Ethics And Corporate Governance: The Concept Of Ethics In Business

Likewise, managing the shareholder’s interest or value is also derived through the concept of ethics and corporate governance. This concept deals with communication between the shareholders and their representatives of an organization in order to know how well the organization is performing so that they can discuss and plan the further activities. This aspect is mostly like to be only between shareholders and top management as shareholder chooses the representatives. The performance is evaluated and the representatives might be replaced with new one if the shareholders finds out the performance is not carried out in a proper way. And this surely helps in the effectiveness of an organization. Shareholders have a view of taking an organization to a long duration or so called as long term survival for which they always looks for an organization to perform better and meet the standard that they have created. The corporate governance structure should consist of internal and external mechanisms designed to effectively align the behavior of managements with the desires of shareholders. (Rezaee, 2009) Sustaining in this dynamic environment is definitely a challenging task for any management so the management must be accurate and …show more content…
Different theories to these concepts have made the task of management to bring out effective solutions to overcome the different problem they have in an organization. These all above mentioned aspects are to be observed carefully in order to have the sustainability in this dynamic environment as it is the most difficult task in this challenging and competitive world. When crucial decision arise, management can be guided by their determination of what is likely to create strategic value, where the goods of stakeholder may well be taken into consideration, but as means to purpose of wealth creation over the long term (Nordberg,