report on corporate governance and business ethics

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1、CorporateGovernanceandBusinessEthics1.IntroductionConceptofcorporategovernanceandbusinessethicshasgainedsignificantimportance.Corporategovernancehasenjoyedalongtraditionintheworldofmanagementsciences.Goodcorporategovernanceiskeytotheintegrityofcorporations,financialinstitutionsandmarkets,andce

2、ntraltothehealthofoureconomiesandtheirstability.Withthegrowingstrengthofconsumermovementsandrisinglevelsofawarenessamongstakeholders,corporationsarerealizingthatstakeholdersandconsumersarenolongerindifferenttounethicalpracticeslikefinancialirregularities,tax-evasion,poorqualityproductsandservi

3、ces,kick-backs,non-compliancewithenvironmentalissues,andhazardousworkingconditions.(RDJajoo,2008)Corporategovernanceandbusinessethicsareimportantelementsforwell-functioningofthesociety.2.BusinessEthicsandCorporateGovernanceThefast-movingeconomicdevelopmentprovideshugeopportunitiesforcorporatet

4、ogrow.Meanwhile,thecompetitionrequiresthecompanytofindthemostsuitablewayforitslong-termdevelopment.Recentbusinessscandalsandfinancialcrisescontinuetoprovideamplecauseforconcernandhaveallfuelledinterestintheethicalaspects.Moreandmoreattentionisbeingpaidonbusinessethics.2.1DefinitionofCorporateG

5、overnanceTraditionally,itisdefinedasleadershipandcontrolofafirmwiththeaimofsecuringthelong-termsurvivalandviabilityofthatfirm.“Corporategovernanceisthesystembywhichcompaniesaredirectedandmanaged.Itinfluenceshowtheobjectivesofthecompanyaresetandachieved,howriskismonitoredandassessed,andhowperfo

6、rmanceisoptimized.Goodcorporategovernancestructuresencouragecompaniestocreatevalue(throughentrepreneurism,innovation,developmentandexploration)andprovideaccountabilityandcontrolsystemscommensuratewiththerisksinvolved.”(QuotedfromASXCorporateGovernancePrinciplesandRecommendations)Sometimescorpo

7、rategovernanceisregardedasacontrolmechanismthatensurestheoptimumuseofthehuman,physicalandfinancialresourcesofanenterprise.Complexityincreasesifweembedtheeconomicapproachofcorporategovernanceinaphilosophicalcontext.Economicscienceshavefa