Faculty Of Business : Corporate Governance And Social Responsibility

1.1. Introduction:

In the contemporary world, the importance of the corporate governance is rapidly increasing. The organizations are using the factors to build up the growth and sustainability strategies. Corporate governance is a system that provides the rules and practices of the employees and organisational management. These policy and strategies promote processes of the operations so that the organisation can control the efficiency. Corporate governance links the interests of the stakeholders of the company. Generally, the stakeholders denote the management, customers, shareholders, investors, suppliers, government, and the area of operation. In the current study, the corporate governance strategy is outlined on the basis of Primus Telecommunications, which is an Australian company (Benn & Bolton, 2011).

Corporate Governance Assignment

1.2. Company profile:

Primus Telecom is founded in the year 1994 in US telecommunication market. Primus Telecommunications Group is having the globalised segment for meeting the demand of the organisational products. The organisation is a telecommunications service provider and offering the customers with the latest facilities of the telecommunication. Primus Telecommunications Group are facing the intense competitive market as it operates in different part of the world. Many other telecommunications network providers seem to be offering more facilities in the lower rate (Schein, 2010).

Primus serrated to get into the Australian telecommunications market to get the opportunity of the attraction of the population of Australia. The company started their business by subsidising the M2 Telecommunications of the existing Australian market. The company set up headquarter in the Melbourne area of Australia which is the one of the most populated areas of Australia. Primus initially provided the facilities like the fixed, cellular phone, and broadband services to the customers of Australian segment. Primus Telecom got the license of the telecom service providing in Australia during the year 1997 and accordingly they were started to provide the facilities all around the Australia. Primus links the major cities of Australia like Assignment Help Melbourne, Sydney, Adelaide, Brisbane, and Perth with the help of a well-integrated fibre network (Primus.ca, 2014).

Primus is offering the services to provide the help of the customers with security, Network Hosting, Business Continuity, and Server Administration Services. This facility attracts the customers of the corporate group, business houses and the normal customers. Voice Services is another speciality of the service that comprises of the Long Distance, Local, Dedicated Voice Circuits, Hosted PBX, Conferencing, and VoIP calls. The organisation is facing lots of the challenge regarding the up gradation of the facilities of the telecommunication. They are involving the service as per the reliability issues (Husted & Allen, 2009).

1.3. Main corporate governance disclosures in the company’s annual reports:

The organisational management Primus Telecommunications is having proper strategies to meet the effective corporate responsibilities. These strategies will help in terms of the getting the sustainability and growth in the competitive Australian market.

Primus Australia maintains the corporate governance strategic management to increase the vigorous environment of the organisation. They need to maintain the sustainability of the external and internal environment they are dealing. Primus Telecommunications is facing the adverse effect of crisis of the global economy as they are having the major branch in USA. They are having the stakeholders all around the world. Major raw materials and technological support is adopted from the USA headquarter of the group. Therefore the main control is focussed in the USA branch (Fowler and Hope, 2010).

Primus Telecommunications maintains the commitment to provide corporate governance framework in terms of the meeting the stakeholders. The management employs transparency of the data and the transaction recorded in the reports of the financials and strategies. They provide more accountability and truthfulness in terms of the meeting the shareholder’s quarries. A proper structure is maintained as per the team members, customers, and stakeholders. This structure enables the communication and the allocation of the strategies well in the level of the hierarchy (Berkhout, 2009).

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Corporate governance policies of the Primus Telecommunications are justified and checked in annual mode. This monitoring process increases the development of the Principles and Recommendations so that the organisation can be having more growth and sustainability. These process improves the allocation of raw materials as well as mitigates the risk of inventory or facility development. ASX Corporate Governance Council is controlling the corporate governance strategies adopted by the organisation.

ASX Corporate Governance Council is maintaining some standard practices to maintain proper corporate governance strategies and practises in the telecommunication facility providing an operational process (Bendixen & Abratt, 2011).

Principle 1: the authority to place concrete fundamentals of the responsibility and the other factors maintenance. This process will be maintaining top to bottom hierarchy. This process starts from the management make them aware of the facts that will reduce the misunderstanding among the employees and the management rather the communication gap is mitigated through this type of governance.

Principle 2: ASX also maintains a structure of the employee base, as well as the board, is involved to add value in the operational process. Board of the Primus Telecommunications includes five directors among whom four acts as non-executive directors (Blowfield & Frynas, 2011).

Principle 3: The structures also endorse the ethical and accountable decision making so that growth and sustainability can be earned. In the Australian telecommunication scenario ethical decision making will attract the customers and increase the profitability.

Principle 4: reliability is very well maintained in financial reporting of the organisation so that the stakeholders are well supported in the time of decision making regarding the investment and selling of shares.

Principle 5: the process also maintains a proper time frame of the reporting and measurement of the implied strategies and financial reports. Fair revelation of the condition of market share and practises will increase satisfaction and support of the stakeholders (Acutt & O’Riordan, 2009).

Principle 6: These governance processes also values the shareholders rights by giving them the chance of the electing the directors, setting up the strategies and the different type of the action planning so that the organisation can be abler to meet the effective in terms of the sustainable growth.

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Principle 7: also the corporate governance strategies identify the risk associated with the operational plans or telecommunication service providing and manages and mitigates them to get the optimum rate of the growth and sustainability.

Principle 8: ASX also promotes Primus Telecommunications to provide proper remuneration as per the market condition and demands. This process enhanced the rate of the efficiency of the employees as they are more satisfied with the remuneration structure (Grenville, 2010).

1.4. Key issues faced by the Primus Telecommunications in developing the corporate governance performance obligations:

In terms of the allocating the corporate governance in the operational process of the Primus Telecommunications many barriers can be followed. They faced the problem as the changes were made in the responsibility structures of the organisational employees when the acquisition by M2 Telecommunications Group Ltd is done. The employees remained biased about their roles and regulation. Ownership rights have been changed due to the same merger or acquisition.  Many of the stake holders lose their position and many gained (Aras & Crowther, 2010).

Transparency issues were met while the management of the new organisation is not ready to provide the transactional data to the general fewer share holders. Structural system of the Board got a major restructure as well as many skilled employees are not provided with the appropriate roles and regulations. Moreover the strategies of the corporate governance will get an improper dimension. Internal and external controls got the different dimension as of the change and globalisation factors (Mullert, 2010).

In order to get the allocation of corporate governance issues the organisation will be facing the regulatory enforcement in different set up. These types of problems are faced in different mean like capacity enforcement issues of the parties. The interests of suppliers and the capital users are balanced in terms of maintaining stakeholder’s interest provisions. Business costs are well negotiated and listing methods are well compatible. In many time telecommunication industries face the scarcity of capable directors and management level.

Market enforcement related challenges can be faced in the penetration or merger in terms of market share and growth. The Primus Telecommunications have faced the barriers regarding the shareholder roles and importance from the management of the new organisation. The lack of interest of shareholders at present regarding the growth and sustainability will increase the rate of biasness of the strategies and roles (Banerjee, 2011).

1.5. Potential ethical considerations impacting on the Primus Telecommunications and the telecommunication industry:

The following ethical factors need to be implemented by the Primus Telecommunications in terms of making the corporate governance more effective. Moreover these strategies will help in getting the growth and sustainability.

Health and Safety of the employees and the stakeholders:

Ethical consideration in the telecommunication industry relies on the health and safety matters. The employees can face the hazardous equipment that can cause the negative impact in the health issues. Also in the time of the broadband connection and voice calling the section the customers are requiring of the safety regarding the information safety, privacy issues. Therefore the organisation needs to make the operational process secure for both the part. For the security issues of the employees they need to get the proper and safe machineries and for the customers data protection and virus screening should be allocated (Rungeler, 2010).

Technology in the process:

Technology in the telecommunication industry is one of the most important for the growth and facility issues. The management of the Primus Telecommunications need to allocate proper strategies to get the implementation of the technology in the operational process. Moreover the technological features need to be outlined to the employees and the customers to get the accurate usage and the feasibility of success. Moreover the rate of the success underlines in the technological impacts.

Transparency of the records and data:

While making the record of the business performance and the data, openness and transparency needs to be maintained by the management. This type of factors attracts the investors to be more satisfied and the allocate funds in the organisation. Telecommunication industry seeks for the immediate development of the operational process with the mean of the allocation decision making support (Want, 2010).

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Proper Working Conditions as per the industry requirements:

Telecommunication Companies are having the globalised nature of work as well as they are required to support the customers form different parts of the country. Therefore the strategies like multiplicity of the management and training the new employees will create certain rate of the employee satisfaction.

1.6. Theoretical framework supporting the nature of the company’s CSR disclosures:

There are mainly two type of theories that helps the organisation in terms of the setting the CSR strategies. The Triple Bottom Line and Shareholder vs. Stakeholder Concept are the major theories that the Primus Telecommunications can employ in CSR discloser.

Triple Bottom Line denotes the CSR as the intersection of the social responsibility, environmental stewardship, and economic growth off the particular area (Carroll, 2008).

On the contrary the Shareholder vs. Stakeholder Concept denotes that shareholders main interest is to gain the dividend from the organisation as a part of investment. Stakeholders will be looking for the wale fare of the organisation.

1.7. Recommendations and conclusions:

In the current study of the corporate governance in the case study of the Primus Telecommunications outlined the impacts and the requisites of the organisation. Moreover the Corporate governance strategy needs to be developed and modified in the terms of the contemporary issues. Further recommendation can be provided to improve of the corporate governance of the concerned telecommunication organisation.

  1. Comprehend the Australian Corporate Governance Code in the process.
  2. make sure that governance of the process also relies on the board of the organisations
  3. The management needs to prioritise on medium and long term goals rather than the short terms goals.
  4. Non-executive directors’ needs to appointed with proper skills and qualities.
  5. Information policy must be effective.
  6. Corporate leadership must be with out any gender issues.
  7. Anti-corruption measures must be effective enough to get the attraction of the stakeholders and safety of the operational process.
  8. Make the standard of corporate governance as per the countries the Primus Telecommunications is operating specially the Australian segment.

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