Book Title: Current Issues in Business Ethics: Edited by: Peter W.F. Davies Reference no: HF 5398 C 87 1997
CORPORATE GOVERNANCE AND ETHICS
By: Philip Stiles
“The increased interest in corporate governance has mirrored the rise in concern in business ethics generally with the voluminous literature on high profile scandals and failures in firms providing a common base for much descriptive and prescriptive work in both areas. Both subjects, too, share a key focus on agency problems, which has driven much theoretical and empirical work. Many commentators on corporate governance assume that boards, if properly harnessed, can bring important performance gains. Many ethical theorists share a parallel assumption about the bottom-line benefits of utilizing ethical management principles.” - The quote discusses that nowadays business ethics are given much importance than it was treated before. The corporate governance is also rising at the business ethics are much practices now. The quote even said that if corporate governance will be more visible and will continuously be practiced together with the business ethics that certain company who does those things can experience performance gain in their business. - The entire chapter talks about the corporate governance and the business ethics. They say that the best kind of government is self-governance. It can also be applied to the corporate governance. Corporations have their own juridical personality meaning that they are separate individuals that can also be self-governing establishments. For a certain corporation to be self-governed it should have its own set of business ethics and they have to put it into actions and they have to make their own set of code of ethics. Just like self-governance, it will be much helpful since corporate governance means the corporation is an entity that is responsible in their actions. If every corporation will be self-governing, then we would not...