Corporate Governance and Ethics Essay -- Business Ethics

As a CEO of a corporation there is nothing more rewarding then maximizing the wealth of your shareholders, in addition, to increasing the value of the firm. However, it should not be done unethically and jeopardize the financial, social status as well as the reputation of the company, ultimately causing them to suffer in the end. There are systems put into place to avoid such acts that are generally overseen by the board of the directors of organization. In most companies the board of directors consists of shareholders or former employees of the company. Due to the recent scandals in corporate America many companies have acted quickly in actually implementing rules and regulations. They are sometimes referred to as the ethical codes. In this paper I will discuss the importance of corporate governance and ethical codes within a corporation. How has the recent crackdown changed corporate America? Has there been an improvement? Does the gender of top management have an impact on t he company’s performance? Are we able to determine if independent directors influence the social responsibility and corporate governance of the organization? I will attempt to address these issues throughout this paper. â€Æ' Analysis/Critical Evaluation Corporate Governance is defined as a system that has been established to direct and control companies and I controlled by, (QFinance – The Ultimate Resource, 2009, para. 1.), the board of directors, who must abide by rules and regulations, while implementing such a system. Their duties include, setting the strategic goals of the company, provide leadership and reporting to the companies stakeholders (QFinance - The Ultimate Resource, 2009, para 1). Socially responsible firms are defined as firms ... ...SIBILITY AND CORPORATE GOVERNANCE. Economic Affairs, 29(4), 5-10. doi:10.1111/j.1468-0270.2009.01940.x Llopis, J., Reyes Gonzalez, M. M., & Gasco, J. L. (2007). Corporate governance and organisational culture: The role of ethics officers. International Journal of Disclosure & Governance, 4(2), 96-105. doi:10.1057/palgrave.jdg.2050051 Kanji, G. K., & Chopra, P. K. (2010). Corporate social responsibility in a global economy. Total Quality Management & Business Excellence, 21(2), 119-143. doi:10.1080/14783360903549808 Holder-Webb, L., & Sharma, D. S. (2010). The Effect of Governance on Credit Decisions and Perceptions of Reporting Reliability. Behavioral Research in Accounting, 22(1), 1-20. doi:10.2308/bria.2010.22.1.1 QFINANCE – The Ultimate Resource,  © 2009 Bloomsbury Information Ltd. - http://www.qfinance.com/dictionary http://en.wikipedia.org/wiki/Ethical_code