Ethics

Corporate governance is the compendium of regulations, relationships, and procedures that coordinate the functions in a corporation. Every company has got its vision and objectives to achieve both in the long-term and in the short-tem.. It is very easy to lose sight of the vision if there are no well-laid structures that the company uses as a means to the vision. This paper seeks to evaluate the fundamental corporate governance principles and how they impact to the companys quest for its vision, corporate image, integrity, ethical status just to mention a few. The annual report of Fluorotechnics limited will also be considered.

Corporate Governance Principles
ASX Company has got a framework of eight corporate governance principles, where in this section only three of them will be considered. The three principles to be considered are as follows lay Solid foundations for management and oversight promote ethical and responsible decision-making and remunerate fairly and responsibly (ASX 2007).

It is important that Companies candidly spell out the duties and responsibilities of the board of directors and the management function. The rest of the staff should be conversant with the duties and responsibilities of their superiors to ease effective flow in the activities of the company. This is important because a bigger portion of the decision making process is entrusted to the board and the management.

A good demarcation between the roles of the board of directors and other senior executives in the company is equally important. This information helps the members of staff to perform effectively and appropriately since the decision making mandate is brought closer to other employees. For example, if a board of director is not available, approvals that might need hisher attention will not need to wait as there are other members of staff that can act on the absent directors behalf. However, the status of the executive arm of the company is not immune to scrutiny therefore, a report should be processed in regard to their performance.

The decision making process of companies should be engraved on quality ethics and responsibility. Companies should establish a code of conduct somewhat peculiar to itself. This code of conduct should be communicated to all it becomes a constitution that governs all the members of staff. The members of staff have a duty in safeguarding the image of the company. The management must safeguard the interests of the stakeholders together with providing them with information that will boost their confidence in the investments they put in the companies through buying of shares. All staff members have a duty to watch-out for any unethical matters arising and report them accordingly.

Just compensation is very important in every company. It should be ensured that all employees are remunerated accordingly and justly. There should be a committee whose work is to administer the payroll modalities. Proper and distinguishable structures should be reinstated. The remuneration modalities between the non-executive arm of the company and the executive arm should be clearly demonstrated.

Fluorotechnics Limited
In this section the case of Fluorotechnics Limited shall be analyzed in respect to the corporate governance principles discussed above. It is impressive to note the structuring of Fluorotechnics annual report which convincingly adheres to the principles of corporate governance. The entire chairmans letter addresses the achievements and downfalls of the company both in the strategic sense and in the economic sense. The most impressive thing is that this information is directed to the shareholders who have a right to know how the company they have invested in is performing. The report of the director also captures the roles of the board of directors and their different capacities.
                       
It is also impressive to note that the company has an Audit and Risk Committee  Remuneration and Nomination Committee. It can be noted from the directors report, Mr. David Weber is a Non-Executive Director and the Chairman of the Remuneration Committee (Fluorotechnics Limited 20098). It also captures Mr. Rick Taylor as a Member of Audit  Risk Committee and Member of Remuneration and Nomination Committee. It is also impressive to note that a Remuneration Report is provided. For instance the remuneration report captures the principles used to determine the nature and amount of remuneration details of remuneration service agreements share-based compensation and additional information (Fluorotechnics Limited 200910).

Conclusion
We can summarize the three corporate governance principles as follows good organizational structures which state clearly the responsibilities of all members of staff proper code of ethics founded on quality ethical principles and just compensation policies.
       
The analyses of the annual report of Fluorotechnics Limited are superb and impressive. No doubt that the company projects itself within the framework of the principles of corporate governance. I agree that the entire report meets the requirements of a good corporate hence Fluorotechnics is an example to be emulated by other companies in Australia due to its superb structures.