On the other hand, Jeffrey L. Seglin argues that the problems in American businesses are a combination of ethical and legal problems. The ideas of ethical problems in corporate America are illustrated differently in both Frohnen and Clarke’s essay and Seglin’s essay. In Bruce Frohnen and Leo Clarke’s essay, "Scandal in Corporate America: An Ethical, Not a Legal, Problem" they discuss their views of American businesses and the little honesty that these businesses have. They claim how important honesty is within businesses and how it will help our public’s well-being and corporate America. They view American business officials to be greedy and many of their jobs just consist of helping businesses find their way around the laws.
349). Whereas, Ho (2012) notes the Organization for Economic Cooperation and Development (OECD) defines corporate governance as “a set of relationships between a company’s management, its board, its shareholders, and other stakeholders, as well as the structure through which…the means of attaining corporate objectives and monitoring performance are determined” (p. 464). Corporate governance requires the participation from the board of directors, management, and even shareholders. They are responsible for defining the rules and regulations for decision-making and enforcing those rules (p. 2). Corporate governance is the combination of control functions that work unified in order to control the relations among all of those invested in the company; shareholders, management, and employees (p. 2).
Introduction The term “Marketing ethics” has been defined as how moral standards of right and fair practices are implemented into organization and strategy (Murphy et al., 2005). In fact, marketing and ethics are usually seemed as a contradiction, because the purpose of marketing is monetary-oriented. The ultimate goal for business is making profit or generating sales, while ethics is moral and societal, such as contributing to the society. Introcaso et al (1998) quotes Michael Novak’s (1998) words that business might fail in the short term if introducing ethical model in competition, because high moral standards increase costs. Consequently, numerous companies launch misleading advertising, manufacture unsafe products, exploit labour right and waste natural resource for self-interest.
The multinational corporations, Wal-Mart, Nike, and Gap, had negative impact on the world through human rights violations, through their control of the media, and by putting smaller local companies out of business. Corporations are often major violators of human rights. "As human rights advocates begin to address corporate crime, they often do so in the absence of any serious government support. As a result, they are tempted to fall back on voluntary codes of conduct adopted by the corporations themselves. At best, this self-monitoring represents "enlightened self-interest" by companies looking for a stable investment climate.
They also thinks that its become an edge on those organizations who are not following these rules. and other reason was companies have huge human capital and they can use them in positive way if they follow Cooperate social responsibility rule. as they are equipped with all the necessary resources. Corporate social responsibility clearly shows that it is unethical for these corporations to be making profits at the expense of the environment and other aspects of the human life. Corporate social responsibility is therefore viewed as a control mechanism to ensure that multi-corporations are responsible for their actions (Werther and Chandler
For effective corporate governance, the policies should be as such that the director’s of the company should understand their duties and responsibilities towards the company and should act in the interest of the company. HISTORY OF CORPORATE GOVERNANCE The concept of corporate governance
Which eventually make Enron’s become one of the largest corporate scandal frauds. For the corporate culture in Enron, Enron employees and internal executives are largely influenced by groupthink. In Enron’s corporate culture, Enron’s members usually misuse motivation to help company achieving lofty growth goals. Enron promoted individuals who were highly motivated by monetary rewards and promotions (Bills 2001, paras 6-9). For example, company provided an incentive to employees to take risks on making profits, no matter the actions is ethical or not.
This can be manifested in an ability to attract and retain customers and employees, achieve strategic alliances, gain the support of financial markets and generate a sense of direction and purpose. Corporate identity is a strategic issue. Corporate identity differs from traditional brand marketing since it is concerned with all of an organization’s stakeholders and the multi-faceted way in which an organization communicates.” (Ballmer, Bernstein, Riel et al. 1997) Thus, this statement highlights the multidisciplinary nature of the area and its difference from brand management. Another interesting research that recent academicians have developed is that corporate identity refers to an organization’s unique characteristics which are rooted in the behaviour of the internal stakeholders i.e., the members of the organization.
Corporate governance is the system by which companies are directed and controlled. De Kluyver’s book focuses on corporate governance in large, pubic held companies. His main point of concern is the distinction of the various roles and responsibilities that CEO’s, investors, managers and other stakeholders in the running of corporate companies. The author also focuses on the rules and regulations that govern the operation of corporate companies with regards to the rights and responsibility of each of the participants in the corporations. De kluyver also stipulates the procedures that corporations ought to emulate in decision making and he goes ahead highlight the significance of the participants in the corporations to encourage consultations before arriving at the various corporate decisions.
The board is responsible for directing and steering the company. The board accomplishes this by business planning and risk management through proper corporate governance.