Code Of Ethics Of Directors Case Study
2.4 The Purpose of the implementation of Codes of Ethics of the Directors in Corporate Governance.
At the quarter of the 20th century, as technologies like internet have made world business or international business all more viable, the business ethics domestically have grown in importance along with the power and significance of major businesses. So that, directors code of ethics take center stage as a major concern of the modern era as most of the business are dealing with an international business. The earlier opinion stated that a business cannot be ethical, but this opinion is not used anymore in the modern business. Today business has belief that they must be responsible for social since they live and operate within a social structure.
2.4.1 To establish a standard of ethical behavior for directors based on trustworthiness and values.
In order to enhance the standard of corporate behavior as well as corporate governance, code of ethics of directors is formulated. Code of ethics of the director’s aims to establish a standard of ethical behavior for directors based on trustworthiness and values that can be accepted, are held or upheld by any one person. In order to uphold the spirit of self and social responsibility in line with the legislation, regulations and guidelines for administrating a company the stated codes of …show more content…
Corporate governance refers to the process and structure by which the business affairs of the company are directed and managed in order to enhance long term shareholder value through enhancing corporate performance and accountability, as well as taking into account the interest of other shareholder. It means that corporate governance exist in order to ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-agent problems. So, corporate governance is a tool for socio-economic
At the quarter of the 20th century, as technologies like internet have made world business or international business all more viable, the business ethics domestically have grown in importance along with the power and significance of major businesses. So that, directors code of ethics take center stage as a major concern of the modern era as most of the business are dealing with an international business. The earlier opinion stated that a business cannot be ethical, but this opinion is not used anymore in the modern business. Today business has belief that they must be responsible for social since they live and operate within a social structure.
2.4.1 To establish a standard of ethical behavior for directors based on trustworthiness and values.
In order to enhance the standard of corporate behavior as well as corporate governance, code of ethics of directors is formulated. Code of ethics of the director’s aims to establish a standard of ethical behavior for directors based on trustworthiness and values that can be accepted, are held or upheld by any one person. In order to uphold the spirit of self and social responsibility in line with the legislation, regulations and guidelines for administrating a company the stated codes of …show more content…
Corporate governance refers to the process and structure by which the business affairs of the company are directed and managed in order to enhance long term shareholder value through enhancing corporate performance and accountability, as well as taking into account the interest of other shareholder. It means that corporate governance exist in order to ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-agent problems. So, corporate governance is a tool for socio-economic