Due is evident where the bank has been

Due to the
unending commitment to high standards of corporate governance, Commonwealth
bank has an established corporate governance framework which aims towards
performance and sustainability of the bank in terms of the customer base, the
quality of products and services as well as the revenues and the profits. This
goes a long way in protecting and managing to secure the interests of the
various stakeholders such as the investors, shareholders as well as the various
owners and customers of the bank (Bragg, S. M. (2013). .

One of the
methods being employed by Commonwealth bank is the use of regular reviews on
the corporate governance arrangement and the activities in order to be able to
create an analysis and be able to evaluate development in terms of the market
practice, the various regulations as well as safeguarding the stakeholder
expectation. This process has been adopted in the company where the various
corporate governance and principles as published by ASX Corporate Governance
Council have been keenly followed in order to adopt the various outlined
governance principles and practices.

Another key
governance mechanism adopted by Commonwealth bank is the shareholder
engagement, this is evident where the bank has been able to view the
shareholders as its owners and have been able to adopt communication as key in
the engagement of the shareholders. The bank has ensured that the information
being provided to the shareholders is timely and correct and that two way
communication with the shareholder in order to facilitate feedback provision is
also put in place in the company. The key communications with the shareholders
include the annual reports and the corporate responsibility reports which
provides updates on quarterly, half and annual updates as part of the
disclosure policy for the shareholders. Annual general meeting are also held in
the company in order to have face to face engagement with the shareholders and
to enhance the relationship and to be able provide insights regarding the
various concerns as raised by the shareholders (Morris, D.2007)

Also through
the board composition and performance, Commonwealth bank has been able to
delegate the day to day management of business in the bank to the CEO through
the bank board of directors. Nevertheless, the board still continues in the day
to day monitoring of the management to ensure that the shareholder’s interests
are protected while maintaining the corporate social responsibility.

Commonwealth
bank has also been able to face and tackle the various issues and problems that
arise in the company through the incorporation of committees that focus on
special and specific issues that arise in the company. The committees are often
constituted and established by the board as standing committees in order to
strengthen the board’s oversight responsibility to the company. Some of the
currently existing standing committees in the Commonwealth bank include;

·        
The nominations committee.

·        
The audit committee.

·        
The risk committee

·        
The remuneration committee.

The company
also utilizes sustainability to risk management by having a policy through
which sustenance of the Commonwealth bank will hugely borrow from the various
risk management plans and procedures put in place through the management and
the board. The risk management plan for Commonwealth bank includes the
recognition of the unique financial needs of the clients; under the
sustainability of Commonwealth bank, the clients formed one of the key
stakeholders and hence the risk management plan also sees to it that
anticipation of the needs and the various corporates businesses and institution
that depend on the bank in terms of their banking needs are served adequately
and to their full satisfaction (Commonwealth Bank. 1998). . The
Commonwealth bank also sees to it that the services provided are with the best
choice of segment in order  to maximize
on the client’s choice of the distribution channel as well as delivery in the
most economical as well as sustainable way for the customer. Some of the other
strategies adopted by the bank as reflected in both the sustenance plan as well
as the risk management plan include being skilled, authorised, equipped as well
as the differentiation of the services provided and last but not least is the
use of flexible technology, scale and risk management in order to ensure that
the services are of superior value.

Through the
use and adoption of an environment policy in Commonwealth bank, the bank is
dedicated in ensuring that the well-being of the people is maintained as well
as the businesses and the community in general. The group is able to monitor
the environmental impact through:

·        
Monitoring and regulating the
greenhouse emission by the various businesses under the bank.

·        
Monitoring and ensuring reduced
water usage.

·        
Developing processes to monitor
the environmental impacts that come about due to the activities under the
bank’s supply chain.

Under the CSR
voluntary disclosure in the Australian listed firms, the disclosure sees to it
that the various firms are able to communicate about the corporate social responsibility
and that communication is viewed as a channel that can enable a greater
corporate transparency and engagement with the various stakeholders.

Professionalism
under corporate responsibility has been achieved through management function, building
of the individual capacity and capability. In general, under the listed
companies in Australia the CSR voluntary disclosure varies through the fact
that the companies under the disclosure aims towards:

·        
Health and welfare in the society
as key to the development.

·        
Stakeholder expectation and
safeguarding of their interests.

·        
Compliance with the applicable law
both locally and internationally.

·        
Integration all throughout in the
day to day activities in the organization

Conclusion

In conclusion the accounting theories and the various policies
play a crucial role in the day to day running of the various activities in
given companies. The financial reporting and the various asset valuations done
in a company are fully guided by the standards and the policies designed in the
company to ensure that given frameworks in the procedures are adopted and used
in the day to day reporting and valuations of the various components of the
financial reports.

 

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