Ethical Governance Assignment Paper
With the easy identification and communication of unethical business activities via electronic media, business ethics and the responsibility of business leaders to conduct business in an ethical manner have become a topic of conversations and legal actions. Nothing is hidden in the modern business world; the ethics surrounding the decision making process are readily visible to the public and directly influence the stability of an organization. In this assignment, you will explore the relationship between ethical governance, transparency, and organizational stability. General Requirements: Ethical Governance Assignment Paper Use the following information to ensure successful completion of the assignment: This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion. Doctoral learners are required to use APA style for their writing assignments.
The APA Style Guide is located in the Student Success Center. You are required to submit this assignment to Turnitin. Refer to the directions in the Student Success Center. Directions: Write a paper (1,500-1,750 words) in which you discuss the relationship between ethical governance, transparency, and the stability of organizations. Include the following in your paper: A research based discussion of the characteristics of ethical governance. How is ethical governance evident in the operations of an organization? A research based discussion of the components of organizational stability. How are they are evident in the organization? A discussion of the ethical responsibility of a business to be transparent in its operations. How much is a business ethically obligated to divulge to the public? A research based discussion that presents the relationship between ethical governance, transparency, and organizational stability.
Ethical Corporate Governance (also called Ethical Governance) has very much become a buzzword these days, just about every company thinks its a good idea and may even proclaim to follow it, but what exactly is it, and how can we know for a sure that a company is practicing what it preaches?
Ethical Corporate Governance refers to the processes and policies that a company has in place to deal with issues concerning how it is administerd and conducts day to day business. It is important to remember that companies exist primary to create a product or service, which is used to generate profit. However that intention must be balanced with controls that ensure a company pursues profit without crossing over the line into the realms of unethical behavior.
In the past many companies may have exploited their market positions to inhibit competition or even threaten local populations, ethical corporate governance exists to prevent this happening.
A corporate governance policy should also cover the expected conduct of senior members of a company, for example the chief executive officer, board of directors and other senior management, who are often seen as exempt from the normal policies applied in the company.
Corporate governance is a multi-faceted subject with many layers of complexity. An important part of corporate governance deals with accountability, fiduciary duty and mechanisms of auditing and control.
Investors may only be concerned with a companies performance and earnings, but bad corporate governance can be symptomatic of greater problems with the company. For example, before the collapse of Enron, the company and its associated traders are believed to have artificially inflated the price of energy in certain US states, thus increasing their profit margins. While this action alone was not enough to cause teh company to collapse it was a clear indication that internal controls had failed, which of course meant that other much larger abuses were possible, which eventually lead to the downfall of the company.Ethical Governance Assignment Paper
The International Charter is committed to encouraging good corporate governance and all the business certification programs offered by the organization incorporate some element of corporate governance requirement.
Much is written about the role, indeed duty, of the board in setting the ethical values of the organization Ethical Governance Assignment Paper. A board is responsible for determining, articulating and communicating the values and standards of the business, and for ensuring that the policies, procedures and controls in place act to embed, rather than hinder, ethical values throughout the business.
But can boards demonstrate that they are committed to ethical standards and their application to the way they govern and conduct themselves?
The business case for business ethics has been well demonstrated through the costs and impacts of the repeated high profile cases of corporate greed and misconduct. Often those integrity failures are a result of senior individuals crossing ethical boundaries as well as ignoring or circumventing the rules set out in law.
In today’s environment, stakeholders have high expectations that companies should be run in accordance with good corporate governance practices – it is the directors which bear ultimate responsibility for the business. So if corporate governance lies at the very heart of the way businesses are run, it is imperative that ethical values should be part of what makes those hearts beat.Ethical Governance Assignment Paper
The right choices
Questions of ethics, or the “right way to run a business”, are inherent in all aspects of corporate governance and in every board decision and action. These include the discretionary decisions a board takes to deliver on its duties as set down in law, and demanded by shareholders and other stakeholders. And the choices a board makes within the core business strategies that they pursue and the way they direct the business as a whole.
Boards take decisions which have far-reaching consequences and directly affect the lives of their employees and other stakeholders, a recent example being tax avoidance.
But business ethics also includes the way the board conducts itself and the way board members choose to behave in carrying out their role. The culture of an organization will be strongly influenced by the nature as well as the quality of the leadership shown by the board.
It should go without saying that members of boards should have personal integrity, as well as being champions of the company’s values.
Principles and terminology
The imperative for ethical behaviors and practices within the boardroom has arguably never been more important. But new research from the Institute for Business Ethics – A Review of the Ethical Aspects of Corporate Governance Regulation and Guidance in the EU – has found that explicit reference to ethical principles and terminology has generally been absent from corporate governance guidance and regulation both at the EU level and within most member states.Ethical Governance Assignment Paper
Although the research found similarities in general corporate governance principles and requirements, a comparison of explicit ethics drivers was not actually possible as they were not evident. This lack of explicit engagement and encouragement, if not requirement, for ethical standards would seem to undermine the imperative for integrity, honesty and accountability in the boardroom.
The continual expression, communication and demonstration of ethical values and practice are essential if a board wishes its organization to operate in line with its core values, and to enjoy the benefits which doing business ethically can bring. At every opportunity, all directors should be encouraged to communicate the values and the importance of their application to the company.
Communication is not just about words: “walking the talk” is important too. It means applying the code of ethics to directors’ behavior, as well as staff conduct. How does the board handle conflicts of interests? Is there diversity in the board? Is remuneration and recruitment fair and transparent?
Smart corporate practice
Attention to corporate ethics is increasingly a core feature of boardroom agendas in practice. Leading edge companies recognize business ethics, sustainability and social responsibility as characterizing the right way to run a business as well as being essential for long term success.Ethical Governance Assignment Paper