Primary Characteristics Of Corporate Governance

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Corporate Governance
Corporate Governance refers to a set of rules, practices and processes of which a business/company is directed and controlled. Corporate Governance enforces balancing the interests of a company’s many stakeholders including: shareholders, management, customers, suppliers, financiers, government and community. Since Corporate Governance also provides the framework for attaining a business’s objectives it affects basically every part of management from action plans and internal controls to performance measurement and corporate disclosure. It is also defined as a framework as mentioned in a previous sentence by which board of directors ensures accountability, fairness, and transparency in a company’s relationship with its
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The Informant conveys a message of how significant good corporate governance is in terms of the company itself (ADM) being involved in price fixing and having an injected virus into the company’s system which greatly impacted consumers due to how they are now limited in terms of taking part in a free market due to how now the business will struggle in terms of having their product at an extremely high price and therefore the consumers are also greatly affected due to them also having to purchase the product at a high price.
Social Responsibility
Social Responsibility is defined as an ethical framework that suggests that an entity whether it’s an individual or an organization has an obligation to act for the benefit of society and its community. It is a duty every individual has to have to do in order for them to maintain a balance between economy and ecosystems therefore it involves not only business organizations but also everyone whose action impacts the
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• Narrative-based theory: narratives/stories are used to complement each other in order to lead to an understanding of the difference between right and wrong.
• Utilitarian theory: what is right is that which is right for the greatest number of people
• Virtue-based theory: emphasize that moral behavior pre-supposes a well-formed character.
Business ethics may be described as the study of hoe personal values and principles are applied in a business situation. There also some ethical issues in the corporate world as follows:
• Stealing from the company
• Unauthorised payments
• Unrealistic pricing
In the movie it is pretty clear that price fixing is involved and it is both illegal and unethical. Whitacre had been playing a role in being unprofessional and unethical in the movie as a whole as we had discovered the crimes he had committed along with ADM. He had lied continuously to cover up his tracks but that had caught up to him indicating a sense of carelessness within him forming part of unprofessionalism coming from Whitacre because as the movie had progressed we saw that he had also been stealing money by committing fraud . Whitacre clearly went along with the consequence based theory due to the fact that he lied to the FBI to distract them from finding about his crimes therefore that made him feel as if his actions were
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