CORPORATE GOVERNANCE PRINCIPLES TELSTRA CORPORATION

In overall, this report aimed to determine whether Telstra Corporation adhere to the set standards for those firms trading on the ASX and also finding out of this corporation is worth to invest in. Table of Content Introduction and overview……………………………………………………………. The implication of ASX Corporate governance principles……………………………… Risk assessment…………………………………………………………………………. Financial ratios ………………………………………………………………………… Bibliography……………………………………………………………………………… Introduction an overview Telstra Corporation commonly known as Telstra is an Australian corporation that trades in the telecommunication and media industry. It is an Australia’s leading telecommunication and technology company that offers a range of communication services. The telecommunication corporation has been evolving and changing the names over time. The company adopted acquisition as its growth strategy in that it has acquired many small telecommunications and health confirms.

Its mobile business section is Australia’s largest mobile service provider in both coverage and subscription (Telstara, 2017, p1). It operates GSM and 3G which is branded as Next G telephone networks and also it holds about half stakes in the in the 3G network infrastructure. It is the largest telecommunication firm provider of the fixed-line service. Owing to the fact that Telstar is among the listed company, it implies that this company is among the hopeful firms and to maintain its chances of trading on the ASX, it must cautious with the matters to do with management and always conduct strict monitoring of every business operations. On implementing this principle, Telstra has clear roles of the management board and the senior management.

The form is very much aware that the relationship between the senior company management and the management board is very important because the major decisions are made by these two levels. Therefore, the two leadership levels have distinct roles and responsibilities and members of each level perform their duties without interfering with the duties of the other level (Telstara. 2017, p. com. au, 2017, p1). Thus, the board members must be a focused and competent individual who have the interests of the company at heart and always striving to increase the assets of the company. The implication of this principle to Telstra is that it must ensure that the board members are sharp and proactive on matters to do with the company. If the board is inefficient, it has to be done away with and replaced by members who can steer the company forward (Auasb.

Safeguard integrity in corporate reporting:-This [principle focuses on the management of the books of the accounts. The principle holds that companies listed on the ASX should prudently manage their books of accounts (Asx. com. au. 2010,p. com. au, 2017, p1). The auditing team goes through the books regularly and points out the mistakes that might have been committed for rectification. The company also ensures integrity in reporting by deploying highly qualified and talented individuals in matters to do with accounting and auditing. The management of this company also does not interfere with the work of the accountants and auditing (Telstara. The implication of this principle to Telstra Corporation is that it has to adopt and maintain ethical behaviors and operate responsibly through conservation rather than polluting the environment.

In implementing this principle, Telstra Understands that most of its products and services are technological and thus, they may have some effects on the environment. The company is “going green” meaning that it is operating sustainably in that it is making products that are friendly to the environment. Some o parts of the products are decomposable (Telstra. com. It is against the corporate governance principles for the company to delay publishing its financial records and also concealing them from investors (Auasb. gov. au. 2009, p1). The implication of this principle to Telstra is that it should commit itself disclosing its financial records to whoever is interested to look at them and also should be publishing their financial records in a timely manager after the end of its financial year.

In implementing Telstra always hold an annual general meeting where all the security holders meet and discuss on various matters concerning the organization (Telstara. 2017, p. The company also pays dividends to the security holders. Recognize and manage risks- This principle required the listed companies to recognize the risks they face and also put in place the mechanisms of managing these risks. Knowing the risks that you face is important because it helps in evading the uncertainties that could befall the organization (Asx. 2010,p. The implication of this principle top Telstra is that the company should ensure that each employee is remunerated the amount commensurate with the tasks and effort. Telstra is implementing this principle by always increasing the salary and wages for every employee after a short period (Auasb.

gov. au. Market Overview-The telecommunication market is growing, therefore firms like Telstra have good opportunities for growth as long as they have high-end products that would excite the consumers. Nevertheless, an interesting thing to note is that consumers usually rush for products and services that are of high technology for convenience purposes. Thus, business firms in this market are striving to come up with quality products to satisfy the desires of their customers. This implies that the market is dynamic hence riskier for firms that do not embrace innovation. Regulators- Telstra as a telecommunication company is exposed to several regulators. au, 2017, p1). Implementation of all these strategies requires reasonable huge resources which if the strategies are not implemented properly, the firm risks running at a loss.