Due to theunending commitment to high standards of corporate governance, Commonwealthbank has an established corporate governance framework which aims towardsperformance and sustainability of the bank in terms of the customer base, thequality of products and services as well as the revenues and the profits. Thisgoes a long way in protecting and managing to secure the interests of thevarious stakeholders such as the investors, shareholders as well as the variousowners and customers of the bank (Bragg, S.
M. (2013). .
One of themethods being employed by Commonwealth bank is the use of regular reviews onthe corporate governance arrangement and the activities in order to be able tocreate an analysis and be able to evaluate development in terms of the marketpractice, the various regulations as well as safeguarding the stakeholderexpectation. This process has been adopted in the company where the variouscorporate governance and principles as published by ASX Corporate GovernanceCouncil have been keenly followed in order to adopt the various outlinedgovernance principles and practices.Another keygovernance mechanism adopted by Commonwealth bank is the shareholderengagement, this is evident where the bank has been able to view theshareholders as its owners and have been able to adopt communication as key inthe engagement of the shareholders. The bank has ensured that the informationbeing provided to the shareholders is timely and correct and that two waycommunication with the shareholder in order to facilitate feedback provision isalso put in place in the company. The key communications with the shareholdersinclude the annual reports and the corporate responsibility reports whichprovides updates on quarterly, half and annual updates as part of thedisclosure policy for the shareholders.
Annual general meeting are also held inthe company in order to have face to face engagement with the shareholders andto enhance the relationship and to be able provide insights regarding thevarious concerns as raised by the shareholders (Morris, D.2007) Also throughthe board composition and performance, Commonwealth bank has been able todelegate the day to day management of business in the bank to the CEO throughthe bank board of directors. Nevertheless, the board still continues in the dayto day monitoring of the management to ensure that the shareholder’s interestsare protected while maintaining the corporate social responsibility. Commonwealthbank has also been able to face and tackle the various issues and problems thatarise in the company through the incorporation of committees that focus onspecial and specific issues that arise in the company.
The committees are oftenconstituted and established by the board as standing committees in order tostrengthen the board’s oversight responsibility to the company. Some of thecurrently existing standing committees in the Commonwealth bank include;· The nominations committee.· The audit committee.· The risk committee· The remuneration committee.The companyalso utilizes sustainability to risk management by having a policy throughwhich sustenance of the Commonwealth bank will hugely borrow from the variousrisk management plans and procedures put in place through the management andthe board. The risk management plan for Commonwealth bank includes therecognition of the unique financial needs of the clients; under thesustainability of Commonwealth bank, the clients formed one of the keystakeholders and hence the risk management plan also sees to it thatanticipation of the needs and the various corporates businesses and institutionthat depend on the bank in terms of their banking needs are served adequatelyand to their full satisfaction (Commonwealth Bank. 1998).
. TheCommonwealth bank also sees to it that the services provided are with the bestchoice of segment in order to maximizeon the client’s choice of the distribution channel as well as delivery in themost economical as well as sustainable way for the customer. Some of the otherstrategies adopted by the bank as reflected in both the sustenance plan as wellas the risk management plan include being skilled, authorised, equipped as wellas the differentiation of the services provided and last but not least is theuse of flexible technology, scale and risk management in order to ensure thatthe services are of superior value.Through theuse and adoption of an environment policy in Commonwealth bank, the bank isdedicated in ensuring that the well-being of the people is maintained as wellas the businesses and the community in general. The group is able to monitorthe environmental impact through:· Monitoring and regulating thegreenhouse emission by the various businesses under the bank.· Monitoring and ensuring reducedwater usage.
· Developing processes to monitorthe environmental impacts that come about due to the activities under thebank’s supply chain.Under the CSRvoluntary disclosure in the Australian listed firms, the disclosure sees to itthat the various firms are able to communicate about the corporate social responsibilityand that communication is viewed as a channel that can enable a greatercorporate transparency and engagement with the various stakeholders. Professionalismunder corporate responsibility has been achieved through management function, buildingof the individual capacity and capability.
In general, under the listedcompanies in Australia the CSR voluntary disclosure varies through the factthat the companies under the disclosure aims towards:· Health and welfare in the societyas key to the development.· Stakeholder expectation andsafeguarding of their interests.· Compliance with the applicable lawboth locally and internationally.
· Integration all throughout in theday to day activities in the organizationConclusionIn conclusion the accounting theories and the various policiesplay a crucial role in the day to day running of the various activities ingiven companies. The financial reporting and the various asset valuations donein a company are fully guided by the standards and the policies designed in thecompany to ensure that given frameworks in the procedures are adopted and usedin the day to day reporting and valuations of the various components of thefinancial reports.