Corporate Governance and Ethics

Powerful Essays
TASK: TERM PAPER

TOPIC: CORPORATE GOVERNANCE AND ETHICS

Table of contents

Introduction………………………………………………………………………………………3

Framework for understanding ethical decision making……………………………………………………………..5

Understanding the views of corporate governance…………………………………………………………….…...15

Corporate governance as a dimension of ethical decision making……………………………………….………...23

Corporate governance issues…………………………………………………………………………………..…...23

Conclusion…………………………………………………………………………………………………….…...50

Reference………………………………………………………………………………………………...…………52

INTRODUCTION

Ferell, O.C., Fraedrick, J., & Ferell, L.,(2011) defines Corporate governance is defined as the development of of formal systems of accountability, oversight and control in order to remove the opportunities of employees to make unethical decisions. Accountability refers to the synchronizing of workplace decisions to the firm’s strategic direction in alignment to the ethical and legal considerations. Oversight refers to effective checks and balance policies that are in place to limit opportunities for managers and employees to engage in unethical practices. Control is the processes and procedures put in place to audit and improve on the organizational decisions and actions.

Business ethics refers to the principles, values and standards that guide individual and organizational behavior in the business world. this refers to upholding of noble ideals such as transparency, honesty, trustworthiness among others.

From the 1920’s Progressive Movement in the U.S.A to today, the concept of business ethics has been of great concern to the business world due to the impact that economics or business has on every sphere of our lives. The twenty first century has been witness to turmoil and near disintegration of global civilization as a result of the



References: Baier, kurt. 1958. The moral point of view: A rational basis of ethics. Ithaca: Cornell University Press. Beauchamp, Tom L., and Norman E. Bowie, (1979). Ethical theory and business. Englewood Cliffs, NJ: Prentice-Hall. Blair, M.M. (1995). Ownership and control: Rethinking corporate governance for the twenty first century. Brookings Institution. Washington, DC. Berle, A.(1931) Carroll, A. (1979). A three dimensional conceptual model of corporate social performance. Academy of management review,4, pp. 497-505. Dignam, A., Galanis, M. (2009) The globalization of corporate governance, Farnham, UK: Ashgate Publishing. Ferrel.,O.C., Fraedrich, J., Ferrel, L.,(2005) Freeman R.E. (1984). Strategic management: a stakeholder approach (Boston: Pitman) Friedman, M Ghosal, S. (1984). “Bad management theories are destroying good management practices,” Academy of Learning & Education, 4, pp.75-91 http://www.brefigroup.co.uk/acrobat/boardroles.pdf Leys, Wayne A.R. 1968. Ethics for policy decisions: The art of asking deliberative questions. Westport. CT: Greenwoodpress. Mueller, Robert K. 1977. The hidden agenda. Harvard Business Review 55(Sept.-Oct.): 40-52. Schwenk, Charles R. 1984. Devil’s advocacy and dialectical inquiry effects on prediction performance: task involvement as a mediating variable. Decision sciences 15:449-62. Solomon, Robert C., and Kristine Hanson. 1985. It’s good business. New York. Atheneum Publishers. Taylor, Ronald N. 1975 psychological determinants of bounded rationality: implications for decision making strategies. Decision sciences 6:409-27. Tirole, J. (2001). “Corporate Governance,” Econometrica, vol. 69, no.1, pp. 1-35 Warutere, P Wheeler, D., Davis R. (2004). Gaining goodwill: Developing stakeholder approaches to corporate governance. Journal of general management 30 (2):51-74

You May Also Find These Documents Helpful

  • Powerful Essays

    Angelique C. Rufino Book Title: Current Issues in Business Ethics: Edited by: Peter W.F. Davies Reference no: HF 5398 C 87 1997 CHAPTER 3 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…

    • 979 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Module Corporate Governance Business Ethics & CSR H9CGBE: Corporate Governance Business Ethics & CSR Extra Header Data Module Delivered in Programme Code MBA MSCMGMTD MSCMRKD PGDMGT Programme Master of Business Administration Msc in Management MSc in Marketing Postgraduate Diploma in Science in Management Semester 2 1 1 2 Delivery Mandatory Mandatory Elective Mandatory Module Delivered in Programme Code MBA MSCMGMTD MSCMRKD PGDMGT Programme Master of Business Administration Msc in Management…

    • 1044 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    [Dec-13] [MPRBA 203C/MPCBA 203C/MPRHR-203B] MBA, Twinning MBA (CMU) & MHRM Degree Examination II TRIMESTER ETHICS IN BUSINESS AND CORPORATE GOVERNANCE (Effective from the admitted batch 2013–14) Time: 3 Hours Max.Marks: 60 --------------------------------------------------------------------------------------------------Instructions: All parts of a section must be answered in one place only. Figures in the right hand margin indicate marks allotted. ---------------------------------------------…

    • 528 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    BUSINESS ETHICS & CORPORATE GOVERNANCE OCS AGENDA • Understanding Ethics • Managing Business Ethics • Corporate Social Responsibility • Complexity of Ethical Issues • Ethical Leadership • Evaluation of Corporate Governance • Internal & External Corporate Governance mechanisms • Corporate Governance Ratings OCS Scams OCS Values • Fundamental beliefs • Principles for good, right and just • Evaluate something vis-à-vis a Standard • Integrity, Patriotism, Fairness OCS Morals • Values attributing…

    • 5886 Words
    • 71 Pages
    Powerful Essays
  • Satisfactory Essays

    BUSINESS ETHICS & CORPORATE GOVERNANCE BUSINESS ETHICS Distinguishing: • Ethics • Ethics in Business • Business Ethics • Governance • Corporate Governance • Good Corporate Governance In brief: • Ethics: code of conduct for personal behaviour. • Ethics in Business: Applying personal ethics into business. • Business Ethics: Ethics of business, what is good & bad, right or wrong for business. • Governance: Methods and practices…

    • 25608 Words
    • 103 Pages
    Satisfactory Essays
  • Good Essays

    BUSINESS ETHICS AND CORPORATE GOVERNANCE ASSIGNMENT I. CSR practices by Maruti Suzuki & Maytas Infra ltd. A) CSR by Maruti Suzuki India Ltd. Employee welfare Company will be deeply committed towards the welfare of its employees, their families and communities around its operations to improve quality of life as a whole. Practicing 3R (Reduce, Reuse and Recycle) The company has been promoting 3R since its inception. As a result the company has not only been able to recycle…

    • 1514 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    Course: Compliance, Ethics and Corporate Governance Date: October 7, 2013 Case Study Re: The continuous wave of financial scandals and whether regulators are often slow to respond by bringing enforcement actions against corporate wrong doers and so preventing widespread negative effects. Discuss the key reasons why this would occur and make recommendations to reduce the impact. Waves of corporate shenanigans continue to shadow the financial sectors despite the near cataclysmic collapse…

    • 2633 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Corporate Governance

    • 1307 Words
    • 6 Pages

    Corporate Governance Corporate Governance Corporate governance is concerned with set of principles, ethics, values, morals, rules regulations, & procedures etc. Corporate governance establishes a system whereby directors are entrusted with duties and responsibilities in relation to the direction of the company’s affairs. The term “governance” means control i.e. controlling a company, an organization etc or a company & corporate governance is governing or controlling the corporate bodies…

    • 1307 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    LECTURE NOTES SUBJECT: BUSINESS ETHICS & CORPTORATE GOVERNACE CHAPTER NUMBER-I CHAPTER NAME: - INTRODUCTION PREPARED BY: MR.SHAIKH JUNED SAOUD In brief: - Meaning of Ethics: - Ethics is derived from the latin word ETHICUS and in greek it is called ETHICOS meaning character or manners. In other words ethics is said to be source of morals, moral principles and recognized rules of conduct. Definition of Ethics: - According to R. Wayne Mondy, ‘ethics is the discipline dealing with what…

    • 1078 Words
    • 5 Pages
    Satisfactory Essays
  • Powerful Essays

    Corporate Governance

    • 1940 Words
    • 8 Pages

    What is Corporate Governance? Corporate Governance is a generic concept, and in most cases it is defined by its objectives. Corporate Governance can be defined and analyzed by two terms. The first was introduced by the Organization of economic Corporation and Development (OECD 1999). OECD defined “Corporate Governance as a system in which business corporations are directed and controlled. The Corporate Governance structure specifies the distribution of rights and responsibilities among the…

    • 1940 Words
    • 8 Pages
    Powerful Essays