...Corporate Governance and Ethical Responsibility Research Paper LEG500- Law, Ethics, and Corporate Governance May 2013 This purpose of this research paper is to state the importance of corporate governance and ethical responsibility in a business, and to be able to justify the health and safety rights that employees have in corporations. According to Solomon (2010), corporate governance is a keystone aspect of a business, in which companies are directed and controlled. Corporate governance is important in the aspect of maintaining corporate success and not overstating social welfare. A weak corporate governance system can lead to the fall of the corporation, stated by Solomon (2010); the wake of massive collapses due to weak corporate governance has developed an aggressive attention on reforming corporate governance. (Solomon, 2010) Ethical responsibility is the defined by first understanding that ethics is knowing what should be done. Our text reflects that ethics is not one that is governed by legislation or a judicial system however it is based on the critical consciousness which goes into deciding what is right and wrong through a thought and emotional process for a particular situation. Having ethical responsibility in a corporation is vital for the integrity of the company and what the brand stands for. Ethics holds one accountable; insuring that what is right is properly implemented. (Halbert and Ingulli, 2012) In the case of Dr. DoRight, on a daily bases...
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...2014 Source Review In the article ‘Putting ethical practice in corporate responsibility’, Seong (2010) argues that the appreciation(Anerkennung) of business in society puts forward ethical implementation in corporate responsibility as well as the awareness of corporate scandals due to faster distribution via digital channels. The article is relevant to the report question on corporate governance, however, its relevance is limited because the focus is only on one priority of corporate governance. Furthermore, the source is only useful to gain further background information due to a lack of reliable references. The article is relevant to the assessment task, which examines corporate governance and its importance for companies. Seong (2010) points out that companies will attain(erreichen) the gratification(Belohnung) if they recognize(verstehen) the interdependence between corporate responsibility and ethical systems. The more, the correlation between aspects of corporate governance and the worth of corporate responsibility with the result of higher organization’s reward are identified. Moreover, the challenge of connecting the return on investment with the corporate charge into enterprises is presented by the author (2010). The report question’s main focus is on the comprehensive process of corporate governance, hence the source is of limited suitability since it deals only with one principle of the ASX namely ‘Promote ethical and responsible decision-making’. Moreover...
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...What is Corporate Governance Corporate governance has been considered as one of the important aspects in corporation. By definition, is corporate governance is regarded as the investigation of the control of an organisation as utilised by its executives and directors. IN line with this aspect, the directors of organisations are held responsible for their operations and action with their shareholders. On one hand, the authority of the shareholders to affect the behaviour of the organisational directors is limited in practice and is rarely practiced As mentioned by Stapledon (1996), corporate governance can also be regarded as a mechanism that is utilised to be able to direct and control firms and organisations. It can be said that such idea applies to all business industries all throughout the world which include the banking institutions, financial corporations and other forms of industries like the retailing industry. (Davies, 1999).. Corporate governance, has also considered to imply good in the non-moral as ad also the moral sense. Its non-moral applications consider efficient decision making, suitable resource allocation, strategic planning, and other management approach (Monks & Minow, 2001). Nevertheless, in its moral sense good corporate governance has come to noted as the one which promotes an ethical climate that is both morally appropriate per se, and inevitably appropriate in that ethical behaviour in business is reflected in desirable results...
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...The issue of corporate social responsibility has got a lot of attention in the business and political world since the early 1990’s and the major reason behind this was corporate scandals. Organizations had started to realize that the basis on which they were achieving economic growth was unsustainable and hence there was a need to develop a process which would intend at balancing economic growth with environmental sustainability and societal expectations. In fact the origin of corporate social responsibility can be found in the 1950s and 60s whereby successful companies were trying to link corporate social responsibility to the power that business holds in society. The theoretical progresses were subdivided in ethical and accountability and the stakeholder approach to strategic management. CSR can be distinguished from the three terms which are included in its designation phrase and these words are; ‘Corporate’, ‘social’ and ‘responsibility’. Hence CSR can be explained as being the responsibilities that a company undertakes for the society within which it carry out its operations. To be specific, CSR require a business to identify its stakeholders and include their needs and values in the tactical day to day decision making process of the company. Consequently the society within which a business function and which identify the number of stakeholder to which the organization owe a responsibility can be broad depending on the type industry within which it operate. The different...
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...LECTURE OUTLINE I. Stakeholders Define Ethical Issues in Business A. Stakeholders In a business context, customers, investors and shareholders, employees, suppliers, government agencies, communities, and others who have a “stake” or claim in some aspect of a company’s products, operations, markets, industry, and outcomes are known as stakeholders. 1. Stakeholders are influenced by business, but they also have the ability to affect businesses. 2. They apply their values and standards to many diverse issues—for example, working conditions, consumer rights, environmental conservation, product safety, and proper information disclosure—which may or may not directly affect an individual stakeholder’s own welfare. 3. They provide both tangible and intangible resources that are more or less critical to a firm’s long-term success. 4. Individual stakeholders that share similar expectations about desirable business conduct may choose to establish or join formal communities to advocate their values and expectations. 5. Stakeholders’ ability to withdraw—or to threaten to withdraw—valuable needed resources gives them power over businesses. B. Identifying Stakeholders 1. Stakeholders can be divided into two categories. a) Primary stakeholders are those whose continued association is absolutely necessary for a firm’s survival; these include employees, customers, investors, and stockholders, as well as the governments...
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...expectations have pushed corporate decision makers into murky waters when deciding which course of action to take. In an era of instant communication, public distrust, and a multitude of variables to consider before making a decision, leaders must have some form of guideline to help them make choices that reflect responsibility and accountability. The creation and implementation of an official corporate governance policy and internal practice will lead to these critical decisions being made with the good of the whole in mind. Corporate governance can be defined “as a relationship between a corporation and its shareholders” (Cross & Miller, 2012, p. 644). It is also a system of checks and balances between the board, management, and investors to create an efficient and functional business with long term viability and value ("Corporate Governance Best Practices," 2002, p. 8). The concept of adopting a formalized process should be fairly evident. Corporate scandals such as Enron and WorldCom devastated entire corporations as well as national and world financial crisis created by banking and mortgage industries. The government has stepped in and enacted legislation such as Sarbanes-Oxley in an attempt to prevent future occurrences, but is this going to be enough? Corporate governance requires self-regulation and ownership and the decisions of a few that could potentially affect thousands needs to be subjected to a formalized review process. Corporate governance may be set up in three...
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...1.0 Introductions 2.0 Literature review 3.0 Background and history of Development CG The term of corporate governance not just been introduced but it also drew attention of the public about the weaknesses of Malaysian corporate governance practice due to the Asian Financial Crisis in 1997. After 1998, the government of Malaysia decided to adopt the corporate reforms to enhance the quality of good corporate governance practice in the country. The main sources of the Corporate Governance reforms agenda in Malaysia other than Malaysian Code on Corporate governance are the Capital Market Master Plan (CMP) and also Financial Sector Master Plan (FSMP). This sources provides guidelines on the principles and best practices in corporate governance and the direction for the implementation as well as charts for the future prospects of corporate governance in Malaysia. Malaysian Code on Corporate Governance is an initiative that established by the Financial Committee on Corporate in 1998. This committee is consists of both government and also industry. MCCG was introduced on March 2000. This code brought a systematical change in structure of public and also private corporation. The principles underlying the report focus on four areas which are board of directors, directors’s remuneration, shareholders and accountability and audit. Compliance with the code is not mandatory. However, the listed companies in Bursa Malaysia are required to prepare their annual report on how they have...
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...In today’s world organizations are having trouble to maintain long term sustainability. Corporate Social Responsibility is most vital component which helps organizations to benefit themselves while also benefiting the society. CSR is an internal built in process by which organizations manage business process and make efficient use of the resources. It helps to balance the business in terms of economics and social goals. It monitors all business processes. Corporate Social Responsibility by definition, as given by Baker (2004) is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. In this essay I would like to discuss about various Corporate Social Responsibilities policies incorporated by Infosys Limited, India. Infosys is multinational provider of business consulting, technology, engineering, and outsourcing services. Corporate Governance and Shareholders Corporate governance is now focusing on creating a value for shareholder. The shareholders delegate decision making authority to the managers assuming that the managers will take actions which will best suite the shareholders interest. The core objective of corporate governance is to maintain long term relationship with shareholders. A good corporate governance is implemented to ensure: (i) independent and proactive board (ii) independent committee...
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...Executive Summary Phenomenal growth of interest in corporate governance has emerged in recent years. The body of literature on the subject has grown markedly in response to successive waves of large corporate failures. Furthermore, there have been numerous attempts to define what constitutes ‘good corporate governance’ and to provide guidelines in order to enhance the quality of corporate governance. It must, however, be acknowledged that while everyone advocates and wants corporations to maintain ‘good corporate governance’, measuring the quality of corporate governance structures of the Australian companies has been, at best, very difficult. The major contribution of this report is to develop a simple and effective measurement model to rate the corporate governance structures of four companies. In effect, this report hopes to shed light on factors that should be taken into account in order to make sound investment decisions. The report concludes that David Jones would be the best investment decision amongst the four companies. The rest of the report is structured as follows. Section 1 details our ‘Corporate Governance Assessment Model’, comprising of six governance-related factors and associated measures. Section 2 outlines our assessment of the corporate governance quality of each of the four companies, as well a brief description of the company. Section 3 shows our firm’s conducted comparison of the four corporate governance structures. The final section includes the bibliography...
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...management issues1 Identification of management issues2 rationalisation behind unethical behaviour2 corporate governance and social responsibility2 recommendations3 Implementation of recommendations3 references4 1.0 BACKGROUND The purpose of this case study is to identify the management issues of Satyam Computer Services Limited’s, former chairman Ramalinga Raju when he admitted to corporate fraud in 2009, and how these issues could be addressed. Satyam Computer Services Limited, (now known as Mahindra Satyam) is a “leading global information communications and technology company”. (Anon., n.d.) It is a part of the “US $15.4 billion dollar Mahindra group, a global industrial federation of companies of the top 10 business houses based in India”. (Anon., n.d., p. 1; Anon., n.d.)). 1.1 INTRODUCTION TO MANAGEMENT ISSUES “India’s corporate community experienced a significant shock in January 2009 with damaging revelations about board failure and colossal fraud in the financials of Satyam.” (Afsharipour, 2010)Ramalinga Raju and the CFO of the company were charged with “conspiracy, cheating and falsifying records. Raju was also allegedly using salary payments to fabricated employees, in order to steal money from the company.” (Anon., n.d.) This case study will explore the unethical behaviours of Ramalinga Raju, but also how ethical standards and social responsibility factors in with Satyam’s Computer Services Limited’s own management issues, which would have also contributed...
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...main demands for them in the profession is to assess the integrity and the ethical value of their customers or clients. This is indeed very difficult task for the auditors in practice and demands a deep and robust understanding the value of ethics, ethical infrastructure with their products. According to roger D, martin auditors face ethics issues from two perspectives among which one is well known and other being known and appreciated by the people who are familiar with auditors knowing their work and responsibility. The prospective of this is to deal among the ethical foundation of the auditing profession and to show the integrity and get appreciated with the job they do. This indicates ethics prospective as seeking within their profession on how to manage and achieve their targets with no difficulty. The other prospective, which the auditors face, is to understand and get the solution for the current and new clients. This is generally referred as an assessment, which demands a complete attention and understanding of ethics, ethical infrastructure and the solution of that infrastructure. This essay will give a complete picture on why ethics is important to the auditors and how significant is the contribution of auditors is to the effective corporate governance of large Uk companies. According to Ghazala saeed, ethics is derived from the Greek word Ethikos which defines it as custom and habits. Ethical standards are always presented in the profession way which basically aim...
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...1/22/2013 Suneel Younis Mughal Ub 300 92 001 1.0 Corporate Governance Corporate Governance practice aim to ensure that the board is accountable to stakeholders, especially shareholders, and that management is accountable to the board (Lipton, Herzberg & Welsh, 2010).It is helpful to an understanding of corporate governance to appreciate that it is concerned with how corporate entities are governed as distinct from the way the businesses within those entities are managed. Governance relates to where the company is going. Management is concerned with getting the company there. This distinction is central is determining the role and function of the board and its relationship with management (Lipton et al., 2003). In the ASX Corporate Governance is described as “the framework of rules, relationships, systems and processes within and by which authority is exercised and controlled in corporations. It encompasses the mechanisms by which companies, and those in control, are held to account. Corporate governance influence how the objectives of the company are set and achieved, how risk is monitored and assessed, and how performance is optimised (Lipton et al., 2003). There is no single model of good corporate governance. The eight core principles that the ASX Corporate Governance Council believes underlie good corporate governance. 1. Lay solid foundation for management and oversight-Fundamental to any corporate governance structure is establishing the roles of senior executives...
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...FUSION OF CORPORATE GOVERNANCE & CSR PRACTICES BUSINESS ETHICS AND CORPORATE GOVERNANCE Submitted to: Prof. I Sridhar Submitted by: Dhvani Shah (64689) FSB II TABLE OF CONTENTS TOPIC | Pg No. | Introduction | 3 | Concepts | 6 | Conceptual Discussion | 10 | Implementation of CG & CSR in corporate | 18 | CSR/CG framework | 21 | Bibliography | 30 | I. INTRODUCTION: CSR is concerned with the impacts that the activities of an organization have on the social, environmental and economic environment in which it operates. CG is concerned with the manner in which the senior management or Board of Directors direct, manage and control the organization and relate to shareholders. The concepts cannot be mutually exclusive but merge together, each offering a different yet complementary perspective on the activities of an organization, to form a robust strategic business management tool. The aim of the CSR and CG management system is to define, understand and improve the balance between entrepreneurship and ethical practice. Organizations must demonstrate this core organizational...
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...Chapter 2 Corporate Social Responsibility, Corporate Governance and Corporate Regulation 2.1 Introduction CSR is increasingly an essential issue for companies.1 It is a complex and multidimensional organisational phenomenon that is understood as the scope for which, and the ways in which, an organisation is consciously responsible for its actions and non-actions and their impact on its stakeholders. It represents not just a change to the commercial setting in which individual companies operates, but also a pragmatic response of a company to its consumers and society.2 It is increasingly being understood as a means by which companies may endeavour to achieve a balance between their efforts to generate profits and the societies that they impact in these efforts.3 This chapter discusses these issues. First, it describes CSR and its core principles. Second, it describes CG and narrates CG’s convergence with CSR. Third, it highlights how different economies are incorporating CSR notions in their corporate regulation. 1 Jeremy Moon and David Vogel, ‘Corporate Social Responsibility, Government, and Civil Society’ in Andrew Crane et al. (eds), Oxford Handbook of Corporate Social Responsibility (2008) 303; David Vogel, The Market for Virtue: The Potential and Limits of Corporate Social Responsibility (2005); Nada K Kakabadse, Cecile Rozuel and Linda Lee-Davies, ‘Corporate Social Responsibility and Stakeholder Approach: A Conceptual Review’ (2005) 1(4) International ...
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...in ethics, business ethics, governance Understand the relationship between ethics and reputation What constitutes good ethics and good governance? Why are good ethics and good governance important? 3 Changes of ethics trends have brought to the expectation framework Public Expectation （公众的期望） 4 There has been an increasing expectations that business exists to serve the needs of both shareholders and society. Stakeholders’ support are ultimate to the success of businesses or professions to achieve their long-run strategic objectives. A Stakeholder（利益相关者） is: 5 a person, group, organization, member or system who affects or can be affected by an organization's actions. (http://en.wikipedia.org/wiki/Stakeholder) MAP OF CORPORATE STAKEHOLDER ACCOUNTABILITY Shareholders Activists Employees Governments Corporation Customers Creditors Lenders Suppliers Others, including the media, who can be affected by or who can affect the achievement of the corporation’s objectives 6 Figure 1.1 Support of Stakeholders 7 Stakeholders’ support depends on the credibility(可靠 性， 可信性） that stakeholders place in corporate commitments, the corporate’s reputations and the strength of its competitive advantages. How do you get the support from stakeholders? Support of Stakeholders 8 A company’s activities should respect the values and interests of the stakeholders. Corporate directors are expected to govern...
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