Professional Documents
Culture Documents
Business Ethics
Definitions
Ethics involves a discipline that examines good or bad practices within the context of a moral duty
Moral conduct is behavior that is right or wrong Business ethics include practices and behaviors that are good or bad
Environmental Management and Ethics in Management
Ethical Problem
1950s
Time
Early 2000s
CORPORATE GOVERNANCE
Definition
An internal system encompassing policies, processes and people, which serves the needs of shareholders and other stakeholders, by directing and controlling management activities with good business savvy, objectivity and integrity. Sound corporate governance is reliant on external marketplace commitment and legislation, plus a healthy board culture which safeguards policies and processes'. By: Gabrielle O'Donovan
Environmental Management and Ethics in Management
Corporate governance is the set of processes, customs, policies, laws and institutions affecting the way a corporation is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. The principal stakeholders are the shareholders, management and the board of directors. Other stakeholders include customers, creditors (e.g., banks, bond holders), employees, suppliers, regulators, and the community at large.
Environmental Management and Ethics in Management
Corporate governance is a field in economics that investigates how to secure/motivate efficient management of corporations by the use of incentive mechanisms, such as contracts, organizational designs and legislation.
Corporate governance is a term that refers broadly to the rules, processes, or laws by which businesses are operated, regulated, and controlled.
Internal factors defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as consumer groups, clients, and government regulations succeeded in attracting a good deal of public interest. the economic health of corporations and society.
Corporate governance deals with the ways in which suppliers of finance to corporations assure themselves of getting a return on their investment
Environmental Management and Ethics in Management
Business Impact
environment
society
Emissions Business Impact Energy Use Product Life-cycle Product Value Wealth Generation Productive Employment Ethical Trading
Economic
Cont
Integrity and ethical behaviour: Ethical and responsible decision making is not only important for public relations, but it is also a necessary element in risk management and avoiding lawsuits. Organizations should develop a code of conduct for their directors and executives that promotes ethical and responsible decision making. It is important to understand, though, that reliance by a company on the integrity and ethics of individuals is bound to eventual failure. Because of this, many organizations establish Compliance and Ethics Programs to minimize the risk that the firm steps outside of ethical and legal boundaries. Disclosure and transparency: Organizations should clarify and make publicly known the roles and responsibilities of board and management to provide shareholders with a level of accountability. They should also implement procedures to independently verify and safeguard the integrity of the company's financial reporting. Disclosure of material matters concerning the organization should be timely and balanced to ensure that all investors have access to clear, factual information.
Issues involving corporate governance principles include: internal controls and the independence of the entity's auditors oversight and management of risk oversight of the preparation of the entity's financial statements review of the compensation arrangements for the chief executive officer and other senior executives the resources made available to directors in carrying out their duties the way in which individuals are nominated for positions on the board dividend policy
Internal corporate governance controls monitor activities and then take corrective action to accomplish organisational goals. Monitoring by the board of directors Balance of power Performance-based remuneration
External corporate governance controls encompass the controls external stakeholders exercise over the organisation. competition debt covenants demand for and assessment of performance information- financial statements government regulations managerial labour market media pressure takeovers
In recent years, corporate governance has received increased attention because of high-profile scandals involving abuse of corporate power and, in some cases, alleged criminal activity by corporate officers. An integral part of an effective corporate governance regime includes provisions for civil or criminal prosecution of individuals who conduct unethical or illegal acts in the name of the enterprise.
References
www.encycogov.com en.wikipedia.org/wiki/Corporate_governance www.iba.org.in/events/1.N. searchfinancialsecurity.techtarget.com/sDefinition
www.icmrindia.org/courseware/Business%20Ethics%20