Corporate Governance and Ethics - Assignment Example

Corporate governance and ethics are considered essential requirements for any business to sustain in the competitive market scenario. Compliance with the corporate ethics and government code are vital functions of the top management level, which assists them in taking important decisions. As ascertained, corporate governance and ethics vary within the organizations according to their size and industry specifications, wherein the role of international policy standards like IFRS and FRS play a crucial role. The role of the board of directors in compliance with ethics and corporate governance is similar to that of the functions related to the company’s risk management. In general, a standard ethical code entails the company’s mission and vision statements along with the decision-making framework among others (Deloitte LLP, n.d.).

In the views of IFC (n.d.), there are a few basic advantages of compliance with governance codes and ethical standards. The benefits, such as knowledge dissemination, transparency, and flexibility amidst the corporate governance code are associated with compliance and ethics. Concerning the benefits of knowledge dissemination, it can be observed to assist in exploring information about the best practices of corporate governance within the organizations. Flexibility amidst the corporate governance code also provides a scope for the organizations to adopt the practices according to the necessity of the stakeholders.

Furthermore, transparency is vital for the shareholders to have a brief understanding of the company’s position in the market, which indicates that certain risks are associated with the financial disclosure practices conducted by organizations (Wong, 2008).

Sports Direct Company is a major publicly listed company and a leading brand within the UK that deals in the retailing of sportswear. The company provides multi-channel scope to the European and the UK markets operating in the market segments for Premium Lifestyles, international retail as well as UK sports retail and brands. Accordingly, it follows certain key principles for gaining competitive advantages over others.