Relevance of Business Ethics in Corporate Governance

Abstract

Strong Corporate Governance is indispensable to a resilient and vibrant corporate market and is an important instrument of investor’s protection. The essence of corporate governance involves the development of a constructive relationship between different constituents of a corporate enterprise based on the principles of fairness, transparency and accountability. Corporate governance is concerned with establishing a system whereby the directors are entrusted with responsibilities and duties in relation to the direction of a company’s affairs. Corporate governance helps to improve the efficiency of corporate. Therefore present study concentrates on corporate governance. For the smooth functioning of corporate governance, business ethics is essential and vital. Business ethics is nothing but the application of ethical values to business behaviour. It is about how a company does its business and how it behaves instrically. To face competition in the markets due to new economic policies such as globalization, liberalization etc and to get more profit adopting ethical values in business is important. Business ethics in corporate governance is changing and scandals, scam and corruption within corporate governance are emerging. So corporate governance is facing problem to work properly. Failure of corporate has negative impacts on society and environment. Negligence of business ethics in corporate governance is only responsible factor for the failure of corporate. Hence present study focuses on the relevance and necessity of business ethics in corporate governance. Ethics is not only play an important role in business but also in day today life. Honesty, sincerity, transparency and taking risk of their own responsibility are important elements of ethics one has to incorporate in his own life. Making more profit is good thing, but to make more profit it is necessary to implement ethical issues in the business. Then only it is possible to us to get more profit beyond our expectations. Business ethics helps to maintain relationships between company and society and to regain the stakeholders of companies. Therefore it is necessary for every company to adopt the ethical culture in their company. So present paper also focuses the strategies to enhance the business ethics in corporate governance.

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