Corporate governance in Associated British foods is being discussed in this paper. Stewardship theory for corporate governance is also being analysed and discussed for proper understanding here. Role and responsibility of the board of directors in Associated British foods is also being described properly here.Moreover their role in developing overall corporate governance in Associated British foods is also to be seen here in this paper, making it the most comprehensive resource for those who are seeking business dissertation help.
The stewardship theory describes the stewardship projects and helps in increasing the wealth in the organization by their performance. The stewards are generally the manager and heads that work in the organization so that they can earn a good revenue. These stewards are only satisfied if the organization attains the profit and gains a good success in the business. The stewardship theory can be described by the following diagram:
This stewardship theory is a trustful one that helps in motivating the employee as well as the organization to achieve their success in a short time. In Associated british foods the stewardship theory is applied so that good corporate governance can be processed in the organization and high business ethics can be maintained in the organization. These stewardships are said to be important for the Associated british foods for achieving the long term sustainable performance of the organization (Rao, M., 2018). This corporate governance in Associated british foods includes the board of committee, employees, Annual reports, shareholders services, risk management and various others.
Leadership is being defined by the help of this corporate governance in Associated british foods. The board of committee met here for proper planning and investment analysing. They enable the risk to be accessed and the manage those with the proper resources that are available. The chairman, director, executive directors are seen to be leading the organization as they are a part of the board of committee in the organization.
According to the corporate governance the key activities shown are as follows:
Strategy: A regular update in the planning and strategy are made by the board of committee in the Associated british Foods The annual reports are being focused here in this case. Employees are being seen to be managed properly so that development can be managed properly.
Financial performance: The regular reports are enough here in order to analyse the financial performance of Associated british Foods (Maitah et al. 2016). The group budgets are being analysed here properly for the year 2019 and comparing those with the last few years. Moreover the banking and treasury are being managed properly here in this organization.
Risk: Business effects of the political changes can be easily seen in the Associated british Foods sales and business (Shevtsov,2017). The gender equality are given in the organization and are analysed properly so that such scenarios regarding diversity would not arise in future.
Corporate responsibility: the Human resource and the senior managers are to play an important role in this part so that proper management can be seen in the organization. Each and every employee and member of the board of committee are provided with proper responsibility so that they can perform their task in an ethical manner.
Corporate governance is possible to define the environmental policy and the responsibility for the Associated british Foods. The adverse effects on the environment are being promoted here so that proper use of resources can be proceeded easily. Opportunities are being made in order to reduce the greenhouse gas and other environmental problems (Shrives, 2017). They understood their responsibility of providing safety and nutrition to their customers. Their values are to respect everyone's dignity, progression with collaboration, rigorous working and applying the integrity in their work.
The board of directors has established a nomination committee that is present in the organization. This term has replaced the earlier used terms for the nomination of the committee. These committees are successful in leading the boards for appointment and recommendations for the board. A regular look at the infrastructure, organizational structure and the whole business is being provided by this board of committee here. Company requirement and the present business evaluation is possible by the help of this board's committee and the decisions they recommend for the future of the organization. The senior managers and the heads are the important part of the board of committee in decision making and strategy formation so that successful organization can be formed here easily. In Associated British foods the chairman, Chief executive, Finance Director, Non executive director, independent non executive directors are important part of this board of comite. They play an important role in forming and climbing big ladders for successful business orientation in Associated British foods. These boards of Associated British Foods have a good experience and a depth knowledge in this industry (Keay,2019). These boards of committee are involved in forming a balance in the skills and the experience in the committee so that challenges and milestones can be faced easily.
A progressive refreshing performance in the organization is generally maintained by these committees. The review making process and the recommendation can be implemented for the implementation of boredom in diversity. The leadership needs of the group are being analysed extensively by these boards of committee in Associated British foods. Thus the competency in the marketplace is possible by the help of this leadership skills and management process. The capability and capacity that is required in the organization is being analysed here by the boards of committee. Approval of candidates on their merit based is only allowed by these boards in Associated British Foods (Matenga, C.R., 2017). They select candidates that are available to devotee for Associated British foods and then appointed as full time executive ones. The terms and conditions are required to be formatted by these boards of comite here in Associated British Foods so that a proper benefit can be formed for the employees working. Moreover recommendation for any vacant positions in committee or in the whole organization is possibly filled by these boards of committee after certain meetings.
Annual review and report is formed by them so that the role of chairman, senior directors and others can be formed in keeping account of the sufficient time for their duties. These committees have two procedures that are followed in Associated British Foods and those are executive and non executive ones. In the non executive process a short listing procedure is being followed so that they can be formed as first priority in the selection process. While in the executive process the chairman and the chief executive produces a proper list for the candidates to be selected for the firm. Corporate governance is easily maintained and a successful phase for the business can be gained by the board of committee here in Associated British Foods. Strategy management and the proper decision for the company is possible only by these committees that are available in the Associated British Foods (Sulle, E., 2020.). A good revenue generation and the goal setting for earning huge profit is completed by these groups in Associated British Foods. But a debate can be seen that these boards of committee use their power in a negative manner in organization, whether it is in the selection or the training of the proper candidate. Sometimes using the position in a negative way can be easily seen by them in Associated British Foods. But still the good working and successful gain in the organization is possible due to these boards of committee only (Business-humanrights.org, 2019).
A strong and ethical governance is presented by the Associated British Foods. This was an encouragement to the long term view for the organization and for the investment in the future as the business grows. This corporate governance is successful in defining the leadership, quality strategy, financial report, risk and other profit that are seen in the organization in the past year. According to the corporate governance report the Associated British foods is diversified in terms of their international foods and the sales were around E15.1 billions. The employees were found to be around 138000 and are seen to be operating in more than 58 countries. Profit gains were around E1421 millions, the profit before tax were around 1406 millions, the gross investment was E837 millions and earnings per share were 111.1p .
A diverse business group was formed by the help of this corporate governance in the year 2019 and now a successful one in marketing and different countries. Four group wide values are presented by the help of this corporate governance and those are remuneration, boards, employees and the dividends (Portaldagestaoderiscos.com, 2019).
According to the corporate responsibility they have a purpose of providing a safe and nutritious food to the customers. Customer satisfaction is the priority to them so that a large number of customers can be attracted towards them. According to the chief executive Associated British foods enjoyed a profit of 14% and a gain of around E12 millions for the last year. An impressive margin is possibly seen in the US and the other countries for the sale. An 8% increment in their profit was introduced nasd around 14 new stores were started in Europe and USA. In comparison to the last few years a good growth can be seen in the year 2019 and it is high among all the past few years (Boudreaux, 2019). The non key financial growth was also good such as the growth of number of employees, tonnes of food produced, number of countries in which they operated, the selling rate, health and safety report and thus the corporate governance can be seen to be beneficial one in Associated British Foods.
A progress can be seen in following
The growth in the company can be seen as compared to previous years. The profit is seen to be high as compared to others in past few years that is 1421. Exceptional items are found to be 79 in number which was 0 for earlier years. Then profit less losses are 4 that means loss is lower than past few years. The dividend per share was also seen to be 46.35 which was higher than earlier years.
Asset and resources were around 703 in last year and Net current asset computes to be 1820 and the shareholders also increased in the organization. Current assets are found to be 5314 and the capital that was gained was 2508. The partnership could be seen to be growing and the business also grew and gained a good name. This corporate governance worked as a backbone so that the organization could maintain their corporate culture, diversity and the relationship along the whole organization (Yu, M., 2019). The corporate report could be seen to be a positive one and also possess a good growth as compared to the last few years.
By the corporate governance report it can be found that Associated British food has gained a good name and fame in terms of business. As discussed their board of committee are effective in creating good corporate governance and promoting successful business in the organization. Corporate governance balance sheet for the year 2019 is an essential factor that can help in understanding the fact that Associated British foods grew their business in the year 2019 as compared to the other years.These are only possible by the board of committee that are present in the organization. They are successful in bringing investors and good partners for the company so that business can be processed properly. They have to focus on different sectors in the world also so that performance analysis can be done easily (Sealy et al. 2016). The financial statements are created in a positive format so that business gains can be made easily by the help of these board of committee. The chief executive, chairman and others that are attached to this board of committee are playing an ethical role in promoting the business so that business can grow in the local and global world. These boards of committee have a positive contribution on their people, supply chain and in the business environment. They selected proper employees for their organization and thus found out the best out of them. They valued the integrity, social and the responsibility for their customers.
Collaboration work and contribution together without focusing on the culture and diversity are seen, which is promoted by the help of those boards of committees. The four values are being initiated and being followed by this board of committee which is respecting everyone's dignity, progress with collaboration, acting by integrity and pursuing rigorously in business here (Clapp, J., 2019). The board of committee is responsible by first defining the risks and milestones in the organization, then the third party or the partners are to be looked at by them throughout in the organization and also engaging with the stakeholders so that management can be done properly. The supply chain and the infrastructure management is being processed by them properly so that business could be gained easily. Following and supporting their goals are one of the aspects that is preceded by these committees in Associated British Foods.
Generally three of the committees are present in Associated British Foods and those are the nomination committee, remuneration committee and the audit committee. These three have different roles and duties for developing the organization.
Nomination committee:
They are to make recommendations and important business appointments.The skills and the financial reports are being analysed by them so that the required changes can be recommended by them. Then the proper planning is being made for the business to gain a good response in the market and also recommending the senior management so that proper skill balance can be made with a good progression. Leadership needs the efficiency so that the organization can compete and is also analyzed here in this case (Abf.co, 2020).
Audit committee:
The financial statements of the groups are mandatory to be looked out properly for monitoring and making formal announcements in the organization. The board of outcomes are being checked by external audit and explaining its contribution to integrity of financial reporting. The review process and the challenges are made for accounting policies and judgements.
Remuneration committee:
They are responsible for the remuneration for the executive directors and the chief executive that are present in the organization for their commision, compensation and payments. Most of the decisions that are made here are in the scope and terms of the current director and the policy that are approved here in the case (Finance.expertjournals, 2019).
Thus it can be concluded that corporate governance is essential one for the organization to carry out their task and the business aspect properly. Associated british Foods are involved in serving their customers and value them so that they can enhance their business properly. The role and responsibility of the board of committee in Associated british Foods is being seen in this paper properly so that the negative and positive aspect of these can be seen here properly. The contribution of these board of directors in Associated british Foods has been defined properly so that overall corporate governance can be understood properly.
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