Corporate Goverance and Code of Ethics - Article Example

Summary

This essay analyzes that corporate governance is a term that is broadly used to refer to the set of laws, customs, rules or policies and processes that forms the basis of the relationship between the managers, shareholders, suppliers, employees as well as other business stakeholders…

Download full paper File format: .doc, available for editing

GRAB THE BEST PAPER96.6% of users find it useful

Read Text Preview

Subject: Management
Type: Article
Level: Undergraduate
Pages: 3 (750 words)
Downloads: 3
Author: modestoabernath

Extract of sample "Corporate Goverance and Code of Ethics"

Download file to see previous pages

This essay will focus on the role of corporate governance in creation and adoption of the corporate code of ethics. It is factual that the quality of management in an organization is determined by the effectiveness of its system of corporate governance. Proper corporate governance should aim at bringing onboard honest and competent employees. Besides, it should be geared towards instituting a framework that will ensure adequate employees compensation so that they are motivated to give their best to the company.

Corporate governance together with codes of ethics plays a crucial role in the success of a business because it shapes the way the company is viewed by the stakeholders. This article shall focus on the factors that influence the creation and adoption of the corporate code of ethics by a firm as well as those that determine its effectiveness. Some of these factors include the effects of the board diversity, board stock ownership and the constituent of the board directors on the creation of the corporate code of ethics.

High profile scandals that involve corporate officers have in the recent years led to an increased attention on the subject of corporate governance. Research reveals that board of directors plays a significant role in establishing the code of ethics in a firm. Thus, it is necessary for an organization to engage the services of the directors that have the competence of planning and overseeing the corporate code of ethics. Studies show that researchers, government regulators, and practitioners are all in agreement that independent directors are more suitable than the insiders in championing the interests of the shareholders and other stakeholders because in most cases they possess vast experience and it is also presumed that the may make the board be more independent.

In addition, they tend to have a higher degree of awareness on their moral and legal commitment.

...Download file to see next pages Read More

CHECK THESE SAMPLES OF Corporate Goverance and Code of Ethics

Corporate Ethics in the Post Enron Era from the Role of a Policy Analyst

hellip; The issue of ethics in governance and business dealings has affected huge corporations like Enron, Global Crossing, WorldCom, Tyco International, Anderson, Adelphia Communications, Merrill Lynch, Parmalat, etc.... All these issues have renewed the need to strengthen corporate governance by inculcating business ethics in corporate dealings.... ethics as a concept refers to concepts or maxims of right or wrong behavior in society.... ethics can be equated to morality....

9 Pages (2250 words) Coursework

Maintaining proper business ethics

With the many global challenges bedeviling the business world, many corporate are faced with the challenge of balancing between their concern for profits and maintaining proper business ethics.... Many studies have shown a direct correlation between ethics and business, with two divergent conclusions: one argument has been that good ethics is a prerequisite for good business (Fieser).... Maintaining proper business ethics In this regard, those businesses that uphold moral practices are profitable in that they are able to meet the right standards of product quality while avoiding legal suits against them....

4 Pages (1000 words) Essay

Corporate Governance and Ethics Discussion

As any other field of endeavor, businesses do require ethics and values (Ferrell, Fraedrich and Ferrell, 2008: 18).... Conscientious and well informed citizens do appreciate and prefer to invest in businesses that are run on sound ethical guidelines. Businesses subscribing to ethical behavior tend to gain tangible rewards in the sense that ethics not only portray any brand as being clean and above board, but they also streamline and organize the internal functioning of the businesses....

8 Pages (2000 words) Essay

Ethical Issues in the Business Environment

For example an organization individually may be releasing very little pollutants in the environment but there are other organizations who also have the same individual value system and the urge to strive for excellence who are also releasing the pollutants and when summed up leads to a huge amount of pollutants in the environment which are harmful to a large number of people, thus raising the need for legal interventions and code of ethics in this case restricting the organization from polluting beyond a certain limit or charging higher environmental tax to the larger polluters....

8 Pages (2000 words) Essay

Gorporate Governanace Advisor for case

They are expected to share holders' rights, recognize shareholders interests, and promote ethical standards which are established by the code of conducts of the company, to give proper disclosure and transparency of any financial and commercial matters.... To avoid the spread of failures corporate governance has come in handy for most companies in economies which are fragile thus need to look at accountability, ethics and transparency issues (Mallin 2007).... As a corporate advisor, the first task at hand is to make the chairman understand what corporate Governance is all about and above all what it entails....

2 Pages (500 words) PowerPoint Presentation

Business Ethics and Corporate Social Responsibility

This research is being carried out to critically assess the similarities and differences in the terms 'Business ethics' and Corporate Social Responsibility.... Then the researcher will discuss the various approaches to Business ethics taken by the London stock exchange organization.... However, Corporate Social Responsibility (CSR) and business ethics are two business features which have distinct characteristics, some of which are similar and some of which are mutually exclusive in nature....

11 Pages (2750 words) Essay

Corporate Governance

The Body Shop's business has set for itself a code of business ethics.... This paper examines in the context of the company, The Body Shop, as to how adherence to corporate governance can be turned into a competitive advantage as it traverses the concepts of corporate social responsibility and business ethics.... he Financial Services Authority has evolved a refurbished code on corporate governance replacing the1998 intending that the new code will apply for reporting years beginning on or after 1 November 2003....

12 Pages (3000 words) Term Paper

Reforming Corporate Governance

ccording to the national business ethics survey conducted in 2009, most respondents identified ethical challenges and misconduct within the workplace.... This case study "Reforming corporate Governance" explains why reforming corporate governance will eliminate the unethical behaviors of companies that have in the past affected the economy of the United States and the weaknesses of the Sarbanes-Oxley act.... nbsp;… The corporate governance environment in the United States must be effectively regulated to eliminate the loopholes that companies have exploited to fleece the public and the stakeholders....

8 Pages (2000 words) Case Study