report on corporate governance and business ethics.doc
《report on corporate governance and business ethics.doc》由会员分享,可在线阅读,更多相关《report on corporate governance and business ethics.doc(5页珍藏版)》请在得力文库 - 分享文档赚钱的网站上搜索。
1、Corporate Governance and Business Ethics1. Introduction Concept of corporate governance and business ethics has gained significant importance. Corporate governance has enjoyed a long tradition in the world of management sciences. Good corporate governance is key to the integrity of corporations, fin
2、ancial institutions and markets, and central to the health of our economies and their stability. With the growing strength of consumer movements and rising levels of awareness among stakeholders, corporations are realizing that stakeholders and consumers are no longer indifferent to unethical practi
3、ces like financial irregularities, tax-evasion, poor quality products and services, kick-backs, non-compliance with environmental issues, and hazardous working conditions. (RD Jajoo, 2008) Corporate governance and business ethics are important elements for well-functioning of the society.2. Business
4、 Ethics and Corporate GovernanceThe fast-moving economic development provides huge opportunities for corporate to grow. Meanwhile, the competition requires the company to find the most suitable way for its long-term development. Recent business scandals and financial crises continue to provide ample
5、 cause for concern and have all fuelled interest in the ethical aspects. More and more attention is being paid on business ethics.2.1 Definition of Corporate GovernanceTraditionally, it is defined as leadership and control of a firm with the aim of securing the long-term survival and viability of th
6、at firm. “Corporate governance is the system by which companies are directed and managed. It influences how the objectives of the company are set and achieved, how risk is monitored and assessed, and how performance is optimized. Good corporate governance structures encourage companies to create val
7、ue (through entrepreneurism, innovation, development and exploration) and provide accountability and control systems commensurate with the risks involved.” (Quoted from ASX Corporate Governance Principles and Recommendations) Sometimes corporate governance is regarded as a control mechanism that ens
8、ures the optimum use of the human, physical and financial resources of an enterprise. Complexity increases if we embed the economic approach of corporate governance in a philosophical context. Economic sciences have failed to provide a clear definition of the corporate governance concept.2.2 Relatio
9、nship between Business Ethics and Corporate GovernanceBusiness ethics is defined as the application of a moral code of conduct to the strategic and operational management of a business. Business ethics and therefore business morality generally result from an individuals own moral standards in the co
10、ntext of the political and cultural environment in which the organization is operating. Johnson, Scholes and Whittington (2006) divide business ethics into three levels: the macro level, the corporate social responsibility level and finally the individual level. At the highest (macro) level, we ask
11、the fundamental question of the role of business in society and what governance model works best to deliver the most benefits in a moral and responsible way. At the corporate level, the interpretation of those rules and standards is often what defines business ethics, affected by the specific circum
12、stances and socio-cultural context in which the business or public sector organisation is operating. At the individual level, this separation creates a distinct ethical model - business ethics - which, depending on factors like personality, peer pressure and the socio-political environment, can be c
13、loser or further away from the individuals own moral/ethical code of conduct.Every organization, as they grow has many stakeholders like shareholders, employees, customers, vendors, community, etc. Business ethics and corporate governance are two significant factors that impact a company and how it
14、operates. Business ethics is the application of general ethical principles to business dilemmas and encompasses a broader range of issues and concerns than laws do, as everything that is legal is not ethical. (Dr Ramakrishnan, 2007) Corporate governance is the internal framework a company designs an
15、d implements to govern and protect those invested into the company. The relationship between business ethics and corporate governance comes from an organizations owner or executive managers, who create the governance and decide which ethical principles employees will follow.3. Examine the ASX Princi
16、ples and RecommendationsThe ASX Corporate Governance Council was formed on 15 August 2002, bringing together 21 groups from disparate business backgrounds and carrying the varying aims and priorities that accompany those constituencies. Companies are encouraged to re-examine their corporate governan
17、ce practices and to determine whether and to what extent the company may benefit from a change in approach, having regard to the companys particular circumstances. The best practice recommendations have been articulated to apply to companies and other types of listed entities. Each principle is expl
18、ained in detail, with implementation guidance in the form of best practice recommendations. Although the Councils recommendations are not mandatory and cannot, in themselves, prevent corporate failure or mistakes in corporate decision-making, they can provide a reference point for enhanced structure
19、s to minimize problems and optimize performance and accountability. (Quoted from ASX Corporate Governance Principles and Recommendations)3.1 Analysis of ASX Principles and RecommendationsThe eight principles are put forward for corporate management and they have different focuses. First, the board s
20、hall be able to provide guidance for the companys development and accountability. The board of directors key purpose is to ensure the companys prosperity by collectively directing the companys affairs, whilst meeting the appropriate interests of its shareholders and stakeholders. In addition to busi
- 配套讲稿:
如PPT文件的首页显示word图标,表示该PPT已包含配套word讲稿。双击word图标可打开word文档。
- 特殊限制:
部分文档作品中含有的国旗、国徽等图片,仅作为作品整体效果示例展示,禁止商用。设计者仅对作品中独创性部分享有著作权。
- 关 键 词:
- report on corporate governance and business ethics
链接地址:https://www.deliwenku.com/p-48536895.html
限制150内