As is evident from the preceding discussion, the behaviours of directors and the ethics that drive these behaviours have always been important. If given the concepts of globalisation and the growing power of the multi-national, combined with the diminishing ability of government to control business activities are to be the way of the future. The personal standards of directors, boards and firms is to become the new standard in defining how our lives will be formed moving forward. As such as discussed in section four, the selection and motivation of directors will be critical in delivering ongoing economic growth that government is not able to deliver.
5.1 Corporate social responsibility
A growing area that will influence the area of ethics is corporate social responsibility. This is a theory or a belief that business has a larger obligation to society at large and not just beholden to the shareholders that comprise the ownership of the business. This concept has been discussed by several, for the purposes of this paper the works of Handy (Handy, 2002), Kim (Kim, 2015) and Valli (Valli, 1998) were reviewed.
Handy discussed the growing importance of the enlightened stakeholder theory outlined in section four above, Kim’s work centred on the divergent ethical standards that are inherent in each of us and in particular those leading corporations. The cited reasons for the differences are we are all the sum of our past experiences and our personal ethical standards are influenced by this. Valli took this further and posed that we are all capable of learning and able to grow both our awareness as well as improve our ethical decision making by both coaching and other developmental practices.
All of these works make valid poin...
... middle of paper ...
...determine a position on if the governance of companies is more important for world economic growth than the government of countries.
Based on the findings of this report, the dependence that government has on the capital market which is the domain of private enterprise, the growing scope of the globalisation of the world’s economy and the diminishing capabilities of government to control company actions once they reach a certain size. Results in the governance of the board being more important for economic growth than the governance of countries.
The important aspects of this then centre on the frameworks and ethical practices of boards. How they derive decisions that form the basis for strategy and the practices that will be driven by the emerging enlightened stakeholder theory will gain in importance as the process of globalisation continues into the future.
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