Research Corporate Governance: ASX and Selectfit

Corporate Governance and Selectfit
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Institution Affiliation
Corporate Governance and Selectfit
Introduction
The ASX corporate governance council released some principles and recommendations that are to guide corporate governance which advocates for accountability, credibility, and transparency among managers. The principles and recommendations are aimed at ensuring that corporate governance is on the right track.
ASX and Selectfit
Among the recommendations are the risk committees, which are tasked with overseeing risk. The ASX additionally recommends that if an entity does not have a risk management team, it should disclose that fact and the processes it employs in overseeing the risk management framework. Since the Selectfit organization is an international company, it has been equipped with the necessary tools for assessing and dealing with risks. In the case of any emergency, the risk assessment team can be called in to deal with the issue (Damiani, Bourne, and Foo, 2001 p, 4). Alternatively, the team can see the risk before it happens to become a disaster and draw the necessary steps to deal with the issue before it explodes becoming a disaster. These teams are essential in every organization as they are tasked with assessing risk and the damage caused. In some cases, they are responsible for cleaning up after a crisis or fixing the situation. Selectfit should ensure that these teams are available and working within the law. If the company fails to acknowledge the importance of these teams, it is planning to fail since the teams can foresee danger and tell the possible damage it will cause. They can additionally approximate how much will be required to fix the mess in case it happens or how it can be avoided. The fitness industry in Australia in increasingly becoming popular due to high levels of obesity (McMalcolm, 2013, p, 155)
Another recommendation in the ASX is the sustainability of risks. It states that a company should disclose if it has any material exposure to environmental, economic and social sustainability risk. If it does, it should explain how it plans on dealing with the risk. This is important in that it aids investors in making long-term decisions. Economic sustainability is the ability of an enterprise to keep on operating at a specific level of economic production over a long period. Environmental sustainability is the ability of a company to run its operations without compromising the health of the ecosystems (Greenwald, 2015, p, 89) . Social sustainability is the ability of an organization to continue with operations in a manner that does not contract socially acceptable norms or does not go against the culture of the surrounding community. The Selectfit organization recognizes the importance of these sustainability measures. As for the environmental sustainability, the company should ensure that it protects the environment. Since it I not a goods production company its effects on the environment are minimal. As for the social sustainability, the organization should make sure that it does not act in contradiction to the norms of the surrounding community. Failure to this the company risk having a negative attitude from the community and this translates to low customer turnout henc...