Management : Analyse the Effect of Corporate Governance Theories

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2020Management
Management
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Contents
Introduction............................................................................................................... 3
Ethical issues............................................................................................................. 3
Implication of ethical issues on corporate sustainability.........................................................4
Conclusion................................................................................................................ 6
References................................................................................................................ 8

Introduction
The report demonstrates critical understanding of ethical perspectives with an aim to achieve
goals. The report comes up to analyse the effect of corporate governance theories, it is seen
that complying with corporate governance leads to strengthen the brand image of company. It
is the procedure through which organisations are operated and controlled encompasses on
external and internal factors, which affect interest of organisation`s stakeholders such as
government regulators, customers, shareholders, and suppliers (Balvanera et al., 2017).
The report considers practical implications of unethical examples based on corporate
governance and corporate reputation with the help of examples of corporates. With the
increasing competition in the global market, it is seen that sustainability has been most
ignored consideration for the companies but gradually government has imposed its
importance for all the organisations, which has mandate them to accomplish CSR strategies
and report environment law compliance (Horr et al., 2016).
Ethical issues
The role of corporate sustainability will be directed where there are the responsibilities of
board, which includes settings of organisation`s strategic objectives, availing leadership into
effect, supervision of management and then reporting to the shareholders on stewardship
(Bjelica et al., 2016).
To ensure corporate governance and sustainability, any company has to meet eight features
such as accountable, effective, efficient, equitable, responsive, transparent, and inclusive of
rule of law. Highest level of confidence that is associated with organisation that is known to
have good corporate sustainability and governance (Bjelica et al., 2016). Poor corporate