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Discussion Questions( corporate governance& ethics) - Essay Example

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The popular Capitalistic interpretation of business is extended in terms of profits and stock prices merely. Infact such shallow notions about business severely undermine the importance and contribution of business in the social and economic life. As any other field of endeavor, businesses do require ethics and values (Ferrell, Fraedrich and Ferrell, 2008: 18)…
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Discussion Questions( corporate governance& ethics)

Download file to see previous pages... 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. Considering the contemporary business environment defined by a cut throat competition, ethical credentials endow businesses with sound and reliable USPs that eventually translate into an enhanced market share and big profits. Affiliation to credible ethics makes the consumers and the investors feel positive about any business and bolster its public perception as a business that is trustworthy and reliable.
Respect for law, caring for environment, being punctual with customer care, being transparent and accessible are not mere pies in the sky, but are the very fundamentals that form the bedrock of any sustainable and profitable business. Market share, investor trust and brand appeal is primarily about perceptions and commitment to ethics influences the perception about any business with the consumers and the investors. Sound ethics endow any business with a strong brand appeal and investor's interest.
Hence the businesses that subscribe to ethics stand to gain much in the long run. Allegiance to ethics always has a direct positive influence on the public perception, brand appeal, stock prices and market share. A dependable reputation is the ultimate reward that a business can harvest out of its ethical commitments.

Answer 2: Corporate Governance
Corporate governance is the overall vision that defines the direction and functioning of a corporation. The concept of corporate governance is dependent upon accountability in the sense that it lays down the respective duties and guidelines for the different human constituents of a corporation. Corporate governance elaborates the procedures and norms that are adhered to while making decisions in a corporation. Corporate governance directly influences the predominant moral order that has a direct bearing on the parameters used for assessing the final performance of a corporation and chalks out the strategies resorted to, to achieve the objectives cherished by a business. Broadly speaking corporate governance is about transparency, morality and accountability.
The stakeholder approach of corporate governance is more closely aligned to the given definition. The conventional stockholder approach to corporate governance is utterly narrow in its scope. Stockholder approach to corporate governance assesses the performance of a corporation in terms of quarterly results, balance sheets, net profit and stock prices. Such an approach owes allegiance to just one entity that is the overall interest of the stockholder. The fact is that any corporation is run by humans and has a human face that is continually monitored by the society. Net profits cannot be and should not be used as the sole criteria for evaluating the performance o ...Download file to see next pagesRead More
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