Corporate Governance and Ethical Responsibility

Abstract

Ethics refers to the 'moral principles or values that generally govern the conduct of an individual or a group'. Ethics in business implies code of behavior that a business follows in its everyday operation. Business ethics is one of the primary concerns in the corporate world. This paper aims to analyze the Corporate Governance and ethical responsibilities. Ethical concepts and theories like utilitarianism and deontology are discussed and their relevance to the case study of Dr. DoRight is also elucidated.

Table of Contents

Introduction4

Body: Discussion and Analysis4

Internal & External Stakeholders4

Conflicts of Interest5

Deontology Principle & its Relevance to Dr. DoRight Ethical Dilemma5

Utilitarianism Principle & its Relevance to Dr. DoRight Ethical Dilemma6

Conclusion7

References8

Corporate Governance and Ethical Responsibility

Introduction

Ethics occupy immense significance in the business world. Ethics creates differentiation between right and wrong. Ethics refers to the 'moral principles or values that generally govern the conduct of an individual or a group'. Business ethics refers to a professional ethics and applied ethics form, which scrutinize ethical problems and principles that take place in a business setting. Business ethics play an important role in maintaining cordial relations with the colleagues. In this research paper, the case of Dr. DoRight- President of the “Universal Human Care Hospital” has to be discussed, who are facing ethical dilemma within his organizational setting.

Body: Discussion and Analysis

Internal & External Stakeholders

Stakeholders are the groups and individuals, who have interests in the organization and therefore may wish to have an effect on its purpose, mission and objectives. Those stakeholders, who have participation in the funding, management and resourcing of the strategy are termed as internal stakeholders. Thus, internal stakeholders are the people who work with the organization or for who have any vested interest in the success or failure of an organization. Three internal stakeholders that Dr. DoRight might have to deal with on a daily basis at the hospital include: physicians, nurses and managers or supervisors.

The stakeholders that are involved from outside the organization in contributing their views and experiences in addressing the issues that are important to them as patients, service users, carers and members of the local community are termed as external stakeholders. Three external stakeholders that Dr. DoRight might have to deal with on a daily basis at the hospital include: patients, visitors, community organizations and other corporations.

Conflicts of Interest

A conflict f interest arises wherein an interest intervenes, or has the likelihood to interpose, with ability of an organization, a person or an institution to act according to the interest of another party, making this assumption that there is a legal, fiduciary or legal obligation over it to do so. (Argandona A., 2004) Conflicts of interest in this scenario are:

Doctors and nurses showing negligence in care of patients

Regional Director Compliance Manager and Executive Committee taking no action against the doctors and nurses involved in practicing illegal procedures

Managers who oversight their duties

Patients having right of quality healthcare

Deontology Principle & its Relevance to Dr. DoRight Ethical Dilemma

Kantian ethics principle refers to the balanced process found upon right and ...