Corporate Governance and Ethics: Decent Work and Economic Growth

Corporate Governance and Ethics 1
Corporate Governance and Ethics
Name
Instructor
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Corporate Governance and Ethics 2
Contents
Corporate Governance and Ethics...................................................................................................3
1.0 INTRODUCTION.....................................................................................................................3
1.1 Corporate Governance...........................................................................................................3
1.2 Sustainable Development......................................................................................................4
1.2.1 Environmental Sustainability..........................................................................................4
1.2.2 Social Sustainability.......................................................................................................5
1.2.3 Economic Sustainability.................................................................................................5
2.0 DECENT WORK AND ECONOMIC GROWTH....................................................................5
2.1 Decent Work..........................................................................................................................5
2.2 Economic Development.........................................................................................................6
2.2.1 Measures of Economic Growth......................................................................................7
2.2.2 Economic Growth Phases...............................................................................................8
2.3 Involved Stakeholders...........................................................................................................9
2.4 Objectives of the Goal.........................................................................................................10
2.4.1 Attention towards Youth Unemployment.....................................................................11
2.4.2 Why Descent Work is Important..................................................................................12
Reference.......................................................................................................................................14

Corporate Governance and Ethics 3
Corporate Governance and Ethics
1.0 INTRODUCTION
1.1 Corporate Governance
By definition, corporate governance is a system that controls and directs companies. Corporate
governance also ensures the effective facilitation as well as the prudent and entrepreneurial
management to ensure long-term delivery of company success. In other words, it is all about
balancing the stakeholders’ interests (Christie and Warburton, 2017). Otherwise, because
corporate governance creates a framework through which the objectives of a particular company
are met, it forms the backbone of management from internal controls to action plans as well as
corporate disclosure and performance measurement (Bullard, 2017).
There are two sets of governance, good and bad. The bad type of corporate governance reduces
the level of reliability of an organization, its obligations to shareholders, as well as integrity.
Such factors have overall implications for an organization's financial health. Organizations that
don’t choose auditors with a scale that are appropriate or otherwise, don’t sufficiently cooperate
with auditors, are likely to publish noncompliant or spurious financial results (Collard, 2015).
Apart from that, organizations with poor executive compensation packages are unable to come
up with an optimal incentive for their workers. Other aspects of bad corporate governance
include organizational boards that are poorly structured which tend to make it hard for officers to
oust incumbents that are ineffective (Cock and Hopwood, 2016).
On the other hand, good organizational governance includes the creation of governing rules that
are transparent all of which directors, shareholders, and officers appreciate and incentives

Corporate Governance and Ethics 4
aligned to (DETR, 2015). Many world organizations strive to achieve high organizational
government standards. In the business world, it is not all about a company’s ability to generate
profits that is important but its capability of demonstrating proper corporate citizenship via the
promotion of ethical behavior, environmental awareness, and sound practices within the
organization (Daly and Cobb, 2017).
1.2 Sustainable Development
Sustainable development is made up of two important words; “sustainable” and “development”
By definition, sustainability refers to a form of development that ensures that the current needs of
an organization are satisfied without having to necessarily compromise future generation’s
capacity. In other words, sustainability guarantees the existing balance that occurs between
environmental care and economic growth as well as social well-being (Devall, 2013). On the
other hand, sustainable development refers to a concept geared towards finding solutions
associated with population growth and industrialization problems. There are three categories of
sustainable development. Such categories are environmental sustainability, social sustainability,
and economic sustainability (Daly, 2015).
1.2.1 Environmental Sustainability
At this level, sustainability ensures that nature is prevented from being used as an inexhaustible
source of resources but rather protected or rationally used. This form of sustainable development
includes aspects of renewable energy investments, environmental conservation, saving water,
innovation in sustainable architecture and construction, supporting sustainable mobility, as well
as contributing to the achievement of environmental sustainability in every front (Devall, 2013).