terms of services in a manner that is perplexing with intent of concealing information as well as being dishonest. The option as well as dared Instagram virtue of temperance since the chief executive officer did not justifiable take into consideration the impact of the decision to change the terms and condition of services on their business which led to loss for the company and the shareholders. Lastly, Instagram did not take into consideration the justice in the verdict since it was unjust to employ intricate legal language in their new terms and condition of service. In this regards, their intent was to maximize profits from the user’s lack of comprehension which doesn’t consider the virtue of justice. My appraisal of the case is that is disquiet of my privacy as well as the privacy of other users on Instagram[Ala01]. This is not an ethical approach to treat clients and it is improper approach to making profits for their company. I may not need my photo to be posted anywhere else’s other than I want. This case remind me that nothing that is posted on the internet is private as well as even services such as Instagram and Facebook are no secure as well such that our photo are at risk of insecurity threats[Pat13]. My action plan for Instagram that it should publicly say sorry for the changes they made to their service s. if Instagram has an intent of making more profits from their services, they may bring in new premium paid membership that users might pay for when they selected. The paid membership may depict some new features for the App that might benefit those make an option of being a member. This might create more income to the company devoid of having to cheat tis users. Instagram has some special chances to take advantage of its own app, Facebook as well as twitter as tool to reach out the lost members as well as justify that they have concluded on recanting their provisions changes in the privacy statement. Joining and leaving social network is simple and the society entails high profiles superstars that may approve the confession and gain the trust of users once again[Nei90]. As much as Instagram, did not depict profits once users realized that their privacy was under violation. The case depict a defilement of the ethical theory of individualism since when the changes to the privacy policy was made, Instagram lost many users as well as profits declines. According to John Stuart Mill  Utilitarianism is classified as ethically right or wrong merely when the impact are substantial that an individual may wish to depict the agent obliged as well as insisted, to act in the likely manner. Am of them opinion that Instagram might take advantage greatly from reaching out to the superstars users such as Anderson cooper, that had concluded on leave due to change as well as persuade that superstars to re-join the Instagram service and openly recommend the new Instagram. This plan may prove Instagram an opportunity to recuperate members as well as user’s confidence and avoid future issues of deceitfulness as well as suspicion of their services[Gle11]. Question three 1. The purchase of freehold shop at $176000 should be included in the balance sheet as current asset and $60,000 as non-current liability since, it is a debt obligation to repay. ii. Goods bought by Transom for $16000 should be included in the balance sheet as cash since, this is the amount realized on purchase goods. iii. The delivery van should not be included in the balance sheet since, the asset is not in the company premises at closing of the financial period hence, and it is not accounted for till 12th January 2012. iv. The shop fitting for $3,000 is a capital expenditure and should be included in the balance sheet of the company as capital since; it was bought before the company was opened. V. the acquisition of Ford falcon should be included in the balance as drawing of $7000 since, the company uses the company to purchase the car which is deem as drawings. vi. Cash register of $400 should be included in the balance sheet as lease rentals. vii. The cash register of $1200 must be included in the balance sheet as non-current assets viii. Bank overdraft of $13000 need to be included in the balance sheet as current liability. ix. Seat belt should be included in balance in inventory sub heading as returns outward with a value of $12000 X. the staff wage of $1300 and the PAYG tax of $120 should not be included in the balance. Reference list Nor99: , (Bowie, 1999), Dav131: , (Dave Williamson, 2013), Int07: , (International Federation of Accountants, 2007), Ala01: , (Malachowski, 2001), Gle11: , (Martin, 2011), Pat13: , (Patricia Werhane, 2013), BHi13: , (Hiriyappa, 2013), Nei90: , (Warren, 1990), . Read More