Tag Archives: University of Melbourne

Religious Discrimination and Financial Hardship: A Minefield for Sponsors Like Qantas

The ‘Folau Clause’ relates to the case of Mr Israel Folau, whose comments on his private social media account led to the termination of his contract with Rugby Australia.   Under the ‘Folau Clause’, additional requirements will be imposed upon businesses with annual revenue of at least $50 million when it comes to standards of dress, appearance or behaviour that limit religious expression.  The Bill states that such restrictions must be shown to be necessary to “avoid unjustifiable financial hardship on the business”. The process of calculating potential financial hardship will fall on financial professionals, particularly management accountants.

Professor Janek Ratnatunga says, “The application of the ‘Folau Clause’ means organisations will have to prove that their social media rules relating to religious expression, and subsequent actions taken, are in place to protect their brand. However, as the impact of individual social media activity on brand reputation is impossible to quantify, the draft bill instead defines the impact on the brand in financial terms, i.e. as causing “unjustifiable financial hardship on the business”.

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Why do corporations like Boeing and VW Prematurely launch killing machines?

Professor Janek Ratnatunga is the CEO of the Institute of Certified Management Accountants and asks the question…. He has held senior appointments at the University of South Australia, Monash University, University of Melbourne, and the Australian National University in Australia; and the Universities of Washington, Richmond and Rhode Island in the USA. Prior to his academic career he worked as a chartered accountant with KPMG.   He has also been a consultant to many large Australian and international companies and to the World Bank.

Cost-benefit analyses that compare quality-cost relationships, profits, and market share with the risks of failure may be at the heart of decisions to prematurely launch products that are known to be faulty, according to Professor Janek Ratnatunga, CEO of the Institute of Certified Management Accountants (ICMA).

Professor Ratnatunga believes it is time to consider the management accounting implications, “when the faults of some of these products are so great that corporations are actually launching glorified killing machines.”

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