The company AUB Group Ltd. started its operations in the year 1985, under the company name of Austbrokers Holdings Limited. AUB group limited offers underwriting, broking and risks services to the customers in Australia (AUB Group, 2018a). The firm further manages and operates insurance broking networks, which are represented by approximately 10 businesses. AUB Group limited also renders client solutions and risk management for the brokers, clients, insurance companies, and customers in the international market. The firm was well known as Austbrokers holding limited and formally changed its name to AUB group limited in November 2015. The company is listed in the Australian stock exchange. It shows more than 1 million client policies, approaches via 135 partners businesses across more than 425 locations in Australia. AUB has employed approx. 3500 employees who are serving clients successfully and carefully. By managing across key areas of insurance and risk, AUB group limited is providing support to clients to safeguard an excellent and stronger future. It has been analysed that AUB group limited provides services, products and ample of solutions to the customers that help in protecting them from financial burden, damage and harm. In today’s competitive world, the firm is boosting its profitability and outcomes with minimizing the risks and challenges of the market.
The services of the firm are designed to help the partners and manage safely, handle the business more effectively and efficiently and attain better outputs for the customers globally. After the various studies, it is reported that the company has a strong and proud history and the employees are dedicated towards the attainment of long-term mission and vision. The culture is supported by excellent four core values include genuine, partnership and relationship driven, aspirational, and resourceful. At AUB group limited, the board of directors is accountable for the strong and dynamic corporate governance of the consolidated entity. The board monitors and analyses the business and affairs of AUB group limited on the behalf of the various stakeholders. To ensure conformity with the principles and rules the firm has set board committee and number of policies and procedure such as constitution, communication policy, whistle-blower policy, securities trading policy, and risk management policy. An effective and dynamic leadership is appointed by the company to conduct business activities and operations at international level.
It is analysed that partners are one of the unique and effective competitive benefits for AUB group limited. In today’s competitive world, the company is investing money in rendering ample of opportunities for partners to survive and grow. AUB is further committed to provide good returns and worth to the various stakeholders. Providing high quality service is one of significant approaches for AUB group limited that helps the company to compete with rivalries in the international market (AUB Group, 2018b). The main mission of AUB group limited is to provide insurance services to the customers at appropriate prices. Along with this, the vision of the company is to provide a safe and stronger future to the clients with maximizing the profitability and outcomes. The organization employs talented, skilled, and qualified personnel to carry out the business functions in a hassle free manner.
The composition of the board of the directors of the AUB group has been provided as follows. The company has five directors namely, Mark Searles, who is also the Chief Executive Officer and the Managing Director of the company. He has been associated with the company since the year 2013. The next director of the company is Robin Low, who is associated in the capacity of the non- executive director. The next non- executive director is Ray Carless. Paul Lahiff, and Cath Rogers are also the non-executive directors of the company. Thus, the enterprise has four non-executive directors. David Clarke is the Chairman of the company. Thus, the group has a CEO, who is also working in the capacity of MD, 4 non-executive directors and a Chairman. The current Chairman was formerly the non-executive director of the company. The following table displays the corporate structure of the
The Chairman of the company accorded the importance of the acts undertaken by the Royal Commission into Misconduct in the Banking and Financial Services Industry (AUB Group, 2018d). He stated that investigations like above sends a strong message of importance of the accountability and the governance framework for the entities operating in the financial services sector. The appointment of the non-executive directors is considered as a measure of strengthening the decision-making and the risk management of the entity across the various networks, as stated by the Chairman inn his report. The Chairman also stated in his report that the company in the passing by year has improved its operations on the lines of the technology and innovation upgrades, leadership training and people management, facilitation of underwriting arrangements, and more such activities. These are primarily viewed as the means of aiding the succession planning and the development of connections with the clients in the digital world. In addition, the company has also focussed on inculcating the company values and culture across the various operations, the same has been highlighted in the company purpose statement and is followed by the Board and Executive teams, and also while conducting business through the partner enterprises (AUB Group, 2018d).
The CEO and the Managing Director Mark Searles also highlighted the importance and the aim of the collaborative activities undertaken by the entity with the shareholder partners (AUB Group, 2018d). The CEO also provided a brief glimpse of the three disciplines that are followed in the company while the conduct of the business. These are firstly, the adherence to the business model, where partners share the success, secondly following the operating model to leverage the size and scale of own business as well that of the partner businesses, and lastly the strategy which aims at risk management, advice and consultation services to the clients (AUB Group, 2018d). The CEO in addition highlighted the significance of connectivity, which is essential for future long-term organic growth in business areas and drives client retention, longevity, and ultimately, profitability for the entity.
The Chief Executive Officer (CEO) has responsibility for the implementation of the Company’s Remuneration Policies. The entity follows the ASX Listing rules for the provision of the remuneration to its directors, according to which the members of the company decide the aggregate remuneration of the non-executive directors (AUB Group, 2018d). With the expansion of the pool of the non-executive directors, the company members decided the aggregate remuneration to be $ 850000. The board has determined the fees of the Chairman of Remuneration and People Committee to be $10,000 per annum effective from 1 July 2018. In addition, the company pays additional remuneration to directors of $10,000 per annum, on participation on the each of the various subsidiary Boards.
There have been prescribed a range of board orientations, which the boards of different companies adopt for the overall management and the operations of the entity. These have been explained as follows.
AUB group limited is committed to safeguarding a stronger and unique future for partners, clients, employees, shareholders, and stakeholders. It is seen that AUB Group Limited is being actively engaged in the CSR activities and sustainability practices. The company is committed to being a accountable and sustainable business. In last year, the company donated approx. $20,000 to society and charitable companies including Sunrise children’s villages, and creative foundation, which encourages and provides support the voices of approx. 40,000 children and youngsters in the country. As stated in report, the company is engaged in activities like volunteering, fundraising, and corporate donations.
It is noted that AUB group limited is well known to offer sustainable and balanced outputs to the customers, stakeholders, community, and people across the world. Along with this, it is building and uplifting trust, loyalty, and morale among the workers and customers as well. The entity increased approx. $ 42,000 for client children’s cancer institute Australia and contributed more than $ 22,000 to various companies including nominated charities such as KIVA Micro funds and the reach foundation (AUB Group, 2017). Furthermore, the company donated approx. $9,000to ample of charity organizations and communities including the good foundation, legs for eggs and Blackwood 8 (AUB Group, 2017). Risk services are made up to contribute in empowering customers and community to use their risk management strategies. Along with this, the risk service capabilities entail ample of solutions such as workers compensation, risk assessment, injury management, recruitment, placement, accident prevention training, and risk management support services (AUB Group, 2017). The company is carried by a philosophy originated on a holistic policy to handling risk. The company searches to influence the outputs in a way that promotes the overall value and worth of risk management in client companies. At AUB group limited, top management and managers are passionate and dedicated about how partnership can magnify success and growth in the international market. The organization further operates and manages diversity at the workplace to make a dynamic image in the minds of the customers. Aside this, the firm is constantly working towards the improvement and maximization the value and worth of the shareholders in the competitive market (AUB Group, 2018e).
After analysing the annual report, it is noted that the board has set an audit & risk management committee, which manages and operates under terms of reference permitted by the board. It is the responsibility of the board to analyse and focus on the management for ensuring that an effective and dynamic internal control framework exists within the organization. This system further helpful in protecting of assets and it increases effectiveness and efficiency.
AUB group limited is able to identify and analyse the specific sustainability development objectives such as good services, good health, wellbeing, gender equality, no poverty, and economic growth. It is seen that AUB Group limited joined the sustainability advantage program and sessions. With the excellent and dynamic commitment of CEO, the firm further initiated to shift its focus beyond rules, principles, compliance and develop support for sustainability and CSR by engaging senior managers and leaders in sustainability reporting, planning and practices. In today’s modern era, the company plans to strengthen and continue its sustainability activities in the near future. It is working on a sustainability and effective communication strategy for the workers and further focusing on the optimum utilization of resources and minimizing waste. AUB group limited, in order to stand against the rivalries globally is using dynamic sustainability policies.
As per the analysis of the composition of the board of directors, the evaluation of the various reports it can be said that the entity has a mix of the stakeholder ethical and resources orientation. The company has made voluntary disclosures on the CSR. In addition, the focus of the board is on all the stakeholders management and the providers of the resources; as depicted by the partnerships and collaboration approach of the entity.
A number of theories have been prescribed for the corporate social responsibility framework, to be used by the entities while reporting and disclosing the information on the lines of the activities undertaken by the company towards the wide range of the stakeholders. One such theory is the legitimacy theory. According to the legitimacy theory, a corporation makes use of the communication and the reporting channels, to inform the various stakeholders about its community and societal activities (Treviño, den Nieuwenboer, Kreiner & Bishop, 2014). The theory states legitimacy to be a generalised perception of the entity, its norms, values, and beliefs, to consider whether the actions of the entity are desirable within the social framework or not. The theory state that the companies build, and manipulate its image among the stakeholders and the various industry groups are using the communication channel (Deegan, 2014). Some of the instances of communication being used by the entity to reporting on its sustainability practices, and thereby building up its goodwill are as follows.
As on 27th August 2018, the company reported on its results. While there was an increase of 10.3 percent in the Adjusted Net Profit After Tax (Adjusted NPAT) which accounted to be $44.6 million, the company also described its focus and inclined towards long term growth (AUB Group, 2018f). In addition, the company reported and declared a dividend of for FY18 to a total of 45.5 cents per share.
In another major and recent news and communication instance, the company announced its partnership with the company Core Logic that is a leading provider of consumer, financial and property data, analytics and related services to businesses. Thus, it is an important move for the company to improvise its marketing and communication efforts. The company regarded as the facility to provide the real timer data to its clients (AUB Group, 2018g).
One more instance of the communication conduct of the entity was when the entity had released a media release about its subsidiary NZbrokers on February 28th, 2018. The entity reported on the potential acquisition and the new members for its enterprise that aligns with its overall culture and value at a whole. As stated in the Chairman and the CEO reports, the company follows a strategy of building strong partnerships and collaborations to conduct business activities. On the same lines, the entity demonstrated its growth through its subsidiary that represented about 164,000 clients, 85 locations across the country, thereby leading to an approximate of 35 per cent increase within a period of 12 months (AUB Group, 2018h).
Conclusion
Thus, as per the discussions conducted in the previous segments it can be concluded that corporate social reporting and sound corporate governance practices are crucial for the conduct of the business in the global world of 21st century. Various entities across the globe engage in sustainability and community practices, as a means of compliance requirements, and also as a means of improving the perception of the entity among the various stakeholders. The company evaluated in the report was AUB Group of Australia. The company has been listed on Australian Stock Exchange and thus is required to abide by the principles of the same. As per the other regulatory requirements, the company very well sets out in its report and official website, about the corporate governance structure, the composition of its board, the remuneration policy, and other mandatory and relevant details. It has also been found that the company has carried out a sufficient number of activities over the past year towards its community support and organic growth. In addition, it is found on application of the legitimacy theory that entity has been utilising the communication channel to report its activities and current major happenings to the various range of stakeholders. Thus, it can be stated that in order to survive in long run it is necessary for the companies to engage and report on the sustainability, ethical, and governance practices, which in turn also serve as a means of transparency in reporting activities.
References
AUB Group. (2017) Annual report 2017 Retrieved from: https://www.aubgroup.com.au/annualreport/2017/files/assets/common/downloads/AUB%20Group%20Annual%20Report%202017.pdf
AUB Group. (2018a). Who we are. Retrieved from: https://www.aubgroup.com.au/site/who-we-are/our-purpose-and-strategy
AUB Group. (2018b). Investment 2018. Retrieved from: https://www.investsmart.com.au/shares/asx-aub/aub-group-limited
AUB Group. (2018c). Our People. Retrieved from: https://www.aubgroup.com.au/site/who-we-are/our-people
AUB Group. (2018d). AUB Group Interactive Annual Report 2018. Retrieved from: https://www.aubgroup.com.au/annualreport/2018/
AUB Group. (2018e). Join the Austbrokers network. Retrieved from: https://www.austbrokers.com.au/irm/content/join-the-austbrokers-network.aspx?RID=325
AUB Group. (2018f). AUB Group’s focused approach delivers strong growth. Retrieved from: https://www.aubgroup.com.au/site/blog/aub-groups-focused-approach-delivers-strong-growth?_=1537056000000
AUB Group. (2018g). Austbrokers partners with CoreLogic to give brokers real-time data for their clients. Retrieved from: https://www.aubgroup.com.au/site/blog/austbrokers-partners-with-corelogic-to-give-brokers-real-time-data-for-their-clients
AUB Group. (2018h). NZbrokers Continues to Build Strong Momentum with Acquisitions and New Members. Retrieved from: https://www.aubgroup.com.au/site/blog/nzbrokers-continues-to-build-strong-momentum-with-acquisitions-and-new-members
Deegan, C. (2014). An overview of legitimacy theory as applied within the social and environmental accounting literature. Sustainability accounting and accountability, 248-272.
Treviño, L. K., den Nieuwenboer, N. A., Kreiner, G. E., & Bishop, D. G. (2014). Legitimating the legitimate: A grounded theory study of legitimacy work among Ethics and Compliance Officers. Organizational Behavior and Human Decision Processes, 123(2), 186-205.
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