Corporate Governance & Ethics Assignment
Added on 2021-06-15
11 Pages3035 Words36 Views
Running head: Corporate Governance & EthicsCorporate Governance &Ethics
Corporate Governance & Ethics 1Executive Summary Corporate Governance can be defined as the policies and procedures used to manage andregulate the operations of the company. It is related with the flow of authority and accountabilityamongst the shareholders, CEOs, senior managers and the board. For most of the companies, thebasic governance framework is shareholders through their voting power authorize the board totake care of their fiduciary interests. The board further appoints the CEO who is held responsiblefor the board. There is a downward flow of power and an upward flow of responsibility in the corporate ethics.The rules which define the policies and principles of corporate governance and the way in whichthe authority and responsibility are allocated are termed as corporate governance and ethics. So,in this report, the Kingfisher Airlines financial crises would be explained in the light of variousethical theories and decision making approaches.
Corporate Governance & Ethics 2ContentsIntroduction.................................................................................................................................................3History background and discussion of the case.......................................................................................3Ethical Decision Making approaches and theories......................................................................................6Ethical decision making approach relevant to the issue...............................................................................7Conclusion...................................................................................................................................................8References...................................................................................................................................................9
Corporate Governance & Ethics 3IntroductionHistory background and discussion of the case‘From bang to bust: The Kingfisher Story. ‘Kingfisher Airlines Limited was an airlines groupestablished in India which operated by its parental corporation United Breweries Group. Theparent company had invested its 50% stake in the low budget airlines Kingfisher Red. Till theyear 2011, it was the second biggest airlines in the national airlines of India. But to its bad fate, itincurred heavy losses and had to withdraw itself from the market in 2012. It was established inthe year 2003 and since then it was incurring heavy losses till it got listed in 2006(The Hindu,2017).Its chairman Vijay Mallya is an Indian businessman and a former Politian. He was once calledthe ‘King of Good Times ‘. He and his company were involved in financial controversies andscandals since 2012. Kingfisher has been the unfortunate recipient of a great press of timerecently. In 2006, a year after the launch of the airlines, the Mumbai branch of IDBI Bank got aproposal from the Kingfisher Airlines that it required funds for purchasing anaircraft .Afterwards in 2009, the bank decided to provide a loan of Rs. 900 Crore . A group ofaround 17 banks are trying to collect loan amounting to around Rs7000 crores through whichMallya had tried to gain 100% or partial shareholdings in about 40 corporationsworldwide(Narayan et al.,2016).
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