Ethics and Governance

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Ethics and Governance
Name:
Course
Professor’s name
University name
City, State
Date of submission

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INTRODUCTION
Student 1
Legal corporate governance compliance
Introduction
Is a combination of rules, regulations, laws and procedures by which organizations and
companies are operated. It’s also a set of statutory laws and regulations that provide a basis
through which organizations are run and managed effectively.
Corporate governance is defined as the means by which the rights of the company, the
shareholders and the stakeholders are ensured, to ensure that the parties act responsibly. Its
essence lies in the separation of roles between the decision makers and the people entrusting
decisions to third parties.
Corporate Governance objectives are good governance practices that deal with
transparency of information, ethics, control, monitoring and basic principles of the best form of
governance, its ultimate purpose is to ensure effective, entrepreneurial and prudent management
that can deliver the long-term success of the company or organization (Hass, Tarsalewska and
Zhan, 2016). It’s through corporate governance that companies are directed, run and controlled.
Boards of directors are responsible for the governance of their companies. The shareholders’ role

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in governance is to appoint the directors and the auditors and to satisfy themselves that an
appropriate governance structure is in place.
Student 2
Ethical corporate goernance compliance has greater impact social responsibility.
Ethical compliance has proven to have more impact because it has clearly laid out mechanisms
to restore confidence and has the ability to build trust. Secondly, legal corporate governance
compliance may lead to legal absolutism where there is an attempt to legislate morality by
substituting accountability for responsibility.
Rebuttal Student 1
Legal corporate governance has less impact on corporate responsibility
Although Corporate Governance should only be associated with highly effective
management structure, to some extent it is only effective if it produces continuous positive
results at all internal and external levels of the organization, which is essentially made up of
good performance in both legal corporate governance and ethical governance. While ethics is a
branch of moral values that govern people about what is right and acceptable in the society, legal
corporate governance involves a series of set statutory laws that help with the management
(Zhang, 2018). Although these laws are important, they do not have such great impact on
corporate governance as compared to ethical corporate governance compliance. Ethics are
different from legal laws because they indicate and specify on what is wrong and what is right.
For instance, ethics in an IT firm should be about what the society s opinion is on use of

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computers, social media access on third parties etc. Basically an organization will majorly
consider the ethical responsibilities more as compared to those that are legal.
The duties of the board of directors are stated which include setting the company’s
strategic objectives, providing the leadership to put them into effect, supervising the running and
management of the business and reporting to shareholders on their overseer.
Such legal laws as stated include:
How the board is formed and operated, it specifies on the procedures that are taken to form
the board, the qualifications of the board members and their roles ,it also clearly defines that the
board is prohibited in coming in between management and operating decisions and is only
allowed to focus on its supervisory activities, although there is no clear definition between
supervisory and operational decisions.
It also dictates the company’s rights and privileges ,the member’s rights and privileges are
also well defined. The expectations of the management and what is expected of the company
towards its shareholders and the society at large (Shi, Connelly and Hoskisson, 2017).Through
legal cooperate governance, constant reviews and assessment of the members of the board and
board committee is carried out, this is to ensure transparency and accountability of members of
the board.
Rebuttal Student 2