Corporate governance of Westpac Banking Corporation AUSTRALIA Essay

Corporate governance of Westpac Banking Corporation AUSTRALIA - Essay Example Corporate governance has become the buzz word and has accomplished in drawing a good deal of public interest because of its visible significance of corporations and society with respect to economic healthCorporate governance is a complex concept as it deals with many different economic happenings Looking at a broader perspective corporate governance can be regarded as a set of procedures, customs, guidelines, rules and regulations affecting the way a corporation is planned, directed, governed or controlled. It also includes the relationships among the stakeholders and the aims for which the corporation is managed. The main stakeholders involved are the shareholders, management and the board of directors. Along with employees, suppliers, customers, banks the environment and the community as a whole. As mentioned earlier corporate governance is a complicated and multi-dimensional subject. Corporate governance deals with issues of accountability and fiduciary duty, making sure all the guidelines and mechanisms are implemented for the safe guard of shareholders. Another focal point is to achieve optimize economic through corporate governance to emphasize on shareholders welfare.Westpac Banking Corporation was founded in Sydney, Australia, in 1817 as the Bank of New South Wales and merged with the Commercial Bank of Australia and changed its name to Westpac in 1982. Today, it is a leading provider of banking and financial services in Australia, New Zealand, and eight Pacific island nations. It is Australia's oldest bank and offers general banking services to retail, commercial, and institutional customers and provides investment management and insurance. Westpac has strived to reach the position today it has by focusing on such issues only establishing a strong relationship with the stakeholders. "Corporate governance is a field in economics that investigates how to secure/motivate efficient management of corporations by the use of incentive mechanisms, such as contracts, organizational designs and legislation. This is often limited to the question of improving financial performance, for example, how the corporate owners can secure/motivate that the corporate managers will deliver a competitive rate of return." [www.encycogov.com, Mathiesen [2002].] Companies are scored based on specific issues such as board composition, management remuneration, accounting treatment and transparency. [https://www.shareanalysis.com/asp/glossary.asp]. Westpac has always focused upon promoting corporate justice, precision and self-actualization. The corporate governance structure followed at Westpac specifies the proper allocation of rights and responsibilities of the board, managers, shareholders and other stakeholders and properly defines the rules and procedures for corporate decision making. Increased competition, stringent regulatory standards, and continuous change in customer wants and demands have put pressure on global banking companies like Westpac to develop creative and cost-effective business strategies. Some of the examples of how corporate governance is implemented at Westpac are as follows: (http://www.westpac.com.au/internet/publish.nsf/Content/WISEWP+Protection) SSL connection Internet Banking system uses a technology called Secure Sockets Layer (SSL). This creates a secure connection between the customer and the Westpac. This is a highly beneficial technology developed by Netscape, Microsoft and RSA Inc that is supported by most browsers. Encryption Westpac has employed precise security mechanisms to guarantee that the client's information and accounts are secured. The latest encryption technologies have been used to protect the data when being sent over the internet. Westpac Internet Banking uses certificates which generate security "keys" to verify the connectivity with Westpac banking. Every stakeholder has an account with all the details. As information sent between the browser and the Bank is encrypted, it makes it