Models of corporate governance

ASSIGNMENT

MODELS OF CORPORATE GOVERNANCE
a. abstract
b. short description of model and coverage
c. main criteria and concept
d. conclusion

ABSTRACT
Corporate governance models refer to the system and structure by which companies are directed and controlled. These models outline the roles, relationships, and responsibilities between different stakeholders in a corporation, including shareholders, board of directors, management, and other relevant parties. The primary objective of corporate governance is to ensure that the company operates in an ethical and transparent manner while taking into account the interests of all stakeholders. There are several corporate governance models, but the most widely recognized and practiced are the Anglo-American model and the Continental European model and Japanese model. However, this paper is going to investigate the Australian Corporate Governance Model by outlining its overall description and coverage, discussing the main criteria and concept and as well as conclusion of this model in the end.
SHORT DESCRIPTION
The foundations of modern Australian corporate governance practices were established in the 1980. The main focus during this period was on increasing the accountability of directors and executives, particularly in response to high-profile corporate failures. In 1991, the Australian Securities Exchange established the Corporate Governance Taskforce, which later evolved into the ASX Corporate Governance Council. The council was formed to promote better governance practices and issued its first set of corporate governance guidelines in the mid-1990. The early 2000 were marked by high-profile corporate collapses, such as HIH Insurance and One.Tel. These events triggered significant reforms in corporate governance, leading to the release of the Corporate Law Economic Reform Program (CLERP) proposals in 2002. The 9^th CLERP introduced important changes to director duties, financial reporting, and disclosure obligations. The ASX Corporate Governance Council periodically reviews and updates the corporate governance principles and recommendations. The most recent significant update occurred in 2019 with the release of the fourth edition of the principles. It introduced new guidelines on board diversity, corporate culture, and environmental and social governance factors. In recent years, there has been a growing recognition of the importance of incorporating environmental, social, and governance (ESG) considerations into corporate governance practices. The Australian market has seen increased focus on sustainability reporting, responsible investing, and stakeholder engagement. Overall, In Australia, the corporate governance model primarily follows the Anglo-American or shareholder-oriented approach. The corporate governance framework in Australia is primarily based on laws, regulations, and guidelines that aim to protect shareholder interests and ensure accountability. The Australian corporate governance model aims to balance the interests of shareholders, provide transparency and accountability, and create sustainable value for all stakeholders. It's important to note that the coverage of the Australian corporate governance model is dynamic and subject to updates and revisions to reflect changing market dynamics, emerging trends, and evolving governance practices to maintain best practices in corporate governance.