Corporate Governance and Ethics

Topics: Board of directors, Ethics, Corporate governance Pages: 45 (14398 words) Published: October 2, 2013

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 world economic crisis that was caused by the irresponsibility and outright gluttony of those charged with the privilege of managing multi-national corporations and overseeing world markets. In recent years, well publicized scandals have resulted in public outrage about deception and fraud in business. The cooking of accounts by major corporations such as Tyco is a fine example of how corporation executives hypnotized their shareholders with false financial reports indicating growth and huge profits. A façade of success, was created with the executives awarding themselves million dollar bonuses, with the CEO, Dennis Kozlowski indulging in excessive luxuries such a $15 million vintage yatch and a $2 million birthday party for his wife, when in reality, the company was a sinking ship plagued by insider trading and misappropriation of funds.

This paper attempts to provide understanding as to how ethical decision making ought to be conjoined Siamese twins, where one cannot survive without the other. The ability to recognize and deal with complex business ethics issues is a skill that cannot be taken for granted by corporation managers. Corporate institutions both public and private must be founded on the principles of accountability and transparency. This is the only way to guarantee the going concern of businesses as well as growth and development of the society as a whole.

CHAPTER 1

FRAMEWORK FOR UNDERSTANDING ETHICAL DECISION MAKING

The management of corporations is generally complex in nature. From the top management to the subordinate staff, different structures of command are usually in place to provide guidance on how to execute responsibilities as well as how to relate with every player, both internal and external, that contributes to the daily running of the business.

The usually wide hierarchy and chain of command that defines most...

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
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Hilton hotels Corporate Governance Essay
  • corporate governance Essay
  • Essay about Corporate Governance
  • Business Ethics and Corporate Governance Essay
  • Corporate Governance RBS Essay
  • Corporate Governance in the Hershey Company Essay
  • New Trends in Corporate Governance Essay
  • Ethics and Governance Essay

Become a StudyMode Member

Sign Up - It's Free
Movie Trailer Kevin Hart | Revista Investigación y Ciencia - Edición 2017 | триллер