Cgbe 1

Corporate governance is concerned
with holding the balance between

economic and social goals and
between individual and community
goals.
FEATURES OF CORPORATE GOVERNANCE
corporate governance assure adequate and appropriate system of
controls within a company.
It restrict individual to be much powerful in the corporation.
 corporate governance ensure to be better relationship between
companies management and its shareholders, employees and other
stakeholder.
It assure transparency and accountability in the corporate world.
PLAYERS IN CORPORATE
GOEVRNANCE
SHAREHOLDERS
MANAGEMENT
CUSTOMERS
SUPPLIERS
FINANCIERS
GOVERNMENT
SOCIETY
Importance of Corporate
Governance
Expected to disseminate
It acts as an important the information in a
instrument of investor It prevents insider timely and proper
protection. trading. manner and ensures that
till such information is
made public.
PRICIPLES OF CORPORATE
GOVERNANCE
FAIRNESS
ACCOUNTABILITY
LEGAL COMPLIANCES
TRANSPERANCY
UTMOST ETHICAL CONDUCT

BUSINESS ETHICS
• Business ethics is concerned with truth and justice and has a
variety of aspects such as expectations of society, fair
competition, Truthful and non competitive advertising, public
relations, social responsibilities, and corporate behavior in the
home country as well as abroad
• Ethics can be stated as the “ discipline dealing with what is
good and bad and with moral duty and obligation”.
Types of Business Ethics
Moral management
Moral managers follow the law and the approach of moral

management is in the best interests of the organization, long run.
TYPES OF BUSINESS
ETHICS
Amoral management
• This approach is neither immoral nor moral. It ignores ethical

considerations. Amoral management can be categorized into two
types – intentional and unintentional.
• Intentional amoral managers exclude ethical issues because they think

that general ethical standards are not appropriate to business.
• Unintentional amoral managers do not include ethical concerns

because they are inattentive or insensitive to the moral implications.
Types of Business Ethics
Immoral management
• Immoral management can be closely identified with

“unethical” practices in business.
• Immoral management not only ignores concerns, it is

actively opposed to ethical behavior
Need for Business Ethics
These basic ethical need compel the organizations to be ethically oriented.
• Values create credibility with public. A company perceived by the public to be ethically and socially responsive
will be honored and respected.
• The management has credibility with its employees precisely because it has credibility with the public.
• An ethical attitude helps the management make better decisions, because ethics will force a management to
take various aspects- economic, social, and ethical in making decisions.
• Value driven companies are sure to be successful in the long run, though in the short run, they may lose money.
• Ethics is important because the government, law and lawyers cannot do everything to protect society.
Ethical Guidelines
• Obeying the rule of law: Obedience to the law, both in letter and in spirit .
• Tell the Truth: To build and maintain long-term, trusting and win-win relationships with relevant stockholders.
• Uphold human dignity: Giving due importance to the element of human dignity and treating people with respect.
• Adhere to the golden rule: “Do unto others as you would have others do unto you”
• Allow Room for participation: Soliciting the participation of stakeholders rather than paternalism.
• Always Act When entrusted with responsibility: Managers have the responsibility of taking action whenever they
have the capacity or adequate resources to do so.
Tools for Ethical Management
• Top management commitment: Top management demonstrates ethical behavior and practices and act as role models
for others to follow.
• Code of Ethics: A formal document that outlines an organization’s primary values and the ethical rules it expects
employees to follow. The code is helpful in maintaining ethical behavior among employees.
• Ethics committee: Appointment of an ethics committee, consisting of internal and external directors is essential for
institutionalizing ethical behavior.
• Ethics Audit: Systematic assessment of conformance to organizational ethical policies, and identification of serious
deviations requiring remedial action.
• Ethics training: Ethical training enables managers to integrate employee behavior in ethical arena with major
organizational goals.
• Ethics Hotline: Whistle blower policy.

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Corporate governance is concerned

with holding the balance between

UTMOST ETHICAL CONDUCT

Moral managers follow the law and the approach of moral

• This approach is neither immoral nor moral. It ignores ethical

• Intentional amoral managers exclude ethical issues because they think

• Unintentional amoral managers do not include ethical concerns

• Immoral management can be closely identified with

• Immoral management not only ignores concerns, it is

These basic ethical need compel the organizations to be ethically oriented.

• Ethics Hotline: Whistle blower policy.

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