Doing business in the global context today involves three things; one completion that is moving fast, pressure on companies to improve their growth and financial performance, and the diligence to expand into new markets globally (Hill, 2008). Equally, the regulations guiding businesses have increased both in number and in complexity (Vogel, 2010). Today, the Regulatory authorities in different countries share information amongst themselves more frequently, and they are more aggressive with the enforcement of the regulations and also adamant about their expectation of business conduct accountability all over the world. Managing the bribery and corruption risk is mainly about trust as well as the corporate behavior (Wu, 2005). Corruption and
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The company should put in place measures of reviewing and authorizing so that the company’s financial position is presented in a factual and truthful manner, devoid of any deceit. The company audit committee should do a review and consideration of all company accounts. Also, measures should be put in place to ensure that the external auditors. It should start by the board establishing an audit committee and the company CEO, as the chief financial officer, should state to the board that the financial reporting of BHP Billiton presents a true and fair perspective in the different aspects of the financial position of the company. The audit committee presents an efficient mechanism than that of the board when focusing on the issues relevant to the verification and safeguarding the company integrity of BHP’s financial …show more content…
Appropriate remuneration policies will ensure that the company attracts directors and employees that are talented and motivated and effectively enhance the company performance (Ting & Muluan, 2012). The relationship between the company performance and its remuneration should be understood and the investors’ understanding of the policies underlying the remuneration of the company’s executive remuneration enhanced. Disclosure of the executive compensation promotes the spirit of transparency, consistency, and clarity of the company reporting such that it becomes difficult to conduct dubious deals within the company.
In conclusion, BHP Billiton needs to adopt the recommendations of this report if the company wants to avoid the corruption and bribery related malpractices. As earlier mentioned, managing the bribery and corruption risks is mainly about trust as well as ethical behavior. The measures outlined in this report aims to promote trust and the ethical corporate behavior within BHP Billiton so that the vice of bribery and other corruption tendencies can be better understood by the employees of the company, and therefore effectively
The company should put in place measures of reviewing and authorizing so that the company’s financial position is presented in a factual and truthful manner, devoid of any deceit. The company audit committee should do a review and consideration of all company accounts. Also, measures should be put in place to ensure that the external auditors. It should start by the board establishing an audit committee and the company CEO, as the chief financial officer, should state to the board that the financial reporting of BHP Billiton presents a true and fair perspective in the different aspects of the financial position of the company. The audit committee presents an efficient mechanism than that of the board when focusing on the issues relevant to the verification and safeguarding the company integrity of BHP’s financial …show more content…
Appropriate remuneration policies will ensure that the company attracts directors and employees that are talented and motivated and effectively enhance the company performance (Ting & Muluan, 2012). The relationship between the company performance and its remuneration should be understood and the investors’ understanding of the policies underlying the remuneration of the company’s executive remuneration enhanced. Disclosure of the executive compensation promotes the spirit of transparency, consistency, and clarity of the company reporting such that it becomes difficult to conduct dubious deals within the company.
In conclusion, BHP Billiton needs to adopt the recommendations of this report if the company wants to avoid the corruption and bribery related malpractices. As earlier mentioned, managing the bribery and corruption risks is mainly about trust as well as ethical behavior. The measures outlined in this report aims to promote trust and the ethical corporate behavior within BHP Billiton so that the vice of bribery and other corruption tendencies can be better understood by the employees of the company, and therefore effectively