Impact of Internal Corporate Governance †MyAssignmenthelp.com

Question: Discuss about the Impact of Internal Corporate Governance. Answer: Introduction: In the recent years, it is crucial for all the organizations to manage the learning activity governance, legal requirement and to utilize the technological advancement in order to gain the competitive advantages (Turban, E., Whiteside, King Outland, 2017). Governance is a process to maintain the business operation transparently. The legal requirement is to keep the legal norms properly during business operation. However, the information technology system leads the organization to store and manage the huge data of the consumers. On the other hand, entrepreneurship is a process to take the risk in a business to gain profit. In the context of Build On Construction Private limited the e-commerce development and knowledge management is important to expand their business. However, in the context of every business knowledge management among the staffs is necessary as it enables them to share information, build proper communication with their co-workers. Knowledge management in the project causes staff innovation through utilizing the information technology (Wang et al., 2017). On the other application of the e-commerce system, Build On Construction private limited will be a beneficial approach for them as it helps them to enhance their online selling and B2B selling. On the other hand, the company can gather demographic data through the social media and web contacts in the e-commerce system. Governance is a process that is designed to provide assurance regarding the accountability, transparency, law, empowerment, and stability in a business practice (Ararat, Black Yurtoglu, 2017). On the other hand, governance is an institutional environment in which the stakeholders of the business can interact. As for example, UNDP, World Bank, and OECD refer that governance is the power of the authority in a country to manage the political, economic and administrative factors. However, there is a good relationship between the governance and the management. In the context of Build on Construction private Ltd. the governance sets the high-level goal and the policies based on which the management of such organization run their business towards the direction that is set by the governance body. Governance observes the management and performance of the organization to ensure that an organization is an operation based on the public interest and their stakeholders those are associated with the organizational mission (Rowley, Shipilov Greve, 2017). Hence, based on this Build on Construction private Ltd can build their goal and implement their mission and strategic vision. Another function of the governance is direct the management of an organization to gain their desired outcomes and the rules of the governance provide assurance to the organizations that they are working ethically and legally (Dias, Rodrigues Craig, 2017). However, this factor of Governance makes Build on Construction private ltd more responsive in their operation. Fundamental styles of the Corporate Governance Corporate Governance is associated with the policies, rules, relationship, laws, and regulation in the context of the different business organizations (Albassam et al., 2017). Unitary board of governance consists of executives and the managers that are responsible to manage the corporate information and data. However, if the company supervisory board and the management board then this organization is categorized under the dual board. Such dual board will enable the Build on Construction private Ltd to maintain a balance between the chairman and CEO. Lack of direct contact between the executive of two boards resists the information flow in an organization (Uyar, Gungormus Kuzey, 2017). Partnership management is another element of the corporate governance and it consists of the top management and highly involved board. However, there is a supporting work between such two groups is necessary for context of Build on Construction private Ltd as both groups are involved in setting the str ategies and policies and the board members informed the top management about the execution of policies. Corporate governance includes internal, external and independent audit mechanism (Katmon Al Farooque, 2017). The internal mechanism involves in the controlling of the corporation operation in the context of Build on Construction private Ltd. This control method will enable the organization to monitor their activities and the progress in order to take better actions for their business. However, carrying out a smooth operation within the organization is the prime focus of internal mechanism (Goranova et al., 2017). The external mechanism involves in managing the external stakeholders of Build on Construction private Ltd and control the business outside the organization. Therefore, the independent audit is the process of observing the financial statement of the organization in order to understand the financial performance of the organization. This will enable the employees and stakeholders of Build on Construction private ltd to understand the financial stability of their organization. According to Australian Stock Exchange Corporate Governance Council, it is crucial for the business organization to make a listed entity within the proper time and balanced the disclosure (Coffee Palia, 2016). Therefore, Build on Construction private Ltd, needs to respect the rights of the security holder by giving them proper information timely as it will protect their business from legal harm. Establishment of the risk management framework is a vital principle corporate governance. Hence, Build on Construction private ltd needs to develop risk management framework and to monitor it properly in order to save their employees from any injury during their work. Impact of the Governance and Law on Build on Construction private Ltd The public international law enables the business organization to operate their business outside the country (Zhu Tang, 2016). The business organizations also have to maintain the private international law and domestic law while operating their business. In the context of Build on Construction private ltd, they need to follow the Partnership Act 1958 while working with partners and this law enables such company to maintain a contractual law that will be followed by the each partner to enhance the business profit. On the other hand, Corporation Act 2001 and Australian securities and investment Act 2001 both are categorized under the company law (Kumar et al., 2017). Build on Construction private ltd needs to follow such legal requirements as it enables the managers of this organization to understand their duties and responsibilities properly. Stakeholder protection is the major concern of Corporate Governance law. This law enables the business organization to maintain the right of th e shareholders. Build on Construction private Ltd can treat their shareholders equally by maintaining this law. Every company needs to be complying with the corporate Governance law as in compliance with law may lead the organization to give the penalty (Albassam et al., 2017). According to the Crimes Act 1994, any in-compliance with the Governance corporate law affects the business of an organization. Anti-corruption legislation Act is vital for any corporate sector to reduce the corruption in their business. Bribery is one kind of corruption that destroys the market of a business and associated with the terrorism (Wang et al., 2017). A large number of companies think that without paying bribe they will not able to get the international contract. Hence, by following the Bribery Act 2010 the Build On construction private limited can achieve the international transaction fairly as it will aside them from the serious consequences related to the crime of bribing. Incompliance with the anti corruption law may lead the organization to face legal obstruction and it may affect the growth and reputation of the business. The Foreign Corrupt practice Act 19977 includes the compensation and the injunction against the business that fails to comply with the legal norms of corporate governance. Other consequences may occur for the construction organization as for example, loss of government contracts may lead the Build On construction private limited to face legal issues in their business. The corporate offense includes the anti corruption management as it acts as the defense mechanism (Dias, Rodrigues Craig, 2017). In the context of Build On construction private limited, they should maintain the anti corruption law in order to carry out a fair business in the international market. However, proper compliance with the corporate governance law and the legal requirements this organization will be able to make a fair and transparent business by protecting the value of their shareholders. Conclusion The above piece of work focuses on the rules and regulation of the corporate governance and the necessary legal requirements in the context of Build On construction private limited. However, this organization needs to follow the all legal norms associated with corporate governance to carry out a fair business provision. Risk management in the workplace is a prime area of the corporate governance as for the constructions company it is the major area to protect their employees during their work. On the other hand, maintenance of the anti corruption law is necessary for such organization as any incompliance with the anti corruption law may lead the company to face legal challenges that will affect their business. 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