THE VALUE CREATION

Corporate governance and ethics to the firm value

The context of the firm value

Any firm is based upon managerial implications comprised of the organizational theory. The paradigms are much essential while addressing the notions that lead to the valuation of the firm. There are several management paradigms that are responsible for the value of the firm. Two of these paradigms comprise of ethics and corporate governance.

The purpose of the paper

The purpose of the paper is to explain the significance of corporate governance, as well as, ethics to the organization. The paper assesses the concept of ethics, as well as, corporate governance. It explains what is meant by ethics in a corporate culture, whereas, the significance of the corporate ethics. It further goes deeper to build the concept of corporate governance, as well as, its significance to the corporation. The paper addresses the procedure of building a sound mechanism for each one of them individually, as well as, the consequences of not having them in the organization. The paper concludes with the importance of corporate ethics, as well as, corporate governance. It addresses how they add value to the firm, as well as, lead it to sustainable success.

The subject

The subject of the paper encompasses of two major notions dealing with the human resource management, that is, the corporate ethics, as well as, the corporate governance in an organization. The subject encompasses of the main idea that both these elements are created to lead the organization towards value addition.

The context of corporate governance is to develop a streamlined way through which organizations are controlled and directed. The paradigm of governance is the spread and division of the responsibilities and rights of managers, stakeholders and other authoritative figures. It is the importance of corporate culture, since it outlines the procedure for corporate decision making, as well as, the notion for the settlement of corporate affairs.

Similarly, the development of the atmosphere that fosters corporate ethics in the organization is very essential. The purpose of building corporate code of ethics id to build the normative of right and wrong in the society, whereas, the development of such an environment that is built upon values of human integration of the moral and ethical paradigms over the way the individual in the organization works and deals with everyday matters. The way an individual shows his conduct in an organization is an essential factor for the success of the human capital.

Corporate governance

The term corporate governance is an important paradigm for corporate management. Corporate management is a premise that develops the context of corporate dynamics run smooth and effective throughout all the life of the organization. The term corporate governance is defined as “the governance structure that specifies the distribution of rights and responsibilities amongst all the responsible figures of the organization, as well as, stake holders, so as to develop the smooth functioning of the organizational procedures, and enhance the benefit to the stakeholders”. It is a very detailed and ...