Corporate Governance and Ethics
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
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
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