Since artisan age, till today the advancements that have been done can be considered as an act of providing never-ending luxury to the humans. Due to the creativity and the development of business mindedness humans always led in a way which gave them ease for the living and to provide them security and help them get better recognitions. In this race of recognitions and fame, people were misguided from the actual thought and the intent for which they started up the job and hence always found a dodgy and illegal way to accomplish them. Due to upcoming business models and the advancements, these things were never highlighted and became a choice of people. In order to curb this hole of irresponsibility, the corporate governance need was felt and it was introduced.
Corporate Governance is the heart of the business, irrespective of the type of business for which it is implemented. These regulations and checks play the most vital role in increasing the efficiency of the system or for the expansion of the growth. It comprises of the value, financial and ethical framework under which the business are done or governed. It is mainly to promote the fairness, accountability and the transparency for the stakeholders in the global corporate milieu. It was implemented and introduced for a better decision making, risk assessment, to keep a control or check on the people who govern and guide the business. Post-its implementation effective ways were introduced for setting up the company’s goals and objectives, better and efficient ways were thought of for the optimization of the performance and keeping an eye on the risk analysis.
The core objective of bringing corporate governance was to sharply define the objectives of the firm in coming future and to look for improvisation for the achievement of the goal. As a result of this regulation, the participative management was introduced and each and every member of the board was accountable for the business, and hence better transparency was achieved and it resulted in the complete satisfaction of the stakeholders.
Business Ethics is a moral and ethical implementation of norms to business. “ Ethos”, a Greek word which means character or some trait which gives individuality, distinguished characteristics, approach, intent, and belief to any person or group is what is called Ethics. It can be regarded as a set of the principles of human nature conduct which influence and guide the brain and behaviour of individuals. It can be regarded as a moral set of principles that one should pursue in order to work in a progressive environment. Business ethics comprises of the set of principles that should be implemented on the people who are the part of the firm which makes them more socially and morally strong, as a result of the same a better productive participative management can be implemented.
Since ages, it has been seen and has been highlighted by a lot of thinkers that the companies working and following the business ethics tend to succeed more and produce competitive market, than the companies who don’t follow the ethics and sooner or later it results in the downfall. Ethical environment matters a lot to the employees. If a company has an ethical way of working then it attracts more talented and creates dedicated and long lasting workers. It helps in creating an environment which is completely trustworthy, transparent and it makes all the employees accountable which results in enhanced productivity and the dedication and hence the outcome is the increase in the market and revenue of the company.
As it is rightly said by Marcus Buckingham “ People don’t leave bad companies, they leave bad managers.”
CORPORATE GOVERNANCE AND BUSINESS ETHICS
A business needs a driving force and if rest other components are properly gelled up then it works in very efficiently. In order to maintain the transparency and the accountability of each and every individual, there needs to be participative management and the motivation of the employees should be expanding the business and giving their best. This can only be achieved if the rest of the mental distractions such as social, financial and personal relations are very well taken care of. If the mind works precisely in any one direction it delivers the best and ethics are already covered in the same. The question of ethics and its need is felt when the governance are not able to deliver the best what the employee deserves.
If a proper check and transparency would have been there in South Korea then Ms. Parker (President of South Korea) would not have even thought of pressurizing the firms to collect the funds. As an outcome of this scam, it gave birth to a sense of doubt among the employees of the companies who used to support the President, which will certainly result in defamation. Stakeholders will now think before investing in the firms like Samsung which have been dragged in this scam.
The above example completely implies that even though perfect smooth running governance is visible from outside but if the governing members are not accountable, transparent, morally and ethically sounds it can cause a huge havoc in the global market and could take years to bear the loss.