BUSINESS ETHICS AND GOVERNANCE

Business Ethics and Governance

Business Ethics and Governance

The testing of relationship between shareholder value within corporate governance and business ethics, there has been building of better relations with primary stakeholders like employees, customers, suppliers and communities could lead to increased shareholder wealth by helping firms develop intangible, valuable assets which can be sources of competitive advantage. On the other hand, using corporate resources for social issues not related to primary stakeholders may not create value for shareholders (Harrison, 2001). Adhering to propositions with data from certain firms and find evidence that stakeholder management leads to improved shareholder value, while social issue participation is negatively associated with shareholder value. In recent years, there has been a surge in corporate governance reform around the world and the phenomenon is evident in the number of national corporate governance reports that have been produced (Harrison, 2001).

The need to analyze national codes of corporate governance in order to determine how the relationship between corporate governance and business ethics as being perceived in lieu to shareholder value by providing background to the corporate governance reform process that still is in the making in such region. Research will explore relation between corporate governance and business ethics by looking at various aspects of corporate governance that might have an impact on how business ethics is being perceived and practiced along with value tenets as innovative corporate governance developments that might have an impact on shareholder prominence and practice of business ethics have to be reviewed (Hofstede, 1983, 75-89). Thus, explore if institutional investors, employees from public trade companies in the UK, as well as members of the public feel that corporate governance and business ethics add to shareholder value as the value begin with assumption that shareholder related values are necessarily core part of doing business.

There asks managers to articulate shared sense of value they create and what brings its core shareholders together. There pushes managers to be clear about how they want to do business, specifically what kinds of relationships they want and need to create with their stakeholders to deliver on their purpose (Hofstede, 1983, 75-89). For this research, the need to develop integrated approach towards corporate governance and business ethics in respect to shareholder value, business can learn from the development of strategic planning for applications of integrated corporate governance approach to business ethics. The imperative action to suggest ways of how certain weaknesses might be avoided and provide questions for boards of directors to consider when integrating ethical concerns into the organisations' corporate governance structures (Papers, 2006).

Moreover, much was written about stakeholder analysis as process by which to introduce ethical values into management decision making there take critical look at the assumptions behind the idea, in an effort to understand better the meaning of ethical management decisions and yield business without ethics and the latter appears to yield ethics without business. To investigate the potential impact for firms of not putting ethics and governance high on their strategic agenda, drawing on interviews with ...