Business Ethics Review Question

p BUSINESS ETHICS REVIEW QUESTION

2007

Good corporate governance as a system of governance is essential from all points of view - legal , social , ethical and economic . Sony and BMW (Germany )have established a strong network helping the society and the nation at large , which has introduced confidence amongst its share holders

Auditors were following questionable accounting practices on behest of the management and often advising on how doubtful accounting choices might be made so as to remain on the right side of law and at the same time , escape detection by

users of financial information . All these factors put strong pressure on many corporates to evolve a good governance practice

Over a period of time companies have evolved sound principles of governance , intertwining corporate governance with social responsibility . These companies have become global and it is common to find global norms of accounting and disclosure being followed in these corporate houses . Rights of employees , stock options , independent directors , meeting quality norms , price warranty and guarantee - all these have made room for quality governance . Managers have become trustees of shareholders

CORPORATE SOCIAL PERSPECTIVE TO THE OPERATION

The management of the company believes that corporate performance in the long run is co-related to corporate governance and that well governed companies mitigate non-business risks better . It is therefore , committed to further improve the corporate governance practices in the company by laying emphasis on substance of corporate governance over the form . The company endeavors to adopt the best practices in corporate governance and thereby aims to increase the value for all its stakeholders

Governance Practices

The company had constituted a governance practice committee with the objective

a ) To hold periodic discussions with the Statutory Auditors and Internal Auditors of the company concerning the accounts of the company , internal control systems , scope of audit and observations of the Auditors /Internal Auditors

b ) To review compliance with internal control systems

c ) To review the quarterly , half-yearly and annual financial results of the company before submission to the Board

d ) To make recommendations to the Board on any matter relating to the financial management of the company , including the Audit Report

e ) Recommending the appointment of statutory auditors and branch auditors and fixation of their remuneration

Examples and Practices

The major players in the area of corporate governance , within the corporation are corporate board , shareholders and employees . Externally the pace for corporate governance is set by the government as the regulator , customer , and lenders of finance and social ethos of our times . The scope and extent of corporate governance are set by the legal , financial and business framework . In essence , corporate governance is the system by which companies are directed and controlled Board of Directors are responsible for the governance of their enterprises

People at the helm of affairs of an enterprise are responsible for the good governance of the enterprise . The Board of Directors are responsible for the governance of their enterprises , in a given economic , political and social environment . The role of the board and the...