Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Ethics in corporate governance
Ethics in corporate governance
The role of ethics in corporate governance
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Ethics in corporate governance
The term sustainability means to maintain at a certain level in the business.
The topic given is very subjective. Each and every business is formed to earn profits, to fulfill certain goals and objectives and to contribute to the society. But as and when a business grows, the focus shifts from these noble objects to only remain in the business and get and be on the top of the industry to which the business belongs. For this, an enterprise would undertake any activity, be it legal or illegal. And for reasons like these laws like the Corporations Act, Income tax Acts, etc have been developed so that the businesses have a boundary and know their limits. For the same reason, institutions like internal revenue service have been formed so that the defaulting enterprises can be punished. And if the default continues, they can be blacklisted.
If the businesses would have followed rules and procedures without any strict penalties, there would have been no requirement of these laws nowadays.
In traditional terms, some of the economists argue that businesses are no more than money making enterprise, this idea has been deeply embedded in the American capitalist system and leads the companies to generate short term as well as the long term profits and these are then delivered to the shareholder’s. How well a business functions and operates is only decided by the financial figures that are expressed at the end of each and every year.
The traditional theory also says that the companies do not consider the effects of their decisions on the customers, employees and its partner’s; they are just there to earn profits, no matter what is at stake.
What the traditional theory fails to believe or consider is that when they invest their ideas in t...
... middle of paper ...
...d to an unethical practice of showing inflated revenues, false sales invoices, illegal gains. This led to an increased price of the share of the company. This credit was equally shared by the CPA firm that had conducted its internal audit. Later on, the irregularities were discovered and the company head along with some other member’s was charged with the fraud. The reason that I am quoting this example is that the companies do indulge themselves in illegal activities just to remain in the business.
At the end, I would like to conclude the essay by saying that there is no sure shot answer to the question as to whether company actually contributes to the growth of the shareholder’s value and whether it is true to the legality of the rules, regulations and laws that it claims to abide.
References:
Kanter, 2011: How great companies think differently
Academic week, a compulsory activity for business administration students, talks are given by well-known and successful persons in our society. In order to lets us have different experience to the academic week and widen our vision in the business world, topics of academic week will be changed every year. For this year, ‘Enterprises Development A challenge for Sustainability’ give us an opportunity to understand the importance of sustainability to a firm. Attending three talks in this academic
In recent years, there has been a push for companies to look further than the traditional bottom line. While profit metrics such as net income seem to have some of the strongest reaction in the market, firms have now begun to see that their value should extend past that. As a KPMG report on corporate sustainability defined, “…corporate sustainability is defined as: ‘adopting business strategies that meet the needs of the enterprise and its stakeholders today while sustaining the resources, both human
refer to this as their code of conduct. There aren’t always laws to govern things like ethics. Therefore, it is up to companies to define some of their ethical behavior According to the International Labor Organization, “Different to labor law, business codes of conduct do not have any authorized definition. The concept “corporate code of conduct” refers to companies’ policy statements that define ethical standards for their conduct. There is a great variance in the ways these announcements are
suppliers; organizations have become responsible for worldwide social welfare and the environmental impact of operations. Within integrated supply chains, managers have looked across traditional boundaries to interfirm relationships to manage risk and advance corporate social responsibility (CSR) requirements, such as sustainability. The buyer-supplier relationship connects companies through supply chains. Purchasing managers create a link between the internal functions and the external stakeholders of
economical and political factors of external business environment as well as the introduction of complex and globalized business practices has influenced a number of businesses to accept the practice of continuous change management in terms of coping up with the competitive environment. The illustration of organizational change management has described to basic practices such as planned and emergent approaches. Planned approach has been considered as a traditional and systematic process of implementing
strategic project management is on the rise within the discipline of project management. The general idea about strategic project management is that project management teams must learn how to satisfy the business aspect of their project and support their company’s business strategy and sustainability while considering the time, budget and operational goals. Even though this approach is gaining popularity it has not become explicit in project implementation. The main aim of this paper is to provide a
the company offer its cost structure directly to the consumers on the website. Strategy of Everlane As mentioned the most strategy which is different from traditional retailing is “transparent retail”. Everlane breaks down its cost of making one pieces into material, hardware, labor, transport and duties and it also compared to the traditional apparel retailer. Because it is an e-commerce brand so it has the price advantages which means customers can buy the high-quality products with affordable
Introduction: The emerging field of social entrepreneurship calls for a need for new integrated theories to contribute to the discipline and help grow the field. Social Entrepreneurship has been a topic of academic interest for the past few decades; however there has been little scholarly output in mainstream journals (Short, Moss, & Lumpkin 2009).Social entrepreneurship is commonly defined as “entrepreneurial activity with an embedded social purpose” (Austin et al. 2006). Social entrepreneurs play
did not even exist one hundred years prior. Issues, such as the Great Depression, both World Wars, racial equality, gender equality, rebellion against traditional values, and the AIDS epidemic. Each generation was defined by how well they, as a whole, handled the given situation. The current problem that bedevils the modern generation is sustainability and its effect on the environment. This issue has been festering since the dawn of industrialization, but only now have its effects truly threated the
CSX Corporation Name: Institution: CSX Corporation Introduction CSX Corporation is amongst the leading transportation suppliers within the nation. The Intermodal and Rail business of the company avail rail-based services that included traditional rail service and intermodal trailers and containers transport (CSX Cooperation, n.d). The transportation network of the company comprises of approximately twenty-one thousand track route miles covering, District of Columbia and Provinces of
Co-teaching can help in incorporating sustainability if they have not trained background. Green is required in all related fields of planning, organizing irrespective of functional areas like marketing, finance, operations or human resources. A comparison and analysis of the traditional practices is being questioned and new ways of green techniques are incorporated. An interactive web-based syllabus eases interdisciplinary
only. The triple bottom line consists of three P’s: people, planet and profits, meaning that the social, environmental and environmental performance is considered altogether. (Relumination, 2016) The triple bottom line is incorporated into the business practices of Patagonia and it publishes an annual benefit corporation report to show the efforts they take to create a public benefit. Patagonia works constantly on creating social benefit. Patagonia seeks to improve the lives of the people producing
2010:134). Briefly, CSR encompasses corporate practices that operationalise the relationships with and impacts on stakeholders and the environment (Waddock, 2004:9). While the perspective entails voluntariness (CEC, 2001), there is an established business case for CSR. Literature recognises CSR profitability in the long term, especially in the form of brand loyalty, employee satisfaction, or operational efficiency (Pivato et al, 2008). CSR positively affects economic performance, employee engagement
retail chains have closed down their business operations at a high rate of more than 30 stores per day, as the economic depression continued. The United Kingdom’s high street went suffering from the declining consumer confidence and spending as a consequence. Some retail outlets have been put under receivership as well as under administration. High-profiled administrations included retail giants such as Woolworths, Comet and Blockbuster. High costs of doing business in the UK further led to the decline
Stakeholder theory recognizes that organizations have obligations not only to shareholders but also to these other interest groups. Also, Stakeholder theory has two branches which are the ethical and managerial. The ethical branch concerns the right of all the stakeholders to assess the information and rights in order not to be violated