BHP Billiton Limited Essay Example | Topics and Well Written Essays - 1000 words

BHP Billiton Limited - Essay ExampleThe concept of corporate giving medication asshole be defined as the procedures which are used to direct and control an organisation in alliance with its determined mission and vision. The extended post of corporate governance further exhibits a proper social organisation specifying the delegation of rights as well as the responsibilities bestowed upon the participants of an organisation including its board members, lower and middle take managers, stakeholders, shareholders and other interest groups (OECD 2005). The corporate governance comprises the three basic factors. In this context, it provides with adequate transparency in its finale-making process. Transparency in turn provides scope for right that entails the responsibilities of the decision makers within an organisation. It also provides accountability for the conservation of the concern with respect to the shareholders interests as well as the commitment of the organization towards its stakeholders. Indeed, accountants and other financial decision makers play a vital role in determining organizational effectiveness to mitigate such(prenominal) concerns through high degree of ethical commitments. Thus, it can be stated that the accounting theories and the corporate governance are interrelated as the underlying function of the corporate governance is to control organizational activities and the practice session of the corporate resources (Clark 2011). Based on this understanding, the objective of the paper reflects the corporate governance practices of BHP Billiton Limited (BHP) to alleviate the risk related to the corporate factor with further reasons to such conventions. Areas of Corporate Governance in BHP Billiton Limited to Alleviate the Risk of the Corporate Failure The corporate governance system practiced in BHP entails the approaches to provide the observe that has been created on a long term basis complying with a high-quality governance framework ( FRC 2012). The telephoner believes that the governance must not be limited to the Board, merely it must be spread within the organisation. Through its governance system, BHP aims to foster a culture that values as well as awards the ethical ensample prevailing in the organisation along with the personal and the corporate integrity and the standard to have respect deciphered aptly for its stakeholders on the whole. The company herewith aims to establish an appropriate Code of Business Conduct for the employees, the suppliers and the customers constituting a major proportion of its stakeholders group. The application of these approaches related to the governance further attempt to foster the long-run goodwill of the company playing a major role to alleviate the risks of the corporate failure on the basis of accounting discrepancies (BHP Billiton 2012). Notably, the corporate governance structure of the company entails the diversified perspective of the Board of Directors. The stru cture in BHP comprises of the shareholders, the Board of Directors, the functional committee, the Chief Executive Officers and the group management committee. The framed structure helps the company to