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Corporate Governance and Ethics Report

   

Added on  2020-04-07

16 Pages4460 Words192 Views
Running head: CORPORATE GOVERNANCE AND ETHICSCorporate governance and EthicsName of the StudentName of the UniversityAuthor name
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Executive SummaryThe report puts light on the various policies that are taken up by the moral agents to create a better image of the company in the market. This is mainly the public relation sector of the company that looks after the issues that deal with the image building and maintaining in the public sphere. The corporate governance policies enable the organization to create a positive relationship with its shareholders, employees and the people in the market who are connected with the company. The purpose of this report is to focus on the various ethical practices of the company moral agents that deter the sustainability of the organization in the market. WorldCom and Bernard L. Madoff Investment Securities are the organizations that ceased to work in the 21st century due to discrepancies in the ethical dimension of the company’s moral policies. To conclude, the report presents the core issues that lead to the fallof these companies in the market.
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Table of ContentsIntroduction................................................................................................................................4Discussion..................................................................................................................................5Ethical Theories.....................................................................................................................5Application of ethical theories...............................................................................................8Bernard Madoff..................................................................................................................9Bernard Ebber (WorldCom fraud)...................................................................................10Conclusion................................................................................................................................12Reference list............................................................................................................................14
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IntroductionCorporate governance refers to the set of policies and conducts which are used by anorganization to direct and control the entire work process. The way in which authority andaccountability flow between the stakeholders, Shareholders, CEOs and the various managersin the company is known as corporate governance (Tricker & Tricker, 2015). The managersand shareholders have a common interest in respect to the company’s growth (Beery &Wilcox, 2015). However, the problem occurs when these interests diverge in their intentionsand take a personal turn rather than the shared common goals. An organization must have oneinterest group that follows the common interest of company’s growth so that in return theyare served with better incentives for their hard work in taking the company to the dreamposition. The situation worsens when the interest groups are more than one and people areenriching themselves rather than the company. The managers or the moral agents of thecompany are far more expert and fluent with the aspects of management than theshareholders (Glinkowska, 2017). This can lead to them taking decisions that are meant forpersonal benefits rather than long-term benefits of the company. The report aims to shed lighton the various issues of corporate governance together with the ethics that are to bemaintained by the moral agents of the company. WorldCom and Bernard L. MadoffInvestment Securities faced decline due to their misconduct towards the ethics of corporategovernance. The moral agents, namely Bernard Ebbers and Bernard Madoff of the respectivecompanies will be taken into consideration for the report. The success of a company in themarket and the extent of trust it garners among its shareholder depends on the various valuesthat are to be maintained by the company agents to ensure stability in the market. The moralagents have the immense duty to abide by the ethics and to understand that they areresponsible towards the all those who are associated with the company (Harris, 2013). The
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