Question

How do issues of corporate governance be examined from an ethical perspective?

Illustrate your answer with relevant examples. (600 to 800 words) "My organization is a hospital"

Answer 1

Corporate Governance is the procedure by means of which a corporation guidelines itself. In a nutshell, it is a process of administering a company like a monarchial state which installs its own customs, laws, and policies from the highest to the lowest levels.

In financial terms, Corporate Governance is the collaboration of well -defined rules, processes and laws by which functions and regulations of business take place. Most companies leave no stone unturned to achieve a high degree of corporate governance. It is the responsibility of the board of directors to build a framework for corporate governance that syncs with the objectives and mission of the business.

Failure in corporate governance is a real threat to the future of every corporation. With effective corporate governance based on core values of integrity and trust (reputational value)10 companies will have competitive advantage in attracting and retaining talent and generating positive reactions in the marketplace – if you have a reputation for ethical behavior in today’s marketplace it engenders not only customer loyalty but employee loyalty. Effective corporate governance can be achieved by adopting a set of principles and best practices. A great deal depends upon fairness, honesty, integrity and the manner in which companies conduct their affairs. Companies must make a profit in order to survive and grow, however, the pursuit of profits must stay within ethical bounds. Companies should adopt policies that include environmental protection, whistle blowing, ethical training programs and so on. Such compliance mechanisms help develop and build corporate image and reputation, gain loyalty and trust from consumers and heightens commitment to employees. Ethical compliance mechanisms contributed.

stability and growth since it instills confidence; management, leadership, and administration are essentially ethical tasks. The focus of the virtues in governance is to establish a series of practical responses which depend on the consistent application of core values and principles as well as commitment to ethical business practice. Virtues are powerful means to personal betterment and bring about social reform Because of its strong appeal to reason, it diffuses passion, prejudice, pride and self-interest and is a civilizing force in bringing about justice.
Ethics is truly an essential ingredient for business success and it will continue to serve as the blueprint for success in the 21st century. Many of our traditional role models have fallen, and so it is more important for us to set a strong ethical example for future generations. Some answers to the following questions can serve as a basis for future research endeavors. Were the recent scandals in the US and elsewhere the result of corporate greed.

Trevino et al (1999) study found that specific characteristics of legal compliance programs matter less than broader perceptions of the program’s orientation toward values and ethical aspirations. They found that what helped the most are consistency between policies and actions as well as dimensions of the organization’s ethical climate such as ethical leadership, fair treatment of employees, and open discussion of ethics. On the other hand, what hurts the most is an ethical culture that emphasizes self-interest and unquestioning obedience to authority, and the perception that legal compliance programs exist only to protect top management from blame. With respect to the issues of ethical leadership, Collins (2001) examined the character traits of effective business leaders in the culture of eleven companies that transformed themselves from good solid businesses into great companies that produced phenomenal and sustained returns for their stockholders. Every one of the companies he profiled during the critical period in which it was changing from good to great has what he termed “Level 5” leadership which was his top ranking for executive capabilities. Leaders in all companies exhibited the traits of fanatical drive and workmanlike diligence, but Level 5 leaders were also people of integrity and conscience who put the interest of their stockholder and their employees ahead of their own self-interest.

Byrne (2002) pointed out that following the abuses of recent times, executives are learning that trust, integrity, and fairness do matter and are crucial to the bottom line. Corporate leaders and entrepreneurs somehow forgot that business is all about values and are now paying the price in a downward market with a loss of investor confidence. Byrne (2002) also noted that in the post-Enron, post-bubble world, the realization that many companies played fast and loose with accounting rules and ethical standards and which allowed performance to be disconnected from meaningful corporate values, is leading to a re-evaluation of corporate goals, values and purpose. What’s emerging is a new model of the corporation in which corporate cultures will change in a way that puts greater emphasis on integrity and trust. Such changes would include the diminishing of the single-minded focus on “shareholder value” which measures performance on the sole basis of stock price; the elevation of the interests of employees, customers, and their communities; a reassessment of executive pay to create a sense of fairness; a resetting of expectations so that investors are more realistic about the returns a company can legitimately and consistently achieve in highly competitive markets.

Corporate Governance Examples

When you think of corporate governance, the way a company deals with its stockholders or distributes financial reports immediately comes to mind. While these are important types of corporate governance, there are other types that are important to understand when establishing company policies. In addition, corporate governance strategies can be applied to small businesses, though the roles of those involved may shift slightly depending on company size. It’s always wise for a business to have well-conceived and well-established policies regarding finance, leadership and legalities that are upheld by all involved.

For example, how you select board members for your company and what those board members do, both personally and professionally, may be considered part of your corporate governance policy. It’s essential that board members are carefully chosen and that these individuals refrain from engaging in behaviors that violate the company’s core values or could be considered conflicts of interest. When a board member or upper-level management official who will have any decision-making authority comes on board, they should sign a preset conflict of interest policy to ensure they assume any liability for their own actions during their role with the company.