Essay about The Importance Of Ethics And Corporate Governance

726 Words Sep 11th, 2016 3 Pages
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 effective to design a prompt decision regarding different aspects that the organization goes through. That is the reason why shareholders look for the better representative to whom they can rely and watch his/her performance. Also, not only…

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