16 Feb

Corporate Governance is still overlooked in much of Australian Business

It is little wonder that Prime Minister Theresa May has targeted reform to Corporate Governance reform...stakeholders are demanding change!

There is still a huge void in the understanding of the essential steps a company officer needs to take to exercise compliance and sound Corporate Governance in Australia. 

 

When you require more regulation to walk onto a building site than to run a company with many (potentially thousands of) employees, there is a strong argument that the existing regulatory system for company directors is insufficient. It is well documented that half-heartedly attempting or ignoring compliance within the risk laden Australian corporate governance environment is an ill-conceived strategy. 

 

Seeking further understanding of the environment he had faced 5 years earlier, Bretts 2016 research uncovered considerable oversights in current literature and support which academia described as follows:

 

This project has identified an interesting gap in the corporate governance literature. The collection and triangulation of interview, survey and secondary data could add in-depth, critical and reflective knowledge through analysis and discussion to the corporate governance literature.

 

Over four months of research, interviews and surveys with the leaders of Australian industry followed and significant gaps in delivery of compliance throughout much of corporate Australia was confirmed. 

86% of respondents had no formalised training before assuming the responsibilities of a MD. 

This oversight exposed major flaws in awareness and regulatory compliance – and substantial personal risk to the individual. In Australian corporate law, it is prudent to employ sound governance but it is essential to exercise complete compliance. 

A reactive approach to compliance and corporate governance shows poor leadership and is very bad for business. 

In the absence of any formalised awareness for SME leaders; Ethical Leadership and Compliance Australia (ELCA) was born. Its focus as the name suggests: 

To provide leaders with an ethical pathway to excellence in compliance and corporate governance. 

What you do in the first 30 days as a director will define you as a leader...

 

"...compliance and governance should be lauded, proudly communicated and never viewed as burdensome. However, it should also be transparent, accessible and form the core of every company’s culture."

Brett Flower

Brett’s paper ‘A review of Directors liability for Australian based company officers: A novice Directors Induction. ‘was the final project for his Master of Corporate Governance research degree. It was awarded a high distinction. 

To receive your copy – please register here.

Posted in General by Brett Flower
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