A large number of Australian dairy making firms engaged in making cheese and other specialty products based on diary are marketing themselves for competitive advantages. The competition is high as most of the firms are competing globally. Bega Cheese is one such firm who has been witnessed to be structuring themselves with highly effective and strong corporate governance and uses CSR as their favorable marketing element (Bega Cheese, 2018). This paper is a summary of their CSR initiatives and the corporate governance which is planned strategically for Bega Cheese.
The case study organization, Bega Cheese is completely focused in the achievement and the maintenance of the highest standards regarding transparency and accountability in its management of the entire cheese business of Bega brand. The Board has long back implemented varied policies of corporate governance and best practices which the brand considered being standard and basic for consistent success and continued the expansion of Bega Cheese brand along with enhancement of values for every stakeholder associated with the brand. The Corporate governance principles and recommendations are framed with mutually agreed basis with the shareholders of Bega (Mynuzee, 2018, p. 1-5).
As per the corporate governance statement, the company’s primary practices and policies are in sync with the business objectives and recommendations. The Board of Directors of Bega Cheese has played a major role in the development of the company’s corporate governance guidelines by creating an infrastructure where management and Directors can all perse the goals of Bega Cheese with the benefit created to its stakeholders. These frameworks are also kept flexible such that it can give freedom to the firm to operate and conduct its business.
From time to time-based on the resolutions and decisions made by the Board, the Director authorized numbers can vary. Currently, the executive chairman of the company is Barry Irvin who has been leading the firm since 2000 to help expand from a regional dairy firm to a global firm. Bega Cheese currently has 7 Directors (Anonymous, 2018).
The function of management and Board Committees as per the Board Carter and the AUdot and Risk Committee and the NRC or Nomination and Remuneration Committee. Board Directors are helped with an induction process where the individual goes through company policies and related operational information. The responsibilities are delegated to the CEO for performing daily works of Bega Cheese. Duties of Chairman is also allocated for making strategic business decisions for the growth of the firm. Enhancing the reputation of the firm in terms of shareholders and the environment are reviewed regularly and enhanced (Bega Cheese, 2018).
The Board of Bega Cheese comprises currently of 5 supplier directors, The external and independent Director and Executive Chairman is also a part of this 5sipplier and has no business or interest in the firm. The role and responsibilities of each of the directors are mentioned clearly (BusinessCheff, 2018).
Board of Bega Cheese endorses a common code of conduct based on which the firm performs its corporate governance structure. A cohesive set of basic principles are used for the Directors and stakeholders to work on including all employees.
The remunerations of the Directors, Executive Chairman, Non- Executive Directors, CEO, and any personnels of key management all are as per the basic standards. The primary management personnel details are all as per the Director’s report of Bega Cheese. The compensation is fairly justified for the returns made to the shareholders. Key management personnel is recommended by the human resource committee and from nomination remuneration. Remuneration governance of Bega Cheese limited is as per the detection, attraction as well as basic duties of the CEO, Directors and all other key management personnel (Annualreports, 2018, p.18-25). Corporate guidance is provided to the CEO and Executive Chairman so that they can implement decisions to the Board with respect to the remunerations as per human resource strategic planning of Bega Cheese Ltd.
One of the main roles is to evaluate and sort further sanctions to the Bega Cheese Board to transform the board composition. This is to ensure that they are competent to operate impactful and effectively in order to discharge their responsibilities as well as duties in a sufficient manner (Anu, S. 2016, p.111-112). The second role is to suggest as well as assist to the Board for ensuring that the company possesses human resource policies which are coherent and enables that the group also helps in attracting and retaining the executives and directors. All of them together will help in creating a value addition for the shareholders and also support the business targets and objectives in a strategic manner. The procedures and effective policies will attract, inspire and retain skilled people and its effectiveness for meeting the current as well as the future requirement of the company shareholders (Brine and Brown, 2016,p.11-12).
Australian dairy producers did surveys to understand the risks the firm has from its varied activities. A minimum time is needed as well as temperature which is prescribed in the code of conduct related to high temperature and short time-based pasteurisations of cream and milk in the making of dairy products. Pasteurization of dairy products is also represented as a basic treatment which is used for the transformation of raw milk to different manufactured products. The dairy products comprise the different enhanced level of solids or fats like cream, ice-cream mix as well as yogurt, high-temperature combinations which as standardized as per Australia New Zealand Food Standards Code. This aids in the compensation of the protection of the microorganisms. There are risks Bega Cheese experiences in relation to post-pasteurization related contaminations. This is a consistent management issue faced by the firm manufactures, and this type of contaminants can be due to environment and equipment or personal contamination. In order to manage such a risk, Bega Cheese implements a robust control on the hygiene, cleaning as well as sanitation and product handling methodologies as per the standards which ensures safety as well as protection of the post heat treatment related to the final product (Vuir, 2018,p. 14-20).
Another risk which Bega cheese experiences are the uncertainties the firm faces in supporting customer requirements. There are varied requirements of customers especially of a firm works in different geographical locations. The changing needs of the customers are responded and understood. If the needs of customers are not met the firm can lose the loyalty of customers (Becker, 2018). A well-protected workforce which can manage the uncertainties by a systematic and a consistent approach is followed by the firmin order to manage the risks. Employees of this company are needed to manage the source of the uncertainties. Standard frameworks are used by Bega Cheese to consistently manage the risks in an effective manner such that the firm can create the best value possible. Risk management is integrated into all the different decision-making procedures of the firm.
Corporate governance is extremely important for Bega Cheese as it aims to meet its strategic business goals. The structure of corporate governance controls, detects, policies and guidelines which help in driving the enterprise to a goal which is satisfying for the needs of the stakeholders. It comprises internal as well as external mechanisms (Frieslandcampina, 2018).
Internal Mechanism
The best controls of any corporation occur from its internal corporate mechanisms. It helps in the control as well as tracking of the activities as well as the progress of an enterprise and can also make efforts to make corrective actions if the company at times goes off their usual ethical track. Bega Cheese internal stakeholders are its employees, managers, executive’s partners, and owners. The firm has made its business operations smooth with clearly reined likes of reporting and performance measurement systems. The firm has structured its Board with clear lines of duties, management oversight and independent audits, control segmentation and policy development in order to frame its corporate governance (Davoren, 2018).
External Mechanism
These are the control mechanisms which the firms aim in controlling and managing on the external environment of the firm. Legal compliances and sufficient debt management are some of the external mechanisms of Bega Cheese in which it the organization aims in imposing regulatory guidelines as well as union-related contracts for the best practices of the business (Asx, 2018).
Bega Cheese is a globalized enterprise. Because of this the investors and manager of Bega Cheese aim in developing a very strong understanding of how the Bega Cheese boards will work in varied nations. There are many barriers to operating business processes in different countries. Hence managers are spending more time to understand culture and preferences and demands of consumers of global countries. Corporate governance is madein relation to the environment, shareholders, employees and Board o directors. The various operations associated with them are transportation, energy consumption; work process and farming methods used which needs to be in sync with the CSR policies and practices governed in Bega Cheese corporation (Leach, 2018). Every aspect related to the organization is tracked in regular intervals by company management in order to frame a positive brand identity in order to win the support of customers, partners and get a better position in the middle of the competition.
Bega Cheese has designed a corporate social responsibility program as the Australian government has given governance for all firms to take reflective actions on their respective carbon footprints. Bega cheese limited has adopted corporate governance, strategic business, and corporate social responsibility as their effective CSR strategies. The CSR strategies of Bega Cheese cover all the following elements effectively. Bega Cheese Corporation has its designed corporate social responsibility for lowering the effects of greenhouse gas for the betterment of the environment. CSR or corporate social responsibility is in relation with treating its varied stakeholders in an ethical manner or in a socially responsible method. The main aim is to protect and share the brand image in a positive manner (Reliefweb, 2014).
The community and stakeholder community has been heavily dependent on the firms CSR policies with the help of enhanced cheese products. As a cheese producer, the firm is aiding in the creation of enormous job opportunities thus enhancing the standard of living of citizens in many companies. Local dairy farm products are used more in order to enhance and encourage local producers. The carbon tax introduction has created a great opportunity for the firm to focus on CSR concept and balance the impact on the environment of the firm. Bega Cheese also makes enormous efforts to develop employee and promote the welfare of its workers.
Conclusion
Works in relation to the corporate social responsibility of Bega Cheese the main responsibility of an enterprise is no longer today only profit. From the basic well-being of its employees to focus on CSR and philanthropic efforts are all today focused on the varied social as well as environmental concerns (Laurea, 2018, p.120-136). Today it covers different business practices with special focus on health and safety of employees, green marketing practices, business and community engagement, engagement of stakeholders and a lot of others. Corporate social responsibility has been one of the most prominent aspects of organizations in the current century. Progress made in CSR is today made with parallel to competition and achievement of other productive and profitable objectives for companies like Bega Cheese. Every firm requires having corporate governance to monitor and evolve its efforts consistently.
References
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