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Governance Case Study

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Governance Case Study
Impetus for Corporate Governance –
Corporate governance in Australia was introduced in 2003 when the ASX Corporate Governance Council introduced the “Principles of Good Corporate Governance and Best Practice Recommendation”. The governance regulations introduced by Australia’s ASX came as a result from investors’ concerns in the quality of corporate governance, following the collapse of some major companies, such as HIH, Harris Scarfe, Ansett, and OneTel. Since the guidelines were introduced, Australia’s ASX has issued revisions and updates that were designed to improve corporate governance in Australia and help avoid further collapses of major Australian companies.
In contrast, corporate governance guidelines were introduced in South Africa in 1994, with the publication of the “King Report on Corporate Governance”. The introduction of corporate governance guidelines came as a result of democracy taking hold of South Africa and the country’s readmission into the community of nations and the world economy. The King Report was designed to help align the interests of corporations and its many stakeholders, including individuals, companies, and society.
The United Kingdom introduced corporate governance guidelines in 1992, with the Cadbury Report on “The Financial Aspects of Corporate Governance”. The guidelines were introduced partly because of the financial situation in Europe, which brought to light the public’s concerns over the standards for financial reporting and accountability. The Cadbury Report sought to clarify the responsibilities of key executives in corporations and introduce a code for Governance in the United Kingdom.
The Most Comprehensive Governance Guidelines – One of the goals of South Africa’s King Report was to provide corporate governance guidelines that advocated the interests of a wide range of stakeholders.

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